Wisconsin Housing and Economic Development Authority has posted several changes to the 2017 LIHTC program. WHEDA’s Commercial Lending staff is available to answer any questions regarding the following changes:
- The competitive (9%) application deadline is 5:00 PM on March 3rd, 2017
- The expected LIHTC pricing range for 2017 will be $0.88 to $0.94
- The pricing range above will result in a change to the Credit Usage scoring category – in brief, the ranges for properties in Dane County and Metro Milwaukee will increase by 8%, and the ranges for properties in other areas of the state will increase by 9%
- For the 2017 cycle, WHEDA will require that a minimum of 85% of projected funding sources be ‘committed’ at the time of application. For the purposes of this requirement, ‘committed’ funding sources include the following:
- The permanent loan amount based on WHEDA’s loan terms on the date of application (the applicant may use other terms if a term-specific, executed financing commitment accompanies the LIHTC application)
- Other loans or grants with a firm commitment from the lender/grantor/government entity – identifying amount, interest rate, term, and amortization
- Historic tax credit equity (with a Letter of Intent from the Syndicator/Investor)
- The LIHTC equity amount calculated in LOLA
If the application’s uncommitted funding sources exceed 15%, WHEDA will increase the credit amount (as needed) to reduce uncommitted sources to 15% – this may result in a reduction of points in the Credit Usage scoring category.
