FHA AND USDA KNOWLEDGE AND EXPERIENCE
Bridge to FHA and USDA 538 for Affordable Housing Acquisition/Preservation
Rose Community Capital and IMPACT Community Capital have partnered to create the RCC-IMPACT Capital Acquisition Fund (the “Fund”). The mission of the Fund is to create and preserve affordable and rental assisted housing throughout the country by making available access to affordable bridge financing for projects that have as their permanent financing an FHA insured or USDA guaranteed loan made available by Rose Community Capital (RCC).
Affordable projects are those that have a Use/Regulatory Agreement that restricts 50% or more of the project’s rents and has a Use or Regulatory Agreement that restricts affordability to 80% AMI or lower. A project may qualify for financing if the owner intends to restrict the units and files a Use Agreement as part of the closing.
FHA Insured Acquisition or Refinance
Rose Community Capital is a HUD approved Multifamily Accelerated Processing (MAP) lender and can arrange for FHA insured project acquisition or refinance of projects under Section 223(f) of the National Housing Act. MAP acquisition/refinance underwriting is subject to the type of loan; i.e. market rate or affordable LIHTC and/or HUD rental assisted projects.
FHA Insured New Construction / SubRehab
Rose Community Capital (RCC) is a HUD approved Multifamily Accelerated Processing (MAP) lender and can arrange for FHA insured new construction/sub rehab financing under Section 221(d)(4) of the National Housing Act. MAP new construction/sub rehab underwriting is subject to the type of loan; i.e. market rate vs affordable LIHTC/rental assisted projects.
Key Notes: HUD has more favorable loan terms for rental assisted and affordable housing projects. Affordable projects are those that have a Use Agreement that restricts the projects rents and occupancy to income qualifying residents. To be considered a rental assisted property, the property must benefit from a project based rental assistance contract that covers 90% of the units or more. To be considered an affordable project, the Regulatory/Use Agreement must have at least 15 remaining years of restriction post-endorsement of the HUD note and meet at least the minimum Low Income Housing Tax Credit (LIHTC) restrictions of 20% of the units affordable at 50% of Area Median Income (AMI), or 40% of the units affordable at 60% of AMI, with tenant paid rents on those units no greater than LIHTC rents. Mixed Income properties qualify as affordable if the funding restrictions provide a Regulatory/Use Agreement and unit rent and occupancy restrictions meet the LIHTC criteria.
USDA 538 Acquisition-Rehab / New Construction Financing
Rose Community Capital (RCC) is a USDA 538 loan program lender. The USDA Rural Rental Housing Program is designed to increase the supply of affordable housing in rural areas. The program provides a AAA rated US Government backed guarantee/credit enhancement to encourage construction and preservation of affordable rental rural housing. Eligible projects will be located in a community that the Agency has determined meets the rural definition.
Rose Community Capital has closed affordable housing loans totaling approximately $600 million.