Loudoun supervisors consider updates to multi-family affordable housing loans
Members of the Supervisory Board’s Finance Committee provided the Supervisory Board with updates on the county’s Affordable Multi-Family Housing Loan Program, which helps developers finance apartment buildings below market rent, on Tuesday. .
The changes could mean county taxpayer dollars go further into these projects.
The program is relatively new, first approved in July 2018 and revised a year later. During that time, he funded seven loans, growing a portfolio of over $25 million in existing loans, funded by the county’s Housing Trust Fund.
This is one of many programs that affordable housing developers use to bring together funding for these projects, also including federal and state tax credits and grants. Among the proposed changes is increasing the leverage ratio from 1:3 to 1:5, meaning that for every dollar in county funding, the developer must show $5 in contributions from other sources.
County funding can also unlock other sources of funding – for example, according to a staff report to the finance committee, showing a commitment to local funding can help a developer score higher on their application for government credits. federal taxes for low income housing.
A proposed review of county loans would provide more opportunities for developers to apply each year, seeking to match more frequent openings of low-income housing tax credits, Virginia housing bonds or l ‘Economic Development Authority. This could give developers a better chance of getting their financial package together at the right time, and could also increase the number of developers applying for these loans, according to county staff.
Another review could encourage developers to plan more extremely low-income units and include free high-speed internet and other amenities. The “extremely low income” units serve families earning 30% or less of the region’s median income, currently $29,950 for an individual and $42,700 for a family of four. Developers would see their loan applications rated higher for including these features.
And another would give developers more flexibility on the value of the property, in the face of a real estate market that continues to tighten.
The county’s Housing Trust Fund currently has a balance of $18.3 million.