Bridge to Resyndication

Developers/owners with financial capacity who have successfully completed multiple resyndications using 4% LIHTC and tax-exempt debt.

• LIHTC properties at or nearing the end of their compliance period with LIHTC rents.
• Construction must be sound but will often require moderate repair; the only construction completed during the term of this facility would be any required life-safety repairs and material deferred maintenance.
• Must include evidence that a public agency with authority to issue Volume Cap Mortgage Revenue Bonds has sufficient tax-exempt bond (or loan) availability to meet the allocation needs of the anticipated LIHTC resyndication and has a highly predictable process for that allocation.
• A rider to the loan agreement (see below) will include specific performance benchmarks necessary to achieve the resyndication along with interim dates by which they will be achieved; examples would include final plans and specifications for rehabilitation, bond inducement resolution and commitment from the LIHTC investor.

• 24-month loan with one 6-month extension, with approval (see “Extension” below).
• Interest-only, floating-rate loan.
• Standby Fee applicable when used in conjunction with a TEL forward.

1.15x standard.

• 85%.
• Cash equity requirement: 15% if owned less than 3 years.

Determined at funding using the comparable fixed-rate to achieve a 1.0x DCR.

• Will provide specific performance benchmarks and dates by which they must be achieved.
• Performance benchmarks will be based on specific requirements necessary to close the LIHTC resyndication; these will include:
• Bond inducement resolution.
• 4% tax credit allocation.
• Final plans, specifications and budget for rehabilitation.
• LIHTC investor commitment.
• Commitments for all other sources necessary to close the LIHTC resyndication.

Freddie Mac approval required and will be based on progress toward LIHTC resyndication 0.5% fee required.

Quarterly reporting; borrower will provide quarterly updates on progress toward LIHTC resyndication, such as bond inducement resolution, LIHTC investor commitment, completion of plans and specifications, and general contractor bids for construction.

2%.

2%; waived if refinanced by a Freddie Mac securitizable loan.