BOSTON - Bank of Boston Corp. and Related Capital Co. of New York have formed a strategic alliance offering developers of affordable multifamily properties a streamlined integrated financing package.
The fixed-rate financing program provides construction, bridge, permanent, and equity financing for projects benefiting from Low-Income Housing Tax Credits, the bank said.
LIHTC is the federal program responsible for the creation of approximately 125,000 units of multifamily housing each year in the United States. The tax credit program is the principle vehicle for creating multi- family housing for low and moderate-income families.
Among the features of this nationwide program is the elimination of interest rate risk for developers through a fixed-rate long-term financing commitment at the time of construction loan closing. The permanent loan is provided by a Fannie Mae delegated underwriting and servicing lender using Fannie Mae's recently announced new construction product line for targeted affordable housing. Additionally, the application and closing process will be coordinated between the parties and a standard set of documents will be used.