704.05

Third-Party Lender

Requirements

If the lender type1 is...

 Then a Third-Party Financing...
  • Public Entity; or
  • non-profit

Can:

 

  • be Soft Financing; or
  • require mandatory payments of
    • P&IP&IPrincipal and interest , or
    • interest only.

Affiliate of the Borrower that is not a:

 

  • Public Entity; or
  • non-profit
 Must qualify as Soft Financing per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 704.04: Soft Financing.

Any other lender

Is not permitted.
1 For a Third-Party Financing structured as a bond financing, the bondholder is the lender for this analysis.