Multifamily Financing - Idaho Housing and Finance Association

Idaho Housing’s multifamily finance department has the lending expertise to offer affordable housing developers a full array of financing alternatives. From Low-Income Housing Tax Credits, which offer incentive to developers to build affordable rental housing, to a combination construction/permanent loan, a separate permanent loan through a consortium of banks, or subordinate financing, Idaho Housing’s staff has the expertise to finance affordable multifamily developments throughout Idaho.

Low Income Housing Tax Credits (LIHTC)

The Low-Income Housing Tax Credit, established under the 1986 Tax Reform Act, provides an incentive to developers for affordable rental housing. The credit provides a dollar-for-dollar federal tax liability reduction for owners of newly constructed or substantially rehabilitated rental housing. Section 42 of the Internal Revenue Code and related regulations govern the Housing Tax Credit and establish compliance requirements, including qualified tenants income levels and maximum program rental rates.

As Idaho’s designated Housing Tax Credit administrator, Idaho Housing receives an annual Housing Tax Credit authority on behalf of the state. This annual credit authority is allocated through a competitive application process according to the Qualified Allocation Plan. Recipients of Housing Tax Credit allocations may claim the annual credit each year for 10 years.

A development’s annual Housing Tax Credit eligibility is based upon depreciable real property costs applicable to the units designated for low-income tenants. The amount of credit allocated to a development is based upon either the lesser of credit eligibility, the amount necessary to fill the funding gap or the amount necessary to generate a reasonable return to the investor.

Notice of Funding Availability

LIHTC Qualified Allocation Plan

LIHTC Allocation List

LIHTC Applications Received

2021 Applications Received

LIHTC/HOME/HTF Application

LIHTC Certifications and Forms

Additional Resources

Resource Documents

LIHTC Income and Rent Limits

LIHTC Income and Rent Limits – Novogradac Rent & Income Calculator

Difficult to Develop/Qualified Census Tract

Obtain HUD’s Difficult Development Areas and Qualified Census Tracts
Look up a specific census tract by physical address

Links To Website Resource

Financing Options

Construction/Permanent Loan

IHFA offers construction loans with very competitive rates and fees. In addition, terms of up to 18 months with a 6 month extension upon IHFA approval are available. We have years of construction lending experience and take pride in our lending flexibility and quick turnaround of draw requests.

Please click on the link below for detailed information.

Construction Loan Financing Term Sheet

Permanent Loan – Idaho Community Reinvestment Corporation (ICRC 501(c)(3)

The Idaho Community Reinvestment Corporation (ICRC) is a nonprofit mortgage-banking consortium formed in 1993 by 10 Idaho financial institutions. The nonprofit 501(c)(3) organization has a $22 million revolving loan pool to provide permanent financing for the development of affordable housing throughout Idaho.

The ICRC, in partnership with the Idaho Housing and Finance Association, pursues a common goal of providing multifamily housing to low- to moderate-income Idaho families. In this partnership, the ICRC provides the capital and IHFA provides the affordable housing “knowledge.” As an agent for the ICRC, IHFA underwrites loan proposals and presents these as credit recommendations to the ICRC Loan Committee.

Funding decisions are approved by the Loan Committee, which is comprised of real estate professionals from the member institutions. IHFA provides technical assistance to the ICRC and affordable housing developers based on its extensive experience in finance, real estate financing of resources, potential equity sources and affordable housing. The benefits from this IHFA/ICRC partnership include the maximum use of scarce housing resources and better service to developers by providing a “one-stop shop” for affordable housing sponsors.

Information and Brochures

ICRC Fact Sheet

IHFA Risk Share Permanent Loan

IHFA offers a permanent loan utilizing the Risk Share program with a minimum loan amount of $1,500,000.

Subordinate Financing

IHFA can also assist affordable housing sponsors in obtaining subordinate financing for their project. During construction, subordinate financing typically covers the difference, or equity gap, between the cost of construction and the amount of the construction loan. After construction, the loan is in a subordinate position to the senior permanent lender. Learn more about subordinate financing by clicking on HOME Program.