The Metropolitan Development and Housing Agency (MDHA) is making $23,750,000 available in subordinate financing for an Affordable Housing Gap Financing (AHGF) program. Qualified for-profit and non-profit developers with “shovel-ready” projects already approved for financing or those that can’t complete construction due to a financing gap related to increased costs and/or supply chain disruptions are encouraged to apply.
The AHGF program is a loan fund dedicated to the creation of much needed, deeply affordable rental units to house individuals with incomes at or below 30% of the area median income (AMI) and units to provide permanent supportive housing (PSH) for persons experiencing homelessness in Davidson County. To receive AHGF funds, developers will be required to commit to reserving a minimum of 2% of units in the project for households at or below 30% AMI and an additional 2% of units in the project for PSH. All set aside units will have affordability periods ranging from 20 to 35 years requiring that they be offered for lease to the designated individuals and families. All tenants will be selected for occupancy through the Coordinated Entry (CE) process managed by the Metro Homeless Impact Division (MHID). MHID will also allocate the appropriate level of case management and PSH subsidy to be matched with each individual or family’s unit.
AHGF funds will be a subordinate loan to the project with an interest rate and repayment terms negotiated based on the project’s needs, population being served and projected surplus cash flow. The amount and terms of the AHGF loan will be based on the amount needed to fill the financing gap and the number of units to be reserved for lease to the intended population. There will be a per-unit subsidy limit that is not to be exceeded. Repayment of AHGF loans will be secured by a deed of trust and occupancy requirements enforced via a deed restriction on the property. MDHA will monitor projects annually throughout the affordability period to ensure compliance.
Interested in Applying?
All applications must be created and submitted electronically via the ZoomGrants system no later than 11:59 p.m. PST Friday, Dec. 16, 2022. Click below to access the request for applications (RFA).
Want More Information?
A pre-application meeting will be held at 10 a.m. CST Tuesday, Nov. 29, 2022, via Zoom. Information regarding the Zoom conference can also be accessed in Section 9.3 of the RFA.
The criteria for evaluating the applications will be based on the items set forth in the RFA. Awards will be made to the most responsive and responsible applications, which in the judgement of MDHA best meet the current needs and long-term goals of MDHA and the AHGF program. MDHA reserves the right to reject any application and/or waive any informalities in the solicitation process. To request accommodation, please contact MDHA Community Development Senior Compliance Specialist Conor O’Neil.