The Concessionary Debt LIHTC Predevelopment Finance program provides predevelopment loans to eligible for-profit and nonprofit entities, local governments including housing authorities, and tribal governments to finance feasibility expenses of affordable multifamily rental housing developed with federal Low Income Housing Tax Credits.
Please note: Funding for predevelopment will be limited for the initial program year.
Program Details
09-28-2023
Program Benefits | • Predevelopment loans available for projects utilizing federal Low Income Housing Tax Credits • Below-market interest rates |
Eligible Borrowers | • For-profits • Nonprofits • Governmental entities, including housing authorities • Tribal governments |
Eligible Projects | Developments that utilize Low Income Housing Tax Credits |
Program Allocation | 15% to 35% of Affordable Housing Financing Fund (AHFF) allocation |
Area Median Incomes (AMIs) Served | • 60% average AMI for all restricted units |
Program Limits | Maximum predevelopment loan to a project is $750,000 |
Minimum Debt Financing | No minimum |
Interest Rates and Fees | • 3% fixed rate • Standard loan closing costs |
Loan Repayment | • Interest-only payments • Principal due at earlier of close of construction loan or stated maturity date • Terms up to 36 months |
Collateral | Predevelopment loans will be unsecured with recourse guaranties required from the borrower. |
Affordability Restrictions | None in addition to LIHTC requirements |
Priorities | • High-density housing • Mixed-income housing • Environmental sustainability |
How to Apply
Concessionary Debt Process and Timeline
Starting September 18th, applications will be accepted for the Concessionary Debt Multifamily Finance, LIHTC Gap Finance, and LIHTC Predevelopment Finance programs established by Proposition 123. CHFA received 38 applications representing more than $113M in funding requests (PDF). Following the application period, selections will be announced in January 2024.
The application window has closed for the LIHTC Predevelopment program.
Application Timeline:
September 18, 2023 | CHFA will begin accepting applications. |
October 9, 2023 | Application submission period will end at 11:59pm MT. |
January 2024 | CHFA will announce projects selected to receive Concessionary Debt funds. |
Helpful Links
- Concessionary Debt Application Submission List (PDF)
- LIHTC Predevelopment Finance program flyer (PDF)
- LIHTC Predevelopment Finance program guidelines (PDF)
- Training and resources
- Sign up for eNews
Contact
CHFA Community Development
Terry Barnard
Manager, Community Development Lending
303-297-4866
David Foust
Commercial Loan Officer III
303-297-4865
If you have questions, contact CHFA Community Development at [email protected].
