April 7, 2022 — Boston Capital Finance (BCF) is pleased to announce the launch of the Boston Capital Long Term Mortgage Forward 9% Taxable Fund. This Fund will target new construction and substantially renovated LIHTC taxable loans.
“There is a real need for a non-agency, forward-delayed 9% mortgage product in the market,” said Bill Fazzano, Director of Asset Management and Underwriting. Don Phelan, Director and special consultant to Boston Capital Finance, added “The timing to come to market now with a 40-year amortizing, private placement 9% forward fund made a lot of sense.”
This Fund will target 9% affordable LIHTC developments by providing forward delayed 40-year amortizing loans. BC Finance will originate, underwrite and service the loans.
Loan specifics are:
Permanent Mortgage Loans
- Loan amounts of approximately $3,000,000 to $15,000,000 per property;
- Loan term of approximately 16 years;
- Amortization of 40 years;
- First priority mortgage and a first security interest in all personal property;
- Borrower will be an SPE, prohibited from engaging in any business activity other than the development, construction and operation of the subject property;
- Non-recourse with the exception of customary carve-outs for fraud, intentional failure to fund and other “bad acts”;
- Maximum initial loan-to-value of 90% (based on property value at restricted rents);
- Minimum initial debt service coverage ratio of 1.15;
“BCF is a major national 4% tax-exempt affordable construction to permanent lender. We are very happy to now be able to provide borrowers a very competitive non-agency forward loan product while expanding our debt platform to meet more of our borrower needs.” said Sean Curry, Director of Investments and Originations.
Boston Capital Finance
BCF is owned and operated by Jack Manning, Kevin Costello, Bill Fazzano and Sean Curry. Founded in 1994 the firm currently provides both construction and permanent financing on properties that have or will obtain low-income housing tax credits. BCF was listed on the top 25 affordable lender list for 2021 per Affordable Housing Finance. BCF has closed over $2.8 billion of affordable bonds and loans and is a full service boutique mortgage firm.
Have an affordable forward- delayed taxable loan that needs to be financed? Please call: