MAHDF
Mississippi Affordable Housing Development Fund

The Mississippi Affordable Housing Development Fund (Revolving Loan Fund) was established by the State of Mississippi to help finance housing for low to moderate income households.

Eligible Borrowers:
Nonprofit Corporations, Partnerships, For-Profit Corporations, Public Housing Authorities, Planning and Development Districts, and Limited Equity Cooperatives. Individuals are not eligible.

Use of Funds:
Construction loans for new owner-occupied or rental housing.
Pre-development, site control, site development.
Rehabilitation loans for owner-occupied and rental properties.

Program Priorities:

  • Project that address elderly housing
  • Projects involving combination of nonprofit organizations with for profit partners and investors.
  • Projects that empower low-to-moderate income families through resident management, self-help housing, self-sufficiency activities designed to increase household incomes, or similar programs meeting critical housing needs.
  • Projects designed to access FNMA, FHLMC , or other secondary mortgage markets and requiring commitments of funds from the RLF for 7 years or less.

MAHDF Development Construction Sign Specifications and Corporate Logo

Loan Terms:
Rate: Rates as low as 3.0%.
Term: Development 3 years
Acquisition/Rehab 7 years
New Construction 7 years
Amortization: Negotiable. Can include loans that are fully or partially amortized. Balloon, interest only, or deferred interest with balloon will be considered. A letter of credit may be required.
Loan to Value: For-profit 80%, Non-profit 90%( in some cases 95%), using the lesser of the sales or appraised value of the asset being considered.
Debt Service Coverage: (for rental projects) Minimum debt service coverage of 1.05:1.00
Security: 1st Lien Position only.
Prepayment: Loans may be prepaid at any time, with no prepayment penalties.
Assumability: Assumable upon approval of MHC.

Loan Size:
For projects meeting the following criteria:

a. Rental projects targeted to families earning 60% or less of area median gross income or owner occupied projects targeted to families earning 115% or less of area median gross income.

b. Rents or mortgage payment, less utilities, no more than 30% of annual household income.

c. The purpose of the RLF is to provide affordable housing to low-to-moderate income households. MHC requires its borrowers to ensure long-term affordability through the use of Land Use Restrictive Agreements (LURA). MHC may require property to be restricted for at least 15 years and in some cases, longer.

d. Priority funding is given to projects that are located in targeted counties or census tracts under the Mortgage Revenue Bond Program or in areas identified as "Difficult to Develop, Qualified Census Tracts, or Area of Chronic Economic Distress" under the Housing Tax Credit Program.

Maximum Loan Amount:
$500,000 (large developments may be phased )

Reserves:
Borrowers for rental developments will be expected to fund a replacement reserve at a minimum rate of 3% of gross potential income and an operating reserve at 2% of gross potential income. Higher reserves are preferred and may be required.

Fees:
Application Fee: $350.00
Commitment Fee: 1% of loan amount ($500 minimum)
Inspection Fees: $75 charge for each inspection beginning with the 4th.

Applications
Applicants may request a loan from the Revolving Loan Fund(RLF) by submitting a loan proposal in narrative form using either of the formats below. Application diskettes are also available and may be obtained from the office of the Mississippi Home Corporation.

Excel Format

PDF Format

For more information contact Bradley Joyner or Charlotte Baker