In November 2018, the Maryland Department of Housing and Community Development (DHCD) issued Multifamily Notice 18-14 requesting public comment regarding whether or not DHCD should continue to offer the “Taxable/Tax-Exempt Financing” technique.
After reviewing public comments, DHCD has decided to retain the Taxable/Tax-Exempt Financing technique on a limited basis; specifically, this technique will only be available for projects that do not rely on subordinate financing from DHCD through Rental Housing Works and other subordinate financing programs of DHCD. Please note that all other approved Multifamily Bond executions are eligible for DHCD subordinate financing.
Additionally, DHCD will retain the option to fully reinstate the Taxable/Tax-Exempt Financing technique in the event that the interest rate environment changes in such a way where taxable interest rates are significantly and consistently below tax-exempt interest rates.
This modification is effective as of the April 1, 2019 for new applications for financing. DHCD will continue to process applications that are currently in the DHCD pipeline that propose the Taxable/Tax-Exempt financing technique with subordinate DHCD financing.
In an effort to more effectively communicate the wide range of financing structures (including HUD, Freddie Mac, Fannie Mae, and FHA Risk Sharing) available through the Multifamily Bond Program, DHCD has updated its website. The updated website outlines currently available financing structures, as well as indicative interest rates, fees and costs in a summary format. The website will be updated on a regular basis so that our partners have a clear sense of their options and changes in the financing environment.
If you have any questions please contact John Maneval, Community Development Administration Deputy Director at Maryland DCHD, at john.maneval@maryland.gov or 301-429-7714.
