Freddie Mac Affordable Moderate Rehabilitation Loan

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Terms

4% LIHTC 9% LIHTC
Description Bond Credit Enhancements provide
for the moderate rehabilitation with
tenants in place of affordable multifamily
properties with 4% LIHTC
Financing for the moderate rehabilitation with tenants in place of affordable multifamily
properties with 9% LIHTC
Type of Funding Bond Credit Enhancements provide
for the moderate rehabilitation with
tenants in place of affordable multifamily
properties with 4% LIHTC for the acquisition or refinance of stabilized
affordable multifamily properties
Financing for acquisition/ rehabilitation (max
24 months); based on projected post-rehab
NOI; cash or letter of credit collateral required to fund gap between supportable debt on current NOI and mortgage amount (collateral held until
stabilization); Interest only during the rehabilitation/
stabilization period
Eligible Properties Garden, mid-rise or high-rise multifamily
properties with 4% LIHTC undergoing
moderate rehabilitation with tenants in place
Garden, mid-rise or high-rise multifamily properties with 9% LIHTC that are undergoing moderate
rehabilitation with tenants in place
Loan Term Minimum of the remaining LIHTC compliance period. Maximum term of
35 years. Rehabilitation/ stabilization period (max 24 months) will be included in loan term.
Minimum of the remaining LIHTC compliance
period. Maximum term of 35 years. Rehabilitation/
stabilization period (max 24 months) will be included in loan term.
Amortization Up to 35 years Up to 35 years
Debt Service Coverage
  • Variable-rate with cap hedge: 1.20x; 1.25x for cash-out refinance
  • Fixed-rate and variable rate with
    minimum 10-year swap: 1.15x; 1.20x for cash-out refinance
  • 1.15x (1.10x w HUD Risk Sharing)
  • Cash-out Refinance: 1.20x (1.15x w/ HUD
    Risk Sharing)
Loan-to-Value
Maximum
  • Variable-rate with cap hedge:
    80% of adjusted value or 85%
    of market value
  • Fixed-rate and variable rate
    with minimum 10-year swap:
    85% of adjusted value or 90%
    of market value
  • HUD Risk Sharing (fixed-rate only):
    90% of adjusted value
90% of market value
Prepayment Fee Maintenance Defeasance or Yield Maintenance