GAHC primarily offers private and not-for-profit developers permanent financing, and the senior security instrument for the loan is held by GAHC.
Eligible Properties….
- Multi-family complexes of twelve (12) or more units.
- Tax credit-qualified one-to-four units assuming each building is part of a single project.
- New Construction or substantially rehabilitated properties requiring a $5000 or more investment per unit.
Eligible Borrowers.…
GAHC works with both private and not-for-profit developers of Affordable Housing. The type of financial support needed by these entities often vary in terms of amount, purpose and development phase funding requirements. To satisfy these vast lending needs, GAHC has developed the following types of affordable housing financing products & programs.
Lending Criteria…
- A portion of the units must be dedicated to low- and moderate-income households, which is defined as those households with earnings of 80% or less of the HUD area median income, or the development must be located in an area that is identified as having special needs by the Georgia Department of Community Affairs or GAHC.
- Dwelling unit rents must conform to the U.S. Internal Revenue Code Section 42 for gross rent restrictions, which also stipulates contract rent and tenant utility allowances. (Generally, the income rent ceiling is 30% of the household's income.)
- Low-income units must be occupied by tenant meeting the HUD definition of low-income at the time of application
Terms
- The maximum loan term is 30 years, fully amortized.
- The index rate is generally based on the monthly average 10-year maturity treasury.
- The loan rate is based on a competitive margin over the applicable index.
- The security is a First Deed to secure debt on the land and improvements.
- The commitment term for permanent loans is a maximum of 18 or 24 months to allow time for syndication of tax credits, commitment for construction loan and to build the project-extensions are granted where appropriate.
- The debt service coverage ratio for all debt, after funding of all required reserves, is, generally, a minimum of 1.10 and is determined by GAHC on a case-by-case basis.
