Multifamily 501(c)(3) Bond Program

Highlights:

The Texas State Affordable Housing Corporation has approved its 2012 policies for the 501(c)(3) bond program. Prospective applicants are asked to read the complete RFP and the Manager of Development Finance, David Danenfelzer, at: ddanenfelzer@tsahc.org before applying.

2012 Policies for the 501(c)(3) Bond Program
Application for Multifamily Bonds

 

Introduction:

The Corporation is authorized to issue not-for-profit 501(c)(3) bonds to qualified applicants for the purpose of acquiring, rehabilitating or constructing new affordable rental housing units.  Our program is governed by policies, and application procedures are updated annually by the Corporation’s Board of Directors, a link to the most recent policies and application materials is listed below.

501(c)(3) bonds are limited in their usefulness to financing affordable housing developments.  Like all bond issuances, the proceeds of 501(c)(3) bonds are provided to developments in the form of a long-term (30 to 40 years) amortizing loan. While the interest rates can be lower than conventional financing, the cost of issuing 501(c)(3) bonds often limit their usefulness to large (200+ unit) multifamily developments. Additionally, developments financed with 501(c)(3) bonds are not able to access housing tax credit equity, as a development with private activity bond financing would be. 

The Corporation places additional limitations on it 501(c)(3) bonds that developers should be aware of:

  • All Developments must meet one of the Corporation’s targeted housing needs:
    • Preservation and Rehab of Affordable Housing;
    • Affordable Rural Housing;
    • Supportive Housing Developments; and
    • Affordable Assisted Living
  • All Developments that are eligible for property tax exemptions must comply with the Corporation’s public benefit requirements, pursuant to §2306.563 of the Texas Government Code
  • All Development are required to have evidence of broad community support; and
  • All Developments must have a financial structure that includes equity investments, grants or other forms of financial equity, equivalent to at least 15% of the total development costs.

Applications for the program are accepted on an ongoing basis. All Applicants are required to contact staff prior to request application materials in order to confirm the eligibility of your proposed project.

Please contact the program manger David Danenfelzer at 512-477-3562 or at: ddanenfelzer@tsahc.org