CalHFA to Provide Lower Rates for Multifamily Developers

The California Housing Finance Agency has forged partnerships with two federal agencies to provide lower interest rates to multifamily developers as a way to encourage more affordable housing.

CalHFA reached agreements with both the Department of Housing and Urban Development and the Treasury Department to gain access to capital at lower rates than what's available in current markets. The Treasury Department will participate through the Federal Financing Bank.

The program will provide financing at rates 2% to 2.75% higher than the 10-year Treasury, for terms of up to 40 years. The minimum debt coverage ratio is 1.15 times, the Sacramento-based agency said.

CalHFA's program will be available to for-profit, nonprofit and public agencies to refinance affordable housing developments, complete minor rehabilitation of properties and take out equity in cash.