CHFA Offers New Loan Program with Reduced Rates for Multifamily Developers
(DENVER) - Colorado Housing and Finance Authority (CHFA) is pleased to announce a unique financing structure for affordable housing developers for acquisition, moderate rehab, and refinancing of existing multifamily properties throughout Colorado.
Developed through an innovative partnership with the U.S. Department of Treasury, and the U.S. Department of Housing and Urban Development (HUD), CHFA's FHA Risk Share program provides competitive fixed rate, permanent financing with up to 40-year terms. The CHFA FHA Risk Share program is a credit enhancement tool that CHFA uses to finance affordable rental properties, while delivering favorable terms such as fully amortizing mortgages, higher loan-to-value ratios, and other flexible underwriting features.
"It has significantly reduced the property financing costs resulting in enhanced sustainability for provision of affordable housing in our community," said Richard Maxfield, property manager of Island Grove Village, the first customer to close a transaction with CHFA under the new FHA Risk Share program. Island Grove Village, constructed in 1972, utilized the FHA Risk Share program to refinance and fund large capital improvements to preserve the property.
The interest rate under this program is comparable to a Ginnie Mae backed security. Developers are also permitted to equity takeout for properties involving refinancing of existing debt. Sixty (60) day rate locks are available.
CHFA is a leading lender in the Risk Share program and is excited to offer this unique opportunity to multifamily developers in Colorado, at a time when growing demand continues to outpace the supply of affordable rental units. CHFA estimates over 1,100 affordable rental units will be supported through this new program.
Contact CHFA's community development division to learn more and begin the application process at 303.297.2432. Visit CHFA's website to learn more.