Affordable Housing

Affordable HousingTavernier Capital Funding has been selected to participate in HUD’s recently announced pilot program to streamline the processing of Low Income Housing Tax Credit transactions.

The Housing and Economic Recovery Act of 2008 mandated that FHA streamline mortgage insurance applications for projects with equity from the LIHTC program.  Tavernier Capital Funding, LLC, one of the nation’s elite providers of FHA multifamily and healthcare financing was recently selected to participate asone of a limited number of lenders approved to participate in a new housing tax credit pilot program run by the U.S. Department of Housing and Urban Development’s Federal Housing Administration. Click below to learn more.

The pilot program will test an accelerated approval process for the purchase or refinancing of multifamily rental properties that will undergo moderate rehabilitation and re-syndicate Low-Income Housing Tax Credits (LIHTCs). The program will also finance housing with 90% or more project-based rental assistance in need of moderate rehabilitation. Tavernier Capital Funding, LLC will now be able to offer its clients fast-track processing for such loans in the Chicago, Detroit, Boston and Los Angeles hubs. FHA’s Office of Multifamily Housing Programs believes it can reduce the time needed to review and approve applications from about one year to as little as 90 days.

Affordable Housing executions often involve both debt and equity sources of funds.  These, often complicated, transactions require detailed analysis and lender guided coordination between several available private and governmental financing agencies. Among the sources of funding for these transactions are FHA mortgage insurance programs, tax-exempt bond financing options, low-income housing tax credits (LIHTC), Historic Tax Credits, New Markets Tax Credits and various government funding plans that can also include subordinated loans and/or grants.  Tavernier Capital Funding maintains a staff of highly knowledgeable professionals in these types of transactions.  Our underwriting group has a wealth of expertise in “affordable housing” finance and the proven ability to provide a complete envelope of services for financing an affordable project in a timely and cost-efficient manner.

HUD defines Affordable Housing as:

a) projects that have a recorded regulatory agreement in effect for at least 15 years after final endorsement; or

b) projects that meet at least the minimum LIHTC restrictions of 20% of units at 50% of the Area Median Income (AMI), or 40% with economic rents (portion paid by tenants) on those units no greater than LIHTC rents; or

c) mixed income projects if the minimum low income unit rent and occupancy restrictions and regulatory agreement meet above criteria.

Tavernier Capital Funding, LLC was formed in 2009 as an FHA-only Lender and is comprised of a staff of experts who are extremely knowledgeable and uniquely qualified to originate, underwrite, close and service all transactions that qualify for financing under HUD’s multifamily and healthcare insurance programs. The company originated, underwrote and closed several transactions over the last three fiscal years that involved affordable/low income housing components.

The leadership and staff of Tavernier Capital Funding made a commitment to affordable housing years ago and we are extremely proud that HUD has recognized that commitment by including us as one of a few select lenders to participate in this important program.  As a player in the LIHTC pilot program we are better positioned to serve our clients’ needs and assist them in obtaining financing approvals for these time-sensitive transactions.