Developer Loan Programs

Taxable and Tax Exempt Bond Programs

The proceeds from the sale of Agency taxable and/or tax-exempt bonds are used to make conventional loans to finance affordable housing. These loans must be secured by the real estate and recorded in a first lien position. A bond loan may be coupled with the PennHOMES program to enable a development to be affordable by lower income households or to achieve economic feasibility. Applications for bond loans are accepted throughout the year unless the same application is also seeking a PennHOMES loan and/or Low Income Housing Tax Credits.

Please be advised that the Pennsylvania Housing Finance Agency is not currently accepting any new applications seeking 2008 volume cap for Tax Exempt Qualified Residential Rental Facilities. In the event additional volume cap becomes available in 2008 for this program, the Agency will issue a notice of availability and provide application instructions at that time. We encourage you to check this Web site for additional guidance and program updates.

Questions regarding Agency multifamily financing programs should be directed to the Development Division 717.780.3876.

• 2009 Tax Exempt Qualified Residential Rental Facilities Seeking Private Activity Bond Allocations
• 2008 Tax Exempt Qualified Residential Rental Facilities Seeking Private Activity Bond Allocations

Allocation of Private Activity Bond Cap for Qualified Residential Rental Facilities

• 2000 Private Activity Bond Cap Allocations
• 2001 Private Activity Bond Cap Allocations
• 2002 Private Activity Bond Cap Allocations
• 2003 Private Activity Bond Cap Allocations
• 2005 - 2006 Private Activity Bond Cap Allocations

PennHOMES Program

The PennHOMES program can provide a soft loan to a development that restricts one-half of the PennHOMES assisted units for households with incomes at or below 50 percent of the area’s median income. The remaining PennHOMES assisted units must be restricted for households with incomes at or below 60 percent of the area’s median income. The PennHOMES loan can be subordinated only to an Agency or Agency approved third party primary mortgage loan. The PennHOMES loan has a zero percent interest rate, a 30-year term, and repayment is made from excess cash flow as determined annually by the Agency. Funding is limited and applicants are encouraged to make maximum use of other public and private financing resources. Application for PennHOMES funds are accepted only during an application cycle as identified in the guideline section of the application.

• Applications for PennHOMES funding granted Feasibility Study approval in 2008

Equity Bridge Loan Program

This demonstration program provides short term loans to bridge the PHFA cash equity requirement for developments financed with a PHFA bond or PennHOMES loan. This program is not available to developments seeking only an allocation of tax credits. Detailed terms and conditions can be found in the guideline section of the application. An equity bridge loan may be sought as part of the initial application or anytime prior to firm loan commitment for developments with Feasibility Study approval. Funding for the program is limited and will be approved on a first–come, first–served basis.

Construction Loan

This program provides below market rate construction loans for multifamily rental housing developments in conjunction with a permanent take-out loan from a lender other than the Agency. Applications for a construction loan may be submitted anytime throughout the year unless the applicant is also seeking a PennHOMES Loan and/or Low Income Housing Tax Credits.

Program Requirements

The information above is not a complete description of the various programs and is subject to change without notice. Detailed program information including eligibility requirements, maximum/minimum loan amounts, repayment terms and conditions, and application deadlines is found in the Application.