IHDA announces:

The proposed equity pay-instructure for IHDA financed developments:

For new construction and acquisition/ substantial rehabilitation: All equity (net of the developer fee)must be the first funds disbursed, although the equity may be deposited over the construction period (probably 8-12 months). After exhausting the equity, all other loan funds would be disbursed on a pro-rata basis. The only exception would be any development projects financed with FHA insurance. Pursuant to federal rules, FHA development projects must have all equity available at initial closing. In the event the other financing sources in a specific transaction (i.e., banks or Chicago DOH) have a stricter equity requirement, IHDA would defer to the higher standard.