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WHEDA /  Developers and Property Managers /  Financing /  Extremely Low Income Special Funding Round

Extremely Low Income Special Funding Round

WHEDA is making available up to $11 million through a combination of National Housing Trust Funds and Capital Magnet Funds.  This funding round offers a unique opportunity to have additional flexibility in accessing funds that may not have previously been feasible under WHEDA’s traditional Subordinate Debt term sheet.

Eligibility:

  • All projects must include units designated to Very Low and Extremely Low Income households, must demonstrate a financial need, and must be subject to income restrictions and compliance verifications from another existing affordable rental housing program independent of this ELI Housing Subordinate Debt. 
  • Projects must demonstrate an ability to close or enter into a binding commitment to receive the funds by August 31, 2024 and must draw all funds for use in the project by August 31, 2027. Additional details and scoring criteria can be found on the webpage above.

Loan Sizing and Structuring:

  • Loans will be sized based on the a per-unit subsidy limit found in the Request for Applications.
  • This financing may serve as first position loan or subordinate to WHEDA or non-WHEDA senior financing. WHEDA expects to structure awards as low-interest (target rate of 1%-3%), subordinate debt with principal and interest payments to be made from available cash flow from operations with a maximum term of 35 years (to be coterminous with primary mortgage), up to 2 years for construction financing, and 35-year amortization.
  • Interest-only payments may be requested if necessary for project feasibility subject to WHEDA approval.

Application Deadlines:

  • The first round of applications is due April 19, 2024. Two additional application rounds may be held subject to availability of funding with the second round being due May 10, 2024 and the third round being due June 7, 2024. 

 

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