Housing Development

Bond Financing

This program provides multifamily housing developers 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, 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, the development must be in compliance with the current HTC Qualified Allocation Plan.

Terms of Mortgage

The loan term can be up to 50 years. Financing up to 100% for nonprofit sponsors/owners or 90% for all limited profit sponsors/owners is available. The Interest rate is based on the current 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 HTCs, a Housing Tax Credit Application must also be submitted with the bond financing application.

Multifamily Bond Financing Application
Housing Tax Credit Application
HTC Qualified Allocation Plan

Call or e-mail Scott Rounds, Housing Development Officer, with your bond financing questions.
Phone: (605) 773-4532