Loan Products

HECA and the Fund provide the following financial products to for-profit and not-for-profit developers who seek financing for qualifying projects:

Short Term / Floating Rate Loan
Term: 36-month maximum
Rate: Floating, utilizes a 30-day LIBOR rate
Size: $500,000 minimum
Amortization: Interest Only, Balloon payment at maturity
Guaranty: Completion Guaranty Only
Loan to Cost: Up to 100%
Long Term / Fixed Rate Loan
Term: 5, 7 or 10 years
Rate: Fixed
Size: $500,000 minimum
Amortization: 20 - 30 years
Guaranty: None
Loan to Cost: Up to 100%
DSC: 1.2x

To facilitate the acquisition and rehabilitation of multifamily assets, HECA and the Fund also provide a mini-permanent facility by combining attributes of the two loan products outlined above.

Mezzanine Debt for Bond / Tax Credit Transactions

HECA offers subordinate or "mezzanine" debt for projects developed or renovated with private activity bonds and the 4% housing tax credit. This gap-filling debt makes many more projects feasible with higher per-unit renovation and cash to pay developer fees. The HECA advance is structured as a taxable loan with flexible payment terms depending on the situation. The tax-exempt debt is backed by credit enhancement and must equal or exceed 50% of the total development costs. The product is priced similarly to first mortgage debt with fee participation. There are no income or rent requirements beyond those applicable to the tax credits.

Please Contact our Loan Underwriter, Censeo, Inc., or HECA directly for more information:

Censeo Inc.
Doug Turner
doug.turner@censeo.com
Two North 20th Street, Suite 1030
Birmingham, AL 35203
Phone: 205-326-6722
Fax: 205-320-1308

Housing Enterprise of Central Alabama
Michele Jenkins-Utomi, CEO
mutomi@housingenterprise.com
1731 First Ave. N., Suite 120
Birmingham, AL 35203
Phone: 205-323-9888
Fax: 203-323-9215


See also: