General Loans, Grants and Funding Opportunities
General Loans, Grants, and Funding Opportunities
There are many options available to owners looking to infuse their aging properties with capital, support the project’s sustainability, and preserve its affordability. By pursuing funding through any of these many options, owners help ensure long-term financial viability, perform deferred maintenance projects, and continue basic property upkeep. Tools include loan financing options and other funding sources, which are all available, pursuant to funding availability, to owners advancing the preservation of property affordability in aging properties. MFA’s preservation team is eager to help owners find the path that best suits them toward maintaining their property and its continued affordability in this period of transition. If you have any questions about this program, please contact us.
MFA’s New Mexico Preservation Loan Fund (NMPLF), created in 2023, is a flexible funding source for multifamily properties at-risk of exiting the affordable housing stock, providing opportunities for the preservation of affordable housing in the state of New Mexico. The NM Preservation Loan Fund is available to owners, developers, and other partners seeking funding for a wide array of preservation-oriented needs. This includes rehabilitation funding for owners struggling with physical upkeep as their multifamily property ages, acquisition financing for prospective owners seeking to acquire multifamily affordable projects and maintain their affordability over time, and predevelopment funding for existing LIHTC properties pursuing resyndication. The Fund will strive to provide interest rates and loan terms more flexible than may be provided by traditional financial institutions.
Resyndication
An existing LIHTC property may be resyndicated any time after year 15. The resyndication process essentially allows a property to enter a brand-new tax credit and compliance period by turning it into an acquisition/rehabilitation deal and selling it into a new partnership. This strategy is immensely popular among owners of properties that have passed the end of the Initial Compliance Period and are in need of a source of new equity.
HOME funds may be allocated to owners and developers for eligible activities including site improvements, rehabilitation of units, and other rental development activities. Owners and developers of affordable LIHTC properties often pursue HOME funding to infuse their projects with new financing and support sustained financial viability.
New Mexico Housing Trust Fund (NMHTF)
NMHTF provides flexible funding for housing initiatives that will provide affordable housing for low- or moderate-income New Mexicans. NMHTF can cover eligible costs, including infrastructure or rehabilitation costs, necessary to support their provision of affordable housing. Low-interest NMHTF loans can also pair well with tax credits, including those earned through resyndication, to extend a property’s financial feasibility further into the future.
National Housing Trust Fund (NHTF)
NHTF covers eligible costs for the production, preservation, and rehabilitation of affordable permanent rental housing units for Extremely Low Income households, including refinancing costs, related soft costs, relocation costs, and more. NHTF financing that will be used as a financing resource in a LIHTC property takes the form of non-interest-bearing cash flow – a great way to cover eligible costs associated with the upkeep and financial feasibility of aging properties.
542(c) FHA-Insured Multifamily (Risk Share)
Eligible single-asset mortgagors may pursue a Risk Share loan to support substantial rehabilitation or refinancing activities in detached, semi-detached, row houses, or multifamily structures having no fewer than five units per site. Risk Share loans are valuable in supporting small projects and developers toward sustaining their aging LIHTC properties.
