New Development/ Re-Development Financing Program

Loans are available to private and/or public entities. Applicants must have sufficient experience and/or demonstrate sufficient, training in housing development, and management to successfully secure financing, construct, complete, and operate the proposed project. All LHTF housing projects shall be undertaken and completed by the developer (LHTF applicant). Applicants without the necessary experience must enter into joint venture agreements with experienced developers.

Projects proposed as a Join Venture shall comply with the following: if the developer is a joint venture, the LHTF application or project will be assessed based on the experience of the "lead developer". The "Lead Developer" is the entity that has the majority interest in the joint venture or partnership. In all joint ventures, a majority control must be held by the development entity meeting the Swift County approval. The LHTF committee will review and approve all joint venture agreements and decide which joint venture partner has the majority control in the management and operating of the joint venture.

For projects proposed as limited partnerships, the LHTF committee reserves the right to approve the limited partnership agreement prior to any LHTF loan award.

Development projects that create and/or preserve affordable housing units are eligible to receive funding. The residential portions of mixed-use and live/work projects that meet the affordability requirements of these guidelines shall be eligible for assistance. Funding may also be provided to assist in the creation of common areas, meeting space, and other space primarily for use by the residents of the assisted units, such as rooms to provide onside medical or counseling services.

Activities eligible for funding include new construction, acquisition of property, conversion of non-residential to residential use, and redevelopment costs. All reasonable costs associated with new construction or redevelopment of eligible housing projects are eligible for funding.

Rental Housing Developments:

All applicants for funding must meet the minimum requirements below. Applicants may propose to produce units with lower income or affordability ranges than prescribed herein. The Swift County HRA encourages projects that address chronic homelessness and/or housing for extremely low-income households, or households whose incomes does not exceed 30% AMI.

All LHTF- assisted rental units shall be occupied by households with incomes at or below the targeted income category, unless compliance with the federal, state, or local laws requires otherwise. For the purpose of setting rent, "affordable" shall be defined as rent and utilities that are no greater than 30% of gross income for a household.

Priority will be given to the project with the greatest percentage of affordable units. At least 60% of all units in an eligible housing project must have rents as follows:

Affordable to households whose income does not exceed 115% of Area Median Income (AMI)
Not less than 20% of the affordable units must be affordable to households whose income does not exceed 80% of AMI (Rents on the remaining 40% of the units may be set at market rate)

Affordability Term - Regulatory Period:

All newly constructed or converted affordable rental housing units assisted through the LHTF shall be affordable for a period of not less than 20 years from the date of project completion. Property owner will report by April 30th of each year.

Homeownership Housing Developments:

Sale prices of affordable units must be set at a price affordable to households with incomes at 115% of AMI. For the purpose of setting a sale price, "affordable" shall be defined as housing costs including mortgage payments, property taxes, insurance, and Homeowner's Association dues (if applicable) that are no greater than 30% of gross income for a household at 115% of AMI

All LHTF-assisted homeownership units shall be sold to households with incomes at or below the targeted income category (at or below 115% of AMI) who agree to occupy the unit as their principal place of residence.

Developers are encouraged to offer priority to first time homebuyers for affordable homeownership units.

LHTF Income Limits

HH Size	50%	80%	100%	110%
1	$28,250	$45,190	$56,490	$64,960
2	$32,280	$51,650	$64,560	$74,240
3	$36,320	$58,100	$72,630	$83,530
4	$40,350	$64,560	$80,700	$92,810
5	$43,580	$69,730	$87,160	$100,230
6	$46,810	$74,890	$93,610	$107,650
7	$50,030	$80,050	$100,070	$115,080
8	$53,260	$85,220	$160,520	$122,500

Loan Terms

Construction and permanent financing will generally be provided in the form of a single development loan agreement if the project site has been acquired. This is a 20-year loan term with 0% interest and a deferred lump sum repayment of principal. This means that the borrower will not need to make monthly payments on this loan. If affordability is maintained throughout the 20-year term the lump sum repayment will be reduced to 50% of the original principal amount. However, this loan will become immediately due and payable, in full, if affordability is not maintained or, if, at any time during the 20-year term, the property is sold or otherwise transferred for any reason or the primary mortgage is refinanced and the equity taken out. Funding shall be no more than 50% of the project's total development cost. Borrower is required to sign a Note, Mortgage, and Loan Agreement in order to receive a development loan. Grant funding is subject to HRA Board approval.