simple program

Ideally the SIMPLE loan product is used with 9% Housing Credit projects. However, limited amounts of uninsured lending may be eligible for other projects.

No. Typically, CHFA financing is non-recourse to the developer. In most cases collateral will consist of the project land and improvements being financed along with any other security CHFA deems necessary.

Uninsured does not include a credit enhancement product, such as Federal Housing Administration (FHA) insurance, and does not require a Mortgage Insurance Premium. Insured products utilize FHA Insurance or other credit enhancements to back multifamily loans.

Typically, the underwriting review takes 60-90 days from receipt of complete application to loan commitment.

The loan will fund after construction is complete and the project has achieved stabilization. Stabilization is defined as 90 consecutive days of 93 percent occupancy, 1.15 debt service coverage, and rents at the underwritten amounts.

The 2 percent rate lock fee (non-refundable) is due when the loan commitment is returned to CHFA and accepted.

CHFA requires an operating reserve sized to six months of underwritten operating expenses and debt service. Replacement reserve deposits and tax/insurance escrows are required once the project converts to the permanent period. For new construction projects, the minimum replacement reserve deposit is $250 per unit per year for senior properties, $300 per unit per year for family properties, and $350 per unit per year for permanent supportive housing properties. For acquisition/rehab properties, the corresponding reserves minimums would be increased by $50 per unit per year.