The Solution
The HUD Tax Credit Pilot Program significantly reduces the timeline for loan approval and closing, allowing investors to accelerate projects and manage cash flows more effectively. This program also provides clear ratios to help manage project finances to ensure viability and make decisions. The W&D team delivered a $23,474,500 224(d)4 loan to the client within 38 days from submission to HUD for review and approval. With a shorter processing time, investors can start filling the gap in affordable housing and potentially create more affordable opportunities.
The Result
The construction financing of Shallowford Pointe allowed our client to contribute 96 affordable units to the community. A smart, efficient approval process greenlighted the project so these units can start making an impact sooner. By financing the property with Low Income Housing Tax Credits (LIHTCs), the developer ensures that 100 percent of the units will be restricted to 60 percent AMI. Additionally, 100 percent of the units will receive subsidies via a project- based voucher contract to make these units even more accessible to low-income occupants. Our client receives the benefit of guaranteed rental income, while area families and residents can feel confident in long-term affordability.
The experts who closed the deal
Contact an expert
For comprehensive loan services, we are your go-to service provider. Talk with us today about your needs.