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Download Term Sheet
FREDDIE MAC OPTIGO®
Preservation Rehabilitation Financing
Looking to renovate an affordable multifamily property? We provide financing for the moderate rehabilitation of affordable properties with new Low-Income Housing Tax Credits (LIHTCs).
FUNDS TO RENOVATE AFFORDABLE HOUSING PROPERTIES
Tax-Exempt Financing with 4% LIHTC
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ELIGIBLE PROPERTY TYPES
Garden, mid-rise, or high-rise multifamily properties with new 4% Low-Income Housing Tax Credit (LIHTC) undergoing moderate rehabilitation with tenants in place.
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TERMS
- Minimum term: Remaining LIHTC compliance period or 15 years, whichever is less; 15 years with HUD Risk Sharing.
- Maximum term: 35 years.
- Rehabilitation/stabilization period (maximum of 24 months) will be included in loan term.
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PRODUCT DESCRIPTION
Tax-exempt financing for the moderate rehabilitation of affordable multifamily properties with a new 4% LIHTC and tenants in place.
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TYPE OF FUNDING
Tax-exempt financing for acquisition/rehabilitation based on projected post-rehabilitation net operating income (NOI); cash or letter of credit collateral required to fund gap between supportable debt on current NOI and bond mortgage loan amount (collateral held until stabilization); interest-only during the rehabilitation/stabilization period.
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MINIMUM DEBT COVERAGE RATIO1 (DCR)
- Variable rate with cap hedge: 1.20x.
- Fixed rate: 1.15x.
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MAXIMUM LOAN-TO-VALUE (LTV) RATIO1
- Variable rate with cap hedge: 80% of adjusted value or 85% of market value.
- Fixed rate: 85% of adjusted value or 90%of market value.
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MAXIMUM AMORTIZATION
35 years.
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PREPAYMENT PROVISIONS
Fee maintenance.
9% LIHTC Cash Loan
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ELIGIBLE PROPERTY TYPES
Garden, mid-rise, or high-rise multifamily properties with new 9% LIHTC that are undergoing moderate rehabilitation with tenants in place.
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TERMS
- Minimum term: Lesser of 15 years or the remaining LIHTC compliance period; 15 years with HUD Risk Sharing.
- Maximum term: 35 years.
- Rehabilitation/stabilization period (maximum of 24 months) will be included in loan term.
-
PRODUCT DESCRIPTION
Financing for the moderate rehabilitation of affordable multifamily properties with a new 9% LIHTC and tenants in place.
-
TYPE OF FUNDING
Financing for acquisition/rehabilitation based on projected post-rehabilitation NOI; cash or letter of credit collateral required to fund gap between supportable debt on current NOI and loan amount (collateral held until stabilization); interest-only during the rehabilitation/stabilization period.
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MINIMUM DEBT COVERAGE RATIO1 (DCR)
New tax credits: 1.15x.
-
MAXIMUM LOAN-TO-VALUE (LTV) RATIO1
90% of market value.
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MAXIMUM AMORTIZATION
35 years.
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PREPAYMENT PROVISIONS
Yield maintenance.
Non-LIHTC Cash Loan
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ELIGIBLE PROPERTY TYPES
Garden, midrise, or high-rise multifamily properties undergoing moderate rehabilitation with tenants in place.
-
TERMS
- Minimum term: 5 years
- Maximum term: 15 years.
- Rehabilitation/stabilization period (maximum of 24 months) will be included in loan term.
-
PRODUCT DESCRIPTION
Financing for the moderate rehabilitation of Non-LIHTC affordable multifamily properties that have tenants in place.
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TYPE OF FUNDING
Financing for acquisition/ rehabilitation based on projected post-rehabilitation NOi; cash or letter of credit collateral required to fund gap between supportable debt on current NOi and loan amount (collateral held until stabilization); interest-only during the rehabilitation/stabilization period.
-
MINIMUM DEBT COVERAGE RATIO1 (DCR)
Fixed rate: l.25x.
-
MAXIMUM LOAN-TO-VALUE (LTV) RATIO1
80% of market value.
-
MAXIMUM AMORTIZATION
30 years.
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PREPAYMENT PROVISIONS
Yield maintenance.
In its prequalifying review, Lument will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.