The Michigan State Housing Development Authority (MSHDA) has announced the eighth round for the Gap Financing Program NOFA. The Gap Financing Program NOFA is designed to improve MSHDA’s direct-lending production and to assist with being able to finance tax-exempt bond transactions utilizing the 4% Low Income Housing Tax Credit. As indicated at the start of the seventh round, MSHDA now has two funding rounds annually, with each round having available approximately $9 million in gap funding. The seventh round began on February 15, 2017.
The eighth round will begin August 15, 2017 as described within the Gap Financing Program statement attached. Having two annual rounds will avoid sponsors having to wait up to a full year for the next funding round to begin, if they missed the previous round. It is anticipated that these funding rounds will be held in February and August of each year. This funding is being made available exclusively for MSHDA’s Tax Exempt – 4% Low Income Housing Tax Credit direct lending transactions.
Please note that the Updated Gap Financing Program includes a new lending process description. You will want to review the updated Exhibit Checklist as well.
Applications for the eighth round are due by the August 15, 2017 funding round deadline. However, please note that market study requests are due by June 30, 2017.
Questions: Any questions about this notice and update may be directed to:
John Hundt
Housing Development Manager
Rental Development Division
Michigan State Housing Development Authority
735 East Michigan Avenue, PO Box 30044
Lansing, Michigan 48909
hundtj1@michigan.gov
517-241-7207 (voice)
