MULTIFAMILY HOUSING BONDS
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Post Bond Issuance Guide
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Bond Issuance Guide
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Tax-Exempt Bonds:
Nonprofit Ownership
Nonprofit Housing Financed with Bonds (PDF)
Nonprofit Housing Lenders (PDF)
Eligible Organizations
Organizations with a 501(c)(3) determination letter from the IRS
Eligible Activities
Nonprofit organizations can use tax-exempt bonds to finance housing that is directly related to their mission, including:
Construction and rehabilitation of buildings
Purchase of land and buildings
Refinancing of existing capital debt
Pre-Development costs, such as architectural, engineering, accounting, legal costs directly related to project
Low-Income Housing Tax Credits cannot be used with this type of bond.
Eligible Facilities and Equipment
The full range of living options provided by nonprofit organizations can be financed:
Independent living units (apartments)
Assisted living units
Group homes
Transitional housing
Single room occupancy units
Emergency shelters
Residential facilities for the homeless
Limited equity cooperatives (restrictions apply)
Nursing homes
CCRCs (continuing care retirement communities)
Housing for special-needs populations
Financing Large and Small Loans with STEP or Public Bond Sales
Smaller projects generally use the Streamlined Tax-Exempt Placement (STEP) Program. It uses standardized documents to save time and costs. The lender makes the credit decisions. The lender earns tax-exempt interest from the bond and passes the savings on to the borrower.
Larger projects, when borrowing typically exceeds $5 million, investment banks sell the bonds publicly to retail and institutional investors.
Application
Nonprofit Housing Program Application
10/07/2008