Housing Finance
Overview
The HIT specializes in the development, rehabilitation, or preservation of rental housing, particularly affordable housing. The HIT has a long history of working closely with for-profit and non-profit developers, housing agencies, members of the mortgage banking community, labor unions, HUD, government-sponsored enterprises (GSEs) and others to identify and structure the financing needed for their real estate developments. HIT offers:
- Construction financing
- Permanent financing
- Forward commitments
- Bridge loans
The HIT offers both credit enhanced executions as well as direct construction and bridge lending. HIT structures its financing with credit enhancements provided by a variety of sources, including the Federal Housing Administration (FHA), Ginnie Mae, government-sponsored enterprises such as Fannie Mae and Freddie Mac, and state and local agencies.
Financing Products
- FHA-Insured Construction and Permanent Loans
- State Housing Finance Agency Bonds
- GSE Credit Enhanced Forward Commitments
- Tax Credit Bridge Loans
- Direct Construction Loans (Affordable and Market Rate)
Property Types
AFFORDABLE HOUSING
WORKFORCE HOUSING
AFFORDABLE HOUSING
The HIT specializes in bringing all its available resources to bear to finance affordable housing development and preservation projects around the country. By working with for-profit and non-profit developers, mortgage bankers, state housing finance agencies, GSEs and other investors, HIT’s team brings its expertise and creativity to bear on even the most complicated of structures.
All of HIT’s financing products are available for affordable housing projects.
APPLICABLE FINANCING:
- FHA-Insured Construction and Permanent Loans
- GSE Credit-Enhanced Forward Commitment Permanent Loan Program for Multifamily Housing
- State Housing Finance Agency Programs
- Tax Credit Bridge Loan Program
WORKFORCE HOUSING
Financing of workforce housing is a critical issue for workers across the country and one which often does not see sufficient amounts of dedicated resources to address. The HIT works with a number of localities and states around the country which provide resources specifically dedicated to addressing the needs of working families and can provide technical assistance in putting together these complicated executions.
APPLICABLE FINANCING:
- FHA-Insured Construction and Permanent Loans
- GSE Credit-Enhanced Forward Commitment Permanent Loan Program for Multifamily Housing
- State Housing Finance Agency Programs
- Tax Credit Bridge Loan Program
MIXED-INCOME
MARKET RATE
MIXED-INCOME
The HIT’s financing executions lend themselves well to projects with a mix of income levels. Combining Low Income Housing Tax Credits and other subsidies, the HIT is a nationwide leader on the financing of mixed income housing. The HIT’s creativity as a financing partner can aid project sponsors with bringing together the capital stack in a cost-effective and efficient manner.
APPLICABLE FINANCING:
- FHA-Insured Construction and Permanent Loans
- GSE Credit-Enhanced Forward Commitment Permanent Loan Program for Multifamily Housing
- State Housing Finance Agency Programs
- Tax Credit Bridge Loan Program
MARKET RATE
The HIT’s direct lending and FHA/Ginnie Mae products are available for the financing of market rate housing. While HIT’s investments in market rate housing tend to be focused on smaller metro areas, it will consider investments nationwide based on the qualifications of the borrowing team and the nature of the development.
APPLICABLE FINANCING:
- FHA-Insured Construction and Permanent Loans
- GSE Credit-Enhanced Forward Commitment Permanent Loan Program for Multifamily Housing
- State Housing Finance Agency Programs
- Tax Credit Bridge Loan Program
Union Labor Requirements
All workers on construction sites receiving Trust financing must be contractors and subcontractors who are represented by unions affiliated with the local Building and Construction Trades Council and/or North America’s Building Trades Unions. This requirement applies to any new construction and/or rehabilitation work financed by the Trust and all levels of subcontractors on the project.
The well-paying, family-supporting jobs created by this requirement are an important collateral benefit for the HIT’s investors, generating current wages and benefits for the workforce and increasing contributions to pension and other benefit funds. Union workers add value to HIT-financed projects, assuring that projects are built by highly skilled workers.
LABOR RELATIONS SERVICES
The Trust offers developers, contractors and unions a wide variety of services to ensure the success of Trust financed projects. Some of these services include:
- Contractor Identification Assist in identification of qualified general contractors or construction managers;
- Labor Relations Service Provide in-depth assistance on labor relations issues by working with local Building and Construction Trades Councils and union representatives;
- Pre-Job Meetings Encourage pre-job meetings between unions and contractors to ensure appropriate work assignments and to help isolate potential problems the project manager might encounter;
- Value Engineering Evaluate cost considerations in order to structure projects within budget; and
- Assistance with Local Hiring Requirements Facilitate compliance with local regulations regarding hiring requirements by working closely with contractor and unions and often times coordinating with local pre-apprenticeship programs.