Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced that it is one of a select number of lenders approved to participate in a new housing tax credit pilot program run by the U.S. Department of Housing and Urban Development’s Federal Housing Administration.
The program will test an accelerated approval process for the purchase or refinancing of multifamily rental properties that will undergo moderate rehabilitation and re-syndicate Low-Income Housing Tax Credits (LIHTCs). The program will also finance housing with 90% or more project-based rental assistance in need of moderate rehabilitation. Love Funding will now be able to offer its clients fast-track processing for such loans in the Chicago, Detroit, Boston and Los Angeles hubs. FHA’s Office of Multifamily Housing Programs believes it can reduce the time needed to review and approve applications from about one year to as little as 90 days.
Love Funding became one of the nation’s biggest FHA-only lenders in 2007, when the company exited other commercial financing businesses to focus on developing its expertise in HUD’s multifamily and healthcare financing programs. The company originated, underwrote and closed five transactions totaling $48.1 million over the last three fiscal years that involved LIHTC’s and tax-exempt bonds.
“Love Funding made a commitment to affordable housing years ago and we are proud that HUD has recognized that commitment by making us part of this important program,” said Love Funding President Mark Dellonte. “Being a part of the tax credit program will better enable us to serve our clients’ needs and help them obtain faster financing approvals for these time-sensitive transactions.”
The Housing and Economic Recovery Act of 2008 mandated that FHA streamline mortgage insurance applications for projects with equity from the LIHTC program.
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