Bond Financing

This program provides sponsors of selected multifamily housing developments with permanent and construction loans through the sale of tax-exempt or taxable revenue bonds.
 
Eligibility Requirements

Applicants must apply with a form of credit enhancement (FNMA, GNMA, or FHA). Housing must be set aside for low income families or for persons with disabilities or the elderly. A needs assessment and local government certifications must be obtained. If Housing Tax Credits (HTC) are to be utilized, development must be in compliance with the current HTC Program Qualified Allocation Plan (QAP).

Terms of Mortgage

The loan is for up to 50 years. Financing up to 100% for nonprofit sponsors/owners or 90% for all limited profit sponsors/owners is available. Interest rate determined based on market.

Application Procedure
Developers can apply to SDHDA for the financing of new construction or acquisition/substantial rehabilitation of rental properties by using the Multifamily Bond Financing Application.  If utilizing HTC, a SDHDA Housing Tax Credit application must also be submitted with the bond financing application.
 

 

 

Call or e-mail Scott Rounds, Housing Development officer
(605) 773-4532