March 14, 2024 —
The Boston Capital Long Term Mortgage Fund VI is pleased to announce the newest feature to our proprietary forward delayed 9% LIHTC taxable loan program. This Fund targets 9% affordable LIHTC developments by providing forward delayed 40-year amortizing loans. BC Finance originates, underwrites, and services the loans.
Permanent Mortgage Loans
* Forward delays up to 36 months;
* Loan amounts of approximately $3,000,000 to $20,000,000 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
Newest Re-Rate Lock Feature
Transactions will continue to be forward rate locked off the 10 Year Treasury at or prior to construction loan closing. If the 10 Year is trading lower when the property stabilizes, developers will have a one-time option to re-rate lock using the same spread as earlier agreed but using the lower benchmark. The re-rate lock option will be capped at 100 basis points based off where the transaction was locked at originally.
“There continues to be a real need for a non-agency, forward-delayed 9% mortgage product in the market,” said Bill Fazzano, Director of Underwriting and Asset Management. Sean Curry, Director of Originations, and Investments added “the timing to come to market now with a re-rate lock at stabilization option made a lot of sense and allows us to continue to offer best in class executions and terms to our developers”.
Boston Capital Finance
BCF was founded in 1994 as a wholly owned subsidiary of Boston Capital Corporation and provides construction-to-permanent financing on properties that have or will obtain low-income housing tax credits. BCF owned and managed by Jack Manning, Kevin Costello, Bill Fazzano and Sean Curry has closed over $3.8 billion of affordable bonds and loans.
Have an affordable tax-exempt bond or taxable permanent loan that needs to be financed? Please call:
Sean Curry, Partner, Originations, and Investments, 781-526-4319 scurry@bostoncapital.com<mailto:scurry@bostoncapital.com>
Walter Williams, Originations, 617-694-5182 wwilliams@bostoncapital.com<mailto:wwilliams@bostoncapital.com>
Don Phelan, Originations, 860-614-8650 dphelan@bostoncapital.com<mailto:dphelan@bostoncapital.com>
Bill Fazzano, Partner, Underwriting and Asset Management 617-331-4098, bfazzano@bostoncapital.com<mailto:bfazzano@bostoncapital.com>
Kevin MacDougall, AVP Underwriting 978-914-0631, kmacdougall@bostoncapital.com<mailto:kmacdougall@bostoncapital.com>