MSHDA has reinstated its short-term pass-through bond program for one year with a $30 million allocation. This program historically serves credit-enhanced projects that are refinanced within 36 months of bond issuance, usually with an FHA insured Ginnie Mae mortgage. The program is available to new construction as well as acquisition and substantial rehabilitation residential rental projects.
For rehabilitation projects, rehab expenditures must equal or exceed 30% of acquisition costs financed with the proceeds of the bonds. Projects in eligible distressed areas may have a threshold lower than 30% on a per-case determination basis by MSHDA.
Income restriction requirements follow the LIHTC 40/60 or 20/50 set-aside options.
Full program requirements are available online.
