CALHFA CUTS RATES FOR RENTAL PROJECTS.Byline: GREGORY J. WILCOX Wilcox may refer to: Place names in the United States
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In an attempt to increase the supply of affordable housing, a state agency on Thursday Thursday: see week. reduced a key interest rate for construction financing of apartments. The California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Housing Finance Agency dropped the interest rate on 30-year loans for rental projects from 5.80 percent to 5.55 percent. This funding is available to both for-profit for-prof·it adj. Established or operated with the intention of making a profit: a for-profit organization. and nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. developers. ``By lowering these interest rates, CalHFA encourages builders and developers to create more affordable rental housing,'' Theresa Parker, CalHFA executive director, said in a statement. ``These lower interest rates and other new programs will give affordable housing developers more financing options to meet the housing needs of Californians.'' The program is one of many options the Agency's multifamily division is developing to encourage growth in the number of affordable rental housing units statewide. CalHFA has a variety of loan programs to aid first-time buyers first-time buyer n → persona que compra su primera vivienda first-time buyer n → personne achetant une maison ou un appartement pour la première fois first-time buyer . The agency was created in 1975 with the goal of helping more Californians live in a home they can afford. It's multifamily division has invested more than $2 billion in the the construction and refurbishing of 36,000 affordable rental housing units to assist very-low- and low-income Californians. Program Director Edwin Gibson said the loans are attractive because of the agency's access to a lower cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. . ``Our credit rating makes us able to attract low-cost bond funds and we pass that on in our financing,'' he said. The program is also designed to work with the tax credit program administered by the state Treasurer's Office. The developers sell tax credits to investors, who get an equity stake in the project and become limited partners. And there is usually lots of competition for the funds. ``There is a limited supply of tax credits allocated to states, and it's based on population. So there is a limit to how many credits are available,'' he said. Additional information can be obtained by visiting the agency's Web site at www.calhfa.ca.gov or calling toll-free (877) 922-5432. greg.wilcox(at)dailynews.com (818) 713-3743 |
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