Preserve/Refinance Multifamily Housing

Financing for existing multifamily developments using both taxable and tax-exempt executions. Available to profit motivated, non-profit motivated and public owners of affordable and mixed-income rental developments.

Non-Substantial Rehab

For properties with minimal to moderate rehabilitation using both taxable and tax-exempt financing primarily through the HUD/HFA Risk Share Financing program.

This option allows for rehabilitation of up to $40,500/unit and not more than one full building system.

View the Non-Substantial Rehabilitation Fact Sheet.

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Substantial Rehabilitation

For properties with rehabilitation costs greater than 15% of value or the $40,500 per unit limitation defined in the Treasury/FFB option.

MassHousing can provide a construction and permanent loan, construction only loan or permanent only loan.

View the Substantial Rehabilitation Fact Sheet.

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Conduit Bond Program

A simplified and streamlined alternative for borrowers who choose to provide their own credit enhancement.

View the Conduit Loan Fact Sheet.

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MAP/GinnieMae 223(f) Refinance/Acquisition

MassHousing provides non-recourse, assumable financing for the purchase or refinance of existing multifamily developments which are at least three years old under the §223(f) Program. The program is available to profit motivated, non-profit motivated and public owners of affordable and mixed-income rental developments.

Program Details

Loans are self-amortizing up to 35 years or 75% of the remaining economic life of the property.

Maximum Loan Amount for refinancing

  • With equity takeout, up to 80% Loan-to-Value (LTV) and 1.20 Debt Service Coverage (DSC) pro forma Net Operating Income (NOI) based upon the lesser of appraised market or current Section 8 contract rents.
  • With no equity takeout or acquisition, Mixed-Income developments up to 85% LTV and 1.176 DSC pro forma NOI based upon the lesser of appraised market or current Section 8 contract rents.
  • With no equity takeout or acquisition, "Affordable" developments (i.e., Project-Based Section 8 HAP Contract for 90% or more units) up to 87% LTV and 1.15 DSC pro forma NOI based upon the lesser of appraised market or current Section 8 contract rents.

Repairs limited to the greater of 15% of value or approximately $17,000/unit; and cannot replace more than one major building system component.

Lockout/Prepayments negotiable, but typically closed for two years then open to prepayment at 8% in year three, declining 1% per year until payable at par after the 10th year.

For more information

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MAP/GinnieMae 223(f) LIHTC Program

MassHousing provides non-recourse, assumable financing for multifamily developments with 4% or 9% Low Income Housing Tax Credits (LIHTC).

Program Details

Loans are self-amortizing up to 35 years or 75% of the remaining economic life of the property.

Maximum Loan Amount

  • Mixed-Income developments up to 85% Loan-to-Value (LTV) and 1.176 Debt Service Coverage (DSC) pro forma Net Operating Income (NOI) based upon the lesser of appraised market or current Section 8 contract rents.
  • Affordable developments

Moderate Rehabilitation up to $40,000/unit; and cannot replace more than one major building system component.

Lockout/Prepayments negotiable, but typically closed for two years then open to prepayment at 8% in year three, declining 1% per year until payable at par after the 10th year.

For more information

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Additional financing options

As an independent lending authority, MassHousing sets its underwriting standards and can offer financing for a variety of projects, including projects using 40B, so long as a minimum of 20% of units are rent restricted and occupied by those earning 80% of area median income. For additional lending terms and conditions, please see the Mixed-Income Financing Programs (40B) term sheet.

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Forms & Documents

Find term sheets, loan application and closing documents, policies, income limits and other resources to help you apply for and close multifamily financing with MassHousing.