- New construction
- Substantial rehabilitation
- First mortgage
- Secondary gap financing with CHFA as senior lender
- Interest rate subsidy
The HOF is a funded from CHFA’s internal resources. As a result, HOF is a flexible source that can be used for a variety of project financing needs.
The loan program requires must-pay, monthly principal and interest payments. As such, the project must demonstrate ability to repay the debt in addition to all senior loans.
Loans are normally funded at the time of conversion to permanent debt upon meeting all closing requirements.
The CHFA HOF can be used to finance small first mortgages, low-rate second mortgage behind CHFA senior debt to leverage additional loan proceeds, or as a subsidy to lower borrowing rates and costs on CHFA senior debt.
Yes, CHFA must be the senior lender.
Yes, because the intent of the program is to serve all affordable properties and especially projects with a smaller loan need.
This may be possible but would need to be evaluated on a case-by-case basis.
Yes, but only when the HOF program is used as a first mortgage or senior debt. If used as a secondary or tertiary debt, reserve requirements are not in place. CHFA requires an operating reserve sized to six months of underwritten operating expenses and debt service. Replacement Reserve deposits and tax/insurance escrows are required once the project converts to the permanent period. For new construction projects, the minimum Replacement Reserve deposit is $250 per unit per year for senior properties, $300 per unit per year for family properties, and $350 per unit per year for permanent supportive housing properties. For acquisition/rehab properties, the corresponding reserves minimums would be increased by $50 per unit per year.