
Your
Project must be located in one of our service area cities
or towns
HDF provides commercial loans to affordable housing owners/developers
purchasing multifamily properties (2 or more units, non-owner-occupied)
in our Service Area. For a map and list of towns included
in our Service Area,
click here.
All of the units must be affordable
to income eligible families depending on the location of the
development.
If the development is located in a Low- or Moderate-Income
Census Tract (LMI Tract) as defined by the Federal Financial
Institutions Examination Council (FFIEC), 30% of the development
must be made available to families earning less than the
Metropolitan District (MD) Median Income.
For a map, list of towns and income limits, click
here. You
can find out if your property is in an LMI Tract by clicking
on the
following
website: http://www.ffiec.gov/geocode/default.htm.
Type in the address and hit the "Search" button.
On the next page, click "Get Census Demographic".
If the Tract Income Level box says either Low or Moderate,
your property is in an LMI Tract.
If your development IS NOT in an LMI Tract, 100% of the development
must be to families earning less than the
Metropolitan District (MD) Median Income.
Housing costs charged on a per
household basis must not be greater than 35% of household
income (including utilities) or 30% of household income (excluding
utilities).
Housing costs for rental housing is the monthly rental charge.
Housing costs for for-sale housing include taxes, insurance,
and common area maintenance. Based on the current
Metropolitan District (MD) Median Income,
housing costs cannot exceed $2,280. For rental
developments, if the tenant is a non-Section 8 tenant, tenant
income and housing costs will be verified on an annual basis.
You must be willing to evoke
an affordable deed restriction on your Project.
In an effort to maintain affordability in the Service Area,
HDF requires our lenders to evoke an affordable deed restriction
for the length of HDF's loan term, regardless of any early
repayment of the loan.
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