Bond Financing for Multifamily Rental Development

Whether you’re requesting 4% Low Income Housing Tax Credit (LIHTC) or not, tax-exempt bond financing can be a desirable way to fund your affordable rental housing project. Housing New Mexico | MFA will act as the governmental authority for issuing conduit*, exempt-facility bonds. While Housing New Mexico | MFA does have the authority to issue governmental bonds and qualified 501(c)(3) bonds, it’s current capacity to do so is limited. In conjunction with or separate from tax-exempt bonds, Housing New Mexico | MFA can issue taxable bonds to further assist your development project.

NOTICE: All tax-exempt bonds must be approved and allocated by the New Mexico State Board of Finance under limited provisions for Private Activity Bond (PAB) Volume Cap, of which Housing New Mexico | MFA is authorized to request and issue on. Housing New Mexico | MFA will request an allocation of PAB Volume Cap on behalf of the Developer. More information about PAB Volume Cap can be found at the State Board of Finance’s website: https://www.nmdfa.state.nm.us/board-of-finance/.

This program summary is intended as a general guide to the Developer when choosing Housing New Mexico | MFA to issue (tax-exempt) bonds. Each project may vary in size, structure, and timeline. While Housing New Mexico | MFA is flexible to developer needs, changes in conditions may produce new or revised requirements from those contained in this summary and/or timeline.

Timeline for a New Tax-exempt Bond Issuance with 4% LIHTC

Download the detailed program requirements (including fee schedule) here.

If you have any questions about this program or would like to apply, please contact us.

*Housing New Mexico | MFA can issue bonds with or without providing the credit enhancement. As a "conduit" issuer, Housing New Mexico | MFA issues the bonds that fund your project’s loan but does not provide the loan or take the credit risk. Consequently, the interim and permanent financing, as well as the credit enhancement for the bonds, must be provided through other sources as proposed by the developer of the project. Alternatively, Housing New Mexico | MFA can provide credit enhancement with the use of its 542(c) FHA Mortgage Insurance Program. Processing and approvals may differ by case, with credit enhancement requiring considerably more due diligence for Housing New Mexico | MFA.