CalHFA yesterday announced its new Conduit Issuer Program to promote the preservation and development of affordable housing. The bonds will be available to for-profit and non-profit developers to support acquisition, rehab and new construction. Non-profits will benefit from lower fees. The bond proceeds can be used to pay off an existing CalHFA loan pursuant to CalHFA’s existing loan prepayment policy. According to the Agency’s announcement, the new bonds are “competitively priced compared with other statewide conduit programs.” The program will accommodate structures involving tax-exempt, taxable or 501(c)(3) bonds, and various forms of credit enhancement for bonds sold publicly. The guidelines for the program are available at http://calhfa.ca.gov/multifamily/conduit/ConduitProgramGuidelines.pdf.
The occupancy restrictions will follow the federal LIHTC 20/50, 40/60 standard, provided that under the 40/60 option, at least 10% of the units must be at 50% or less of AMI. CalHFA’s description does not specify the rent restrictions under the required Regulatory Agreement, but implies that they also will follow the LIHTC standards.
In addition to the new Conduit Issuer Program, CalHFA’s multifamily finance programs include the Preservation Loan Program, which uses HUD/FHA Risk Sharing for credit enhancement, and the Multifamily Loan Prepayment Program, which uses new CalHFA bond issues to repay outstanding CalHFA loans subject to meeting CalHFA’s assessment of “public purpose considerations.”