The Michigan State Housing Development Authority (MSHDA) has released an updated draft of the MSHDA Gap Financing Program. MSHDA is currently accepting comments on the draft and there will be a presentation at the MSHDA Board meeting on September 25, 2013.
The intention of program update is to address concerns of the competitive nature of the program. The update may require a minimum contribution on the part of the sponsor based on the amount of gap funding needed in relation to the permanent Tax-Exempt mortgage loan. The greater the soft to hard debt ratio the larger the contribution requirement will be and it may be in the form of capital, deferred developer fee, and/or a reduced developer fee. It is also noted that with the exception of any Tax Credit equity source, other non-MSHDA funding sources, and/or the additional equity generated by the MSHDA’s Equity Bridge Loan, will be applied against the minimum sponsor funding requirement.
Questions, comments, or suggestions related to the draft Gap Financing Program can be submit them via email to John Hundt at hundtj1@michigan.gov.
For more information on the Gap Financing Program updates please click here.
