Subsidy Programs - Loans

Section 202 - Supportive Housing for the Elderly

Section 221 (d) (3) and (4) Mortgage Insurance

Section 108 Loan Guarantees

California Housing Finance Agency, Tax-Exempt Affordable Mortgage Program
Program provides bond-financed 30 to 40 year fixed-rate mortgages for developers of affordable housing projects that have at least 20 percent of their units occupied and affordable to households making no more than 50 percent of the county median income. Eligible applicants include for-profit organizations, non-profit corporations and public housing agencies. 

For more information, contact:
Linn Warren
Chief, Multifamily Lenders
1121 L St., 7th Floor
Sacramento, CA 95814
Phone: (916) 327-3022

California Housing Finance Agency, Taxable Affordable Mortgage Program
Program provides taxable bond-financed mortgages for rental housing projects of which at least 20 percent of the units occupied by households with an income of 50 percent or less of the county median income and are affordable to very low-income households. Eligible applicants include for-profit organizations, non-profit corporations and public housing agencies. 

For more information, contact:
Linn Warren
Chief, Multifamily Lenders
1121 L St., 7th Floor
Sacramento, CA 95814
(916) 327-3022

California Community Reinvestment Corp.(CCRC)
CCRC is a private lender that provides permanent financing to both non-profit corporations and for-profit organizations for new construction, acquisition and rehabilitation of affordable housing projects. Priority is given to projects targeting lowest area median incomes. 

For more information, contact:
California Community Reinvestment Corp.
Mark Rasmussen
1777 Oakland Blvd., Suite 300
Walnut Creek, CA 94596
(510) 939-4787

Loan Management Set-Aside (LMSA)
The goal of the LMSA program is to minimize defaults on HUD-insured multifamily rental projects by ensuring a reliable income stream. It may be used in conjunction with the Flexible Subsidy program. LMSA is a subprogram of the Section 8 Housing Assistance Payments program, which is a rent subsidy program that helps eligible low-income families obtain decent, safe and sanitary housing.

Supplemental Loans for Multifamily Projects (Section 241(a))
Section 241(a) insures loans to finance repairs, additions and improvements to multifamily rental housing and health care facilities. The program is intended to keep projects competitive and extend its economic life.

Two Year Operating Loss Loans (Section 223 (d))
The purpose of Section 223 (d) is to help avoid losses on HUD-insured multifamily projects by insuring loans written to cover operation losses. The two-year operating loss loans insure separate loans that cover operating losses during the first two years after completion of multifamily rental projects whose first mortgage is insured by HUD.

The following loans are provided under the Michigan State Housing Development Agency (MSHDA) but are typical of programs provided in every state.

The Direct Lending Program (70/30 Program)
The Direct Lending Program offers low-interest mortgage loans for new construction and for substantial rehabilitation of existing buildings. Interest rates vary by location with lower rates in distressed areas. Financing is through the sale of tax-exempt bonds. Income limits also vary by location, but at least 20 percent of the units must be occupied by households with incomes less than 50 percent of the area median and 10 percent of the units by households with incomes under 30 percent of median; rents are restricted on these low income units.

For more information, call:
(517) 373-6880
(313) 256-2860

The Taxable Bond Program
The Taxable Bond Program is financed with $50 million in taxable bonds and provides loans for rental housing in which all tenants have incomes at or below 60 percent of the area median and rents will be restricted. The program is designed to be used in conjunction with the federal low-income housing tax credit.

For more information, call:
(517) 373-6880
(313) 256-2860

The 1 percent Tax-Exempt Bond
The 1 percent Tax-Exempt Bond Family Housing Program offers developers 1 percent interest rate loans for constructing or rehabilitating 50-120 units of rental housing for families in distressed areas. Owners can then apply for federal low-income housing tax credits on any of the units that meet the criteria.

For more information, call:
(517) 373-6880

The Pass Through Program
The Pass Through Program allows MSHDA to sell tax-exempt bonds on behalf of developers who supply their own credit enhancement; 20 percent of the units must be occupied by households with incomes less than 50 percent of the median, or 40 percent of the units by tenants under 60 percent of median.

For more information, call:
(313) 256-2860
(517) 373-4880

Moderate rehabilitation loans to landlords
In certain localities that receive grant funds from various federal rental rehabilitation programs, MSHDA offers loans at 8 percent interest to help landlords bring residential rental property to code, add energy improvements and make other types of renovations.

Contractor Assistance Program (CAP)
In conjunction with First Independence National Bank of Detroit, MSHDA provides working capital loans of up to $50,000 to small contractors (with special outreach to female and minority owned firms) which have been selected to work on MSHDA rental housing projects. The program also provides training to the participating contractors in the areas of estimating, budgeting, cash management, cost control and financial reporting.

For more information, call:
(517) 373-6840

Neighborhood Preservation Program
This program offers $25 million in MSHDA funds to finance loans for small apartment buildings in distressed neighborhoods targeted by cities and/or local groups for revitalization.

For more information, call:
(517) 373-1974