LIHTC Pilot Program Facilitates Financing for Low-Income Housing Project
An affordable housing community in Tennessee catering to seniors and disabled residents became the first property financed by HUD’s Atlanta office under the new Low-Income Housing Tax Credit (LIHTC) Pilot Program. The site, designed for elderly and disabled renters, is in Marshall County, one of Tennessee’s designated Opportunity Zone census tracts. It’s supported by an allocation of 4 percent Low-Income Housing Tax Credits.
LHP Capital has closed on the financing for the site utilizing the expanded LIHTC Pilot Program. Working with Walker & Dunlop, the affordable housing firm received approval for an $11.6 million Federal Housing Administration (FHA) Section 221(d)(4) loan in just 36 calendar days under the accelerated financing program.
The property is the first financed by the Atlanta HUD office since the LIHTC Pilot Program was expanded to include new construction and substantial rehabilitation projects using Section 221(d)(4) and Section 220 loans earlier this year. The pilot program, which originally focused on aligning the Section 223(f) program with LIHTC financing, aims to reduce the processing time for LIHTC deals, which average about 90 days, by eliminating redundant reviews and streamlining the approval process.