Loan Term:
40 years
Interest Rate:
Fixed rate, fully amortizing
Non-recourse:
Non-recourse
Assumable:
Fully assumable
Prepayment:
10% year one, then declining 1% per year; and customizable
Commercial Space:
No commercial space greater than 25% of net rentable area and 20% of effective gross income of the property
Borrower:
A single asset SPE
Escrows:
Preconstruction. Escrows required for taxes, insurance, working capital (2%-4% of the loan), and initial operating deficit. Balances will be released to borrower after 6 consecutive months of break-even operations. Post-Construction. Escrows required for taxes, insurance, and MIP and capital needs replacement reserves (minimum $250 per unit/annually).
Davis Bacon Wages:
Payment of prevailing wages for contractors and subcontractors
Third Party Reports:
Market Study, Appraisal, Environmental Report, future Capital Needs Assessment and an Architectural and Cost Review
DSCR/LTV Requirements:
For Loan Amounts up to $125 Million:
Property Type
Maximum LTC
Minimum DSCR
Subsidized
90%
1.11
Affordable
87%
1.15
Market Rate
85%
1.176
For Loan Amounts $125 Million and above:
Property Type
Maximum LTC
Minimum DSCR
Subsidized 1
80%
1.25
Affordable 2
80%
1.25
Market Rate
75%
1.3
Mortgage Insurance Premium:
- 0.65% annually (0.70% for urban renewal projects under Section 220, 0.25%-0.35% for affordable and subsidized properties, and 0.25% for Green MIP)
- 90% or more of the units are covered by a project based Section 8 contract for at least 15 years.
- 15 or more year regulatory agreement after Final Endorsement with a minimum AMI set aside
