Main Spring Real Estate Services has extensive experience developing finance solutions for affordable housing projects throughout the United States, including:

• 202 Programs
• 236 Loans
• 9% & 4% Tax Credits
• New Market Tax Credits
• Tax Exempt Bond Financing

Often times, we need to meld subordinated loans or grants with the programs to fill critical equity gaps. Our direct HUD programs can be used to fund capital improvements, replacement reserves and to add supportive services. In addition we have extensive experience repositioning 236 properties that may need to be decoupled and/or maturing through either the Markup to Market or Markup to Budget programs.

HUD defines Affordable Housing as:

• projects that have a recorded regulatory agreement in effect for at least 15 years after final endorsement; or
• projects that meet at least the minimum LIHTC restrictions of 20% of units at 50% of the Area Median Income (AMI), or 40% with economic rents (portion paid by tenants) on those units no greater than LIHTC rents; or
• Mixed income projects if the minimum low income unit rent and occupancy restrictions and regulatory agreement meet above criteria.

In addition, we have structured and funded many 202 loans, and the benefits include:

• Very Low Interest Rates
• 35 Year Fixed Rate Term
• Non-recourse
• 15% Developers Fee
• Cash Out to Fund Capital Improvements

There are many legal and financial issues that need to be addressed when evaluating a 202 or 236 loan request. Our principals work closely with the client, their management company and board of directors to clearly explain the loan process.