Developers looking to put together LIHTC deals in California, New York, Illinois, Massachusetts, Delaware, Washington DC, and Florida have a new financing option available to them.
Citi Bank has released guidance for its new affordable rental-housing program – The Affordable Housing Subordinate Loan Program. The program was created as a result of a United States Department of Justice foreclosure settlement involving Federal and state claims relating to pre-2009 sales of residential mortgage backed securities. The program will make approximately $200 million in subordinate loans available for LIHTC properties in the noted States. The funds will be available for new construction as well as acquisition/rehab deals. It is expected that the loans will be made available during the next two to four years. Priority will go to projects in small Difficult Development Areas.
Developers contemplating a deal in one of these states in a small area may want to get some information on the program. Following is the website for the program.