RIHousing: Deferred Payment Loan Funds

RIHousing announces the availability of approximately $5 million in financing for the construction and/or rehabilitation of properties to be used as affordable rental homes in Rhode Island. Deferred Payment Loan Funds (“DPLF”) may be made available to write down the cost of developments as needed. These funds may be used as second mortgage financing but not as an operating subsidy. DPLF are only available to those developments utilizing RIHousing first mortgage financing. RIHousing reserves the right to waive this provision if there are significant benefits resulting from the use of other first mortgage financing. A preference will be given for developments utilizing low income housing tax credits (“LIHTC”).

The maximum amount of DPLF available for one development is $1.5 million. The maximum amount of DPLF per low-income unit is as follows:

Maximum Per Unit Deferred Payment Loan

Size of Unit Maximum DPLF Per Unit

Efficiency $10,000

1 BR $15,000

2 BR $25,000

3 BR $30,000

4 BR $30,000

The interest rate on DPLF will be 5% simple interest. The term of the loan will be a maximum of 40 years and co-terminus with the senior debt. Repayment of DPLF will be made from 50% of surplus cash. Underwriting terms must be consistent with RIHousing standard underwriting guidelines as outlined in the Developer's Handbook.

APPLICATION PROCESS

DPLF will be awarded concurrently with 2021 LIHTC awards. LIHTC applications will be accepted for proposals that request financing for the construction and/or rehabilitation of properties to be used as affordable rental homes in Rhode Island.

APPLICATION SUBMISSION

Applicants must submit an original of the LIHTC application, and upload one electronic version of the full application per the application instructions. The Developer's Handbook, the guide to submitting a funding proposal, has been updated for 2021. The Handbook including the application and related forms, and the 2021 Qualified Allocation Plan are available on our website at www.rihousing.com For more information contact Anne Berman at 401-457-1269 or aberman@rihousing.com.

Proposals must be received before 4:00 p.m. on Friday, December 18, 2020 addressed to: Eric Shorter, Director of Development, RIHousing, 44 Washington Street, Providence, RI 02903.

Courtesy of RIHousing