HOME – New Construction & Acquisition/Rehabilitation

For profit and non-profit Developers, CHDO’s, and Cities/Counties

• Applicants requesting $100,000 to $2,000,000 will sign a note that will bear interest at one percent (1%), with level amortization and monthly payments over (at the borrower’s election) (a) 20 years, or (b) the development’s LIHTC affordability period (30 or 35 years), in either case with the first payment deferred for one (1) year after the placed-in-service date.
• Applicants requesting $2,000,000 to $3,000,000 will sign a note that will bear interest at two percent (2%), with level amortization and monthly payments over (at the borrower’s election) (a) 20 years, or (b) the development’s LIHTC affordability period (30 or 35 years), in either case with the first payment deferred for one (1) year after the placed-in-service date.
• Any HOME Loan that exceeds $2,000,000, requires that ADFA be in a first position

Per Unit Subsidy Limits
ADFA has set per unit subsidy limits for HOME as follows: 0 BR- $159,500, 1 BR- $181,500, 2 BR- $198,000, 3 BR- $220,000, and 4 BR- $247,500.

Debt Coverage Ratio
Applications must have a minimum debt coverage ratio of 1.15 including the debt service on the HOME loan and cannot exceed 1.40.

Match
Match is the local contribution to affordable housing that is required of all applicants participating in the HOME program.
A 25% match is required when applying for HOME funds.