The DC Housing Finance Agency (DCHFA) offers developers several opportunities to finance affordable multifamily rental housing projects through its McKinney Act Loan Program and Housing Investment Platform (HIP). These programs are designed to support the creation and preservation of affordable housing, specifically benefiting developers focusing on low-income and workforce housing.
The McKinney Act Loan Program provides early-stage, flexible capital to developers, particularly for predevelopment costs, which can often be a barrier to starting affordable housing projects. Loans from the McKinney Act Fund can be used for soft costs, such as architectural plans and environmental assessments, crucial in the planning phase of developments. This can greatly benefit developers by helping them meet application requirements for larger funding opportunities, like the Department of Housing and Community Development’s requests for proposals (RFPs). The loan terms are flexible, typically two years, giving developers enough time to secure additional funding and advance their projects. More details and information on how to apply can be found here.
Housing Investment Platform (HIP) provides equity investment for affordable housing projects, which can significantly reduce the upfront capital developers need to contribute. HIP focuses on supporting both rental and for-sale housing, targeting workforce housing for individuals earning up to 120 percent of the area median income. This platform helps developers by offering joint venture capital, thus enabling them to undertake larger projects with less financial strain. By restricting the sales or rents to affordable levels, developers can benefit from the investment without taking on excessive financial risks.
These programs provide developers with crucial financial resources to address both the planning and construction phases of affordable housing, ensuring that more projects can move forward in a timely manner. Developers who tap into these resources can advance their projects while addressing the significant need for affordable housing in Washington, DC.
