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Multifamily Program Overview
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While developers may be eligible to receive financing from more than one of IHDA's sources, please be aware that each program has its own specific requirements and underwriting guidelines that must be met prior to funding. Please visit each of the sections for a more comprehensive understanding of each of the financing sources that may be available to developers, as well as instant access to the required guidelines, requirements and applications and forms that must be completed for consideration of funding.
Developer Resources
Once a proposal has been submitted to IHDA, the Authority offers two other types of assistance. The first is information to help determine if a development is likely to succeed in the long run, taking into account local demographics and other data. The second area of assistance for developers concerns IHDA's requirements (and how to meet them) during the actual construction of an IHDA-financed development. Developers can find detailed information and forms relating to marketing research and construction issues in the following areas:
Information regarding requirements during the construction process:
When a property is under consideration for IHDA funds, staff from IHDA's Construction and Architectural Services Department review the property's initial plans and specifications to determine if the property meets Authority standards. These construction standards can be found within IHDA's Guidelines for Architectural Planning and Construction.
After loan closing and commencement of construction, field representatives conduct periodic on-site construction reviews of the property. In addition to ensuring that a property is constructed per the approved plans and specifications, the construction review is an integral part of IHDA's payout procedure. IHDA will not disburse any loan or grant proceeds without approval from its construction staff.
Once construction is complete, IHDA may grant an owner permission to occupy the newly constructed or rehabilitated property. The requirements to receive this certification are outlined in IHDA's Building Turnover Procedures.
Field representatives also assist IHDA's Asset Management Department by providing construction expertise concerning the Authority's existing multifamily portfolio and by performing Housing Quality Standards (HQS) or physical site inspections as part of the compliance requirements under certain housing programs.
Information regarding marketing- and research-related issues for developers of affordable housing:
The Site and Market Study
Within IHDA's Technical Services Department, the Marketing and Research Group prepares and/or reviews Site & Market Studies for the majority of proposed multifamily developments. For example, individual IHDA program departments determine when a market study is needed and then submit a request memo to the Marketing and Research Group.
The Site & Market Study is prepared according to a model Site & Market Study Scope of Work developed by IHDA's Marketing and Research Group. IHDA has the capacity to conduct market studies utilizing in-house staff or may commission one from an approved outside firm. At the present time, IHDA has a list of several marketing agents that perform studies on a rotational basis.
The purpose of a Site & Market Study is to indicate if a proposed property is marketable in a given market area. The key components of a study check the affordability of proposed rents, determine the pool of eligible renter households, identify and compare competitive properties, and assess the proposed property's likely impact on IHDA or other affordable housing developments in the area.
Once a Site & Market Study has been completed, the Marketing and Research Group staff provides the requesting department with comments on the proposed development and its site, as well as conclusions and recommendations. These recommendations may lead to a change in the property's design (typically a change in rent amounts or the number of units) or to a denial.
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