Housing Opportunity Bond Financing (CHDO Set-A-Aside)

Community Housing Development Organizations (CHDO) requirements:

  • CHDO must have been designated by the City of Atlanta as of January 1 of the year in which the loan application is submitted.
  • Funds may not exceed 50% of total capital expenditures (excluding fees paid to CHDO or its Affiliates)
  • Funds used to finance the acquisition, construction or renovation of the project
  • CHDO must act as owner, developer or sponsor of the project
  • CHDO must have a 25% profit interest in the development to be a sponsor
  • All affordable units must be comparable in size and quality to market rate units within the same development
  • Funds must be leveraged with conventional, bond or other private or public financing including grants. Leveraged funds must be evidenced through firm commitment from other sources.  Funding is subject to availability.

Eligible Developments:

  • New Construction or Acquisition and Rehabilitation
  • Conversion of an existing property not being used for housing
  • May be used for rental or homeownership development
  • Serve a population at or below 100% of AMI for families of two or less and 115% of AMI or below for families of three or more for homeownership projects
  • 20% set aside for a population at or below 60% of AMI for rental housing projects. See http://www.huduser.org/portal/datasets/il.html for AMI limits.
  • Be located within the City Limits of Atlanta
  • Project must demonstrate evidence of funding need.

Use of Funds:

  • Affordability period is the greater of 15 years or the loan is paid off
  • Used as second mortgage loan (gap financing)
  • Funds cannot exceed 50% of the capital stack for CHDO’s (Excluding developer fees.)
  • CHDOs must obtain, through a firm commitment, a secure funding source for the balance of the total costs of the project

Developer Guidelines:

  • City of Atlanta must designate the organization as a community housing development organization (CHDO) as of January 1 of the year in which the CHDO loan is made
  • Be a CHDO who acts as owner, developer, or sponsor of an affordable housing project
  • CHDO must have experience commensurate with scope and size of the project
  • CHDO must have success in leveraging additional funds
  • CHDO must have a successful track record of property management and marketing
  • Development must meet sustainability requirements

Neighborhood Compatibility

  • URFA encourages developers to plan/develop projects that are located in the following areas:
    • Economic Development Priority Areas
    • Qualified Census Tracts
    • Difficult to Develop Zones
    • Within 1/4 mile of MARTA Mass Transit, Atlanta Streetcar, or Atlanta Beltline
    • Within a Tax Allocation District (TAD)
  • Development must complement and enhance the existing character of the neighborhood
  • NPU Letter