Buena Vista Tower Apartments (Elgin)
IHDA offers bond financing options. Qualifying projects can also receive an allocation of 4% low income housing tax credits. IHDA accepts bond applications at any time during the year. All projects must submit a Preliminary Project Assessment 90 days prior to full application submission. Authority rules governing the bond programs are found in the Illinois Administrative Code, Title 47, Chapter II, Part 365.
IHDA can act as a conduit bond lender by issuing tax-exempt bonds from its annual volume cap amount. The developer seeks out a private placement of those bonds to a bank or investor. IHDA acts as a development partner, while deferring the majority of the underwriting to the lender. More information about the program can be found in the Conduit Bond Program manual.
IHDA can act as bond issuer and lender, and provide credit enhancement through its HUD Risk Share Program. IHDA will underwrite the loan to the Risk Share standards and obtain an FHA-insured loan. The developer is able to work with IHDA directly for the bond issuance, bond loan and automatic 4% LIHTC award. IHDA will also sell the bonds in the marketplace to obtain the bond rate.
|Program||Bond Term||Origination Fee*||Ongoing Servicing/Admin||Credit Enhancement|
|Conduit||Less than 10 Years||1.75%||0.25%||Determined by Lender|
|Conduit||10 Years or Greater||1%||0.25%||Determined by Lender|
Fees and rates are subject to change.
The first step in applying for a Conduit Bond or the IHDA Risk Share Bond Program is to submit a Preliminary Project Assessment (PPA). The PPA addresses project concept, design, location and proposed tenant population. PPAs are either approved or denied by IHDA and are accepted on a rolling basis. Approval of a PPA does not guarantee an allocation of IHDA resources.
For more information on Bond Programs, contact Andy DeCoux, Director, Multifamily Financing at 312-836-5355 or email@example.com.