Interim Construction and Land Aquisition Loan Program

Highlights:

TSAHC has a new source of capital for acquisition/rehab lending. TSAHC has become the newest member of the REO Capital program from the National Community Stabilization Trust. This new program allows us to increase our leveraging of private dollars in acquisition/rehab programs focused on single family homeownership. Details of the program will be included through links below, along with a term sheet comparison included on this page.

 

Introduction:

TSAHC’s Interim Construction and Land Acquisition Loan Program (ICAP) promotes equal access to safe, decent, and affordable housing by providing short-term financing for site acquisitions and interim construction. The primary goal of the program is to assist rural and underserved communities development single family homes that can be sold to qualified low-income households.  The ICAP program may be used to purchase new housing sites, construct new homes, and even renovate existing housing stock.  The ICAP program may even be used to renovate existing multifamily properties to be converted to cooperative or condominium ownership.

We are now offering an alternative financing channel through our REO Capital relationship. The REO Capital program focuses on providing short term financing to qualified borrowers, that will be purchasing foreclose homes, rehabilitating them, and selling them to qualified low-income homebuyers. A summary of the terms of REO Capital loans is below, and additional details can be received by calling David Danenfelzer, Manager of Development Finance, by phone at: 512.477.3562.


TSAHC accepts applications on an ongoing basis and only when there are available sources of funds for the Program. In the event that there are not sufficient funds available for a Development, the Corporation shall return any commitment fees submitted by a borrower.



The Corporation requires applications be submitted at least 35 business days prior to any recommendations to the Board for award. Applicants are encouraged to communicate with staff as they assemble this application. Please contact David Danenfelzer, Manager of Development Finance, by phone at: 512.477.3562, or by email at: ddanenfelzer@tsahc.org

 
ICAP

REO Capital
Term of Loan
18 mo to originate, 24 mos. total term
18 mo to originate, 36 mos. total term
Interest Rate

4% to 7%, based on collateral and cost of funds

6%
Affordability

TSAHC targets housing developments where at least 50% of the homes will be sold to households earning 80% or less than the AMFI. All homes and buyers must be eligible for fixed rate permanent financing.
Eligible Borrowers
Experienced entities engaged in affordable housing development, including non-profit or for-profit developers.
Eligible Activities

Acquisition of development sites, infrastructure, and housing construction or rehabilitation.

Acquisition and rehab of foreclosed properties for neighborhood stabilization efforts.
Property Types

1 to 4 unit for-sale or cooperative developments
1 to 4 unit for-sale housing
Loan Sizing
$100,000 to $750,000

$750,000 to $2,000,000
Loan-To-Value
80% LTV
85% LTV Max.
Equity Contributions

15% in flexible forms

20% of total development costs in cash equity to be escrowed.
Collateral

First Lien and Title Insurance, Second Lien with Federal Funds Leveraging
First lien mortgage and title insurance
Payment Terms
Repayment due out of net proceeds of sale or refinancing of properties. No pre-payment penalties.
Recourse
Non-Recourse
100% Recourse – requires guarantee from borrower
Origination Fee

Greater of 1% or $7,500.

Sliding Scale based on Loan Amount
Application Fee

$500
$500

 

 

For more information and to discuss lending opportunities please contact David Danenfelzer at 512-477-3562 or at: ddanenfelzer@tsahc.org