HOMEspacerSITE MAPspacerSEARCHspacerCONTACT   

Washington State Housing Finance Commission
AdministrationspacerHome BuyersspacerMultifamily Housing & Community FacilitiesspacerAsset Management & CompliancespacerInvestors

Multifamily Housing Bonds
bullet Overview
bullet For-Profit Ownership
bullet Nonprofit Ownership
Applications:
bullet Multifamily Housing
bullet Nonprofit Housing
------------
bullet Our Projects
bullet Lenders/ Finance Team
bullet Resources
bullet Senior Housing
bullet Contact Us

Nonprofit HousingMultifamily HousingMultifamily Housing Bonds – Overview

The Washington State Housing Finance Commission issues both tax-exempt and taxable bonds to provide below market-rate financing to nonprofit developers and to for-profit developers who set aside a certain percentage of their units for low income individuals and/or families.

TAX-EXEMPT BONDS

Tax-exempt bonds, also known as private activity bonds, are bonds where the interest earned by the bondholder(s) is exempt from federal taxation. Because the interest is tax-exempt, the debt has lower interest rates than traditional financing. The interest rate depends on the characteristics of the project and the rating of the bonds. The Commission issues two types of bonds: Multifamily Bonds and 501(c)(3) Bonds.

TAX-EXEMPT MULTIFAMILY BONDS

Multifamily bonds are subject to annual volume limits (“Bond Cap”) based on the state’s population. In 2006, the Commission allocated nearly $203 million in Bond Cap to multifamily housing projects across the state. Projects financed with Multifamily Bonds must have 5 units or more, be complete with kitchens and bathrooms, and have some units set aside as low-income units. More...

LOW-INCOME HOUSING TAX CREDITS COMBINED WITH TAX-EXEMPT MULTIFAMILY BONDS

If more than 50% of a project is financed with tax-exempt Multifamily Bonds, the project may access the 4% Low Income Housing Tax Credit without competing for an allocation of LIHTCs.  This program allows developers to combine low interest rates on long term debt with a substantial equity contribution from an allocation of LIHTCs. Nonprofit developers can take advantage of the benefits of LIHTCs by forming a partnership with a for-profit tax credit investor.   More...

TAX-EXEMPT 501(c)(3) BONDS

Nonprofit 501(c)(3) bonds can be used to finance housing projects wholly owned by a 501(c)(3) organization, as long as the project fits within the charitable purpose of the organization.  In 2006, the Commission issued nearly $257 million in nonprofit housing bonds.  These bonds are not subject to annual Bond Cap limitations and cannot be combined with the LIHTCs.  However, nonprofit 501(c)(3) bonds are less restrictive regarding the types of units allowed – individual units are not required to have complete kitchens or bathrooms, and there are generally no income restrictions placed upon the project.   More...

PROGRAMS

  • Tax-Exempt Bonds for Multifamily Housing
  • 4% Tax Credits with Tax-Exempt Bonds
  • 501(c)(3) Bonds for Housing

05/04/2007

Washington State Housing Finance Commission | 1000 2nd Ave | Seattle, WA 98104
206.464.7139 | 800.767.4663 | WebMaster@wshfc.org
© 1998-2011 All Rights Reserved
      Washington State Housing Finance Commission — Home Page

ADMINISTRATION
Careers
Commissioners
Housing Washington
Meetings & Events
My View ED Newsletter
Publications

HOMEOWNERSHIP
Home Buyer Programs
Information for Lending & Real Estate Professionals

BOND FINANCING
Energy Programs
Farmer & Rancher
Multifamily Housing
Nonprofit Facilities
Washington Works 

LOW-INCOME HOUSING TAX CREDIT (LIHTC)
LIHTC
ARRA
Special Programs
Land Acquisition
Rapid Response

ASSET MANAGEMENT & COMPLIANCE
Compliance

INVESTORS
Official Statements & Annual Reports

 

  

© 2012 Washington State Housing Finance Commission