Tax Exempt Bond Options In North Carolina TAX
Tax Exempt Bond Options In North Carolina
TAX EXEMPT BOND PROGRAMS MODERATE REHABILITATION DEALS § Fannie Mae/Freddie Mac § FHA 223(f) LIHTC Pilot NEW CONSTRUCTION / SUBSTANTIAL REHABILITATION § FHA 221(d)(4) § Freddie Mac Tax Exempt Loan Program
AGENCY MOD-REHAB STRUCTURE SHORT TERM TAX EXEMPT BONDS § Issued by qualified agency § Private Placement or Sale through Bond Underwriter § Must Meet 50% Test § Cash Collateralized TAXABLE FANNIE/FREDDIE LOAN FUNDED IMMEDIATELY OR DRAWS § Loan Proceeds are collateral for Tax Exempt Bonds § 15 to 18 Year Term, 30 to 35 year amortization § Up to 90% LTV § 1. 15 Debt Coverage § Rates
AGENCY MOD-REHAB BENEFITS Quickest Execution Interest Only Period Lowest Costs No Conversion Risk
FHA 223(f) LIHTC PILOT STRUCTURE SHORT TERM TAX EXEMPT BONDS § Issued by qualified agency § Private Placement or Sale through Bond Underwriter § Must Meet 50% Test § Cash Collateralized TAXABLE 223(f) CLOSED AND FUNDED IMMEDIATELY § Proceeds are collateral for Tax Exempt Bonds § 35 Year Term and Amortization § 87% Loan to Value § 1. 15 Debt Coverage § Rates (Plus MIP)
FHA 223(f) LIHTC Pilot BENEFITS Allows Higher Rehab ($40, 000 per unit) without needing to use 221(d)(4) program Davis Bacon Wages Usually Not Required Quicker Execution than 221(d)(4) Lowest Interest Rate Option Lower Costs/Escrows than 221(d)(4)
FHA 221(d)(4) STRUCTURE SHORT TERM TAX EXEMPT BONDS § Same as 223(f) Structure TAXABLE 221(d)(4) CLOSED AND FUNDED ON DRAW DOWN BASIS § Proceeds are collateral for Tax Exempt Bonds § 40 Year Term and Amortization § 87% Loan to Costs § 1. 15 Debt Coverage § Rates (Plus MIP) § Davis Bacon Wages § Escrows
FHA 221(d)(4) BENEFITS Not Loan to Value Constrained Longest Term and Amortization Generally the Highest Leverage
Freddie Mac TEL STRUCTURE § Qualified Agency Issues Tax Exempt Notes § Short Term Tax Exempt Notes purchased separately § Lender/Freddie Mac Provide Forward Commitment to Purchase Long Term Notes at stabilization § Freddie Mac Locks Rate at Construction closing for Commitment period (24 to 30 months) § 90% Loan to Value § 1. 15 Debt Coverage Ratio § Rate Plus Issuer Fee § Rate Lock Deposit
Freddie Mac TEL BENEFITS Early Rate Lock Flexibility for Short Term Bonds and Equity Pay. In Schedule Competitive Interest Rate Generally the Highest Leverage Strong Loan Leverage No Davis Bacon Wages Quick Execution
HOW DO YOU CHOOSE? TIME SUBORDINATE DEBT LEVERAGE PRE-PAYMENT FLEXIBILITY
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