On Valentine’s Day, our thoughts turn to commitment, and we’d like to take this opportunity to talk about ours. At Love Funding, we are starting out 2015 by making changes to improve the level of service and products we can offer our existing and new clients. We were recently acquired by Midland States Bank, allowing us to expand our lending capabilities, bring our servicing group in-house and serve as a one stop shop for the very best in FHA financing solutions. We’ve also been busy expanding our originations, underwriting, closing and asset management groups to provide our customers with dedicated, personalized attention through every stage of the finance process. At Love Funding, we deeply value our client relationships and look forward to demonstrating our continued commitment in 2015.
RAD PROGRAM UPDATES
Increased Unit Cap for 2015
The HUD Rental Assistance Demonstration (RAD) program is entering its second major phase with a full head of steam. The program’s initial cap of 60,000 units has tripled and now sits at 185,000. What’s more, the proposed 2015-16 federal budget would impose no limit at all on the program going forward.
The rising popularity of the program speaks to its effectiveness as a means of converting the public housing stock of this country to private ownership. The driver is the program’s design: Allowing existing subsidies the projects are receiving through housing authority budgets to be transferred to direct rent payments. This enables private investors to take part in recapitalizing and modernizing the rental housing inventory by partnering with PHAs. They can finance the improvements with market rate debt, Low Income Housing Tax Credits (LIHTC), and/or other state or local subsidies when they are made available. Continue Reading
Groundbreaking for Central Park Towers
Love Funding is proud to be deeply involved with the RAD program, with several transactions now behind us and more headed to the closing table. One of our recent deals – Central Park Towers in Elgin, Illinois – was particularly transformative. The financing enabled the Housing Authority of Elgin to both substantially renovate the project’s existing 11-story building and construct a new six-story structure on an adjacent lot. The total budget was over $33 million, which included a $6.7 million HUD 221(d)(4) mortgage. Continue Reading
BRIDGE TO HUD
Expanded Bridge Loan Capabilities
One of Love Funding’s most important initiatives for 2015 is to expand our bridge lending capabilities for our customers. We will continue to offer specialized, short-term bridge financing off of our balance sheet for transactions that have received HUD approval but need a quicker than normal closing. Love Funding has also begun to leverage the balance sheet of our new parent company, Midland States Bank. Through Midland States Bank, Love Funding is able to provide bank quality credits with short-term bridge to HUD financing and construction financing with a HUD take-out. Plus, stay tuned for our expanded bridge to HUD capabilities through our proprietary bridge program, including tax credit bridge financing for affordable housing.
Click here to view more of our quarterly newsletter.