MULTIFAMILY BOND FINANCING

The Community Development Commission expands the supply of affordable housing by issuing multifamily mortgage revenue bonds through the Housing Authority of the County of Los Angeles.

What is the Multifamily Bond Program?
Since 1984, the CDC has issued more than $650 million in mortgage revenue bonds for multifamily housing. The bonds are issued to developers to finance low- and moderate-income housing for families.

Public Benefit
The County requires a defined public benefit before it is willing to act as an issuer for tax-exempt multifamily housing bonds. These benefits must conform to all federal and state requirements for tax-exempt multifamily housing bonds. To ensure a public benefit, developers must set aside at least 20 percent of the units in each project.  These units must be rented to or held available for rent to very low-income tenants (50 percent of median-income, adjusted for household size).  The County reserves the right to impose additional restrictions.

Location
Projects must be located within the County of Los Angeles.  If the project is located within an incorporated city, the County will require a cooperative resolution adopted by that city.  The City of Los Angeles and the City of Long Beach operate their own bond programs.

Priority Projects
Projects are considered on a priority basis.  They include projects that will be instrumental to neighborhood turn-around, provide significant public benefit and preserve existing affordable housing.

Application Requirement
The County requires each applicant to complete the County application.  Applications must be submitted for all multifamily projects seeking bond financing where the County will act as issuer or where the County will sponsor or hold the public hearing required under the Tax Equity and Fiscal Responsibility Act (the "TEFRA" hearing).  This includes all new money issuances requiring an allocation of bond authority from the California Debt Limit Allocation Committee (CDLAC), new 501(c)(3) issues, and refunding of existing bond issues.

Applications must be submitted at least 90 days prior to the relevant CDLAC application deadline to allow sufficient time for County review and approval.  Applications not requiring CDLAC approval must be submitted at least 90 days prior to the desired bond closing date.  Any information provided in the application must be considered public information by State law.

Bond Counsel
The County shall select bond counsel, or in the event the applicant wishes to select bond counsel (subject to finance team approval) the applicant shall pay any additional costs associated with separate issuer counsel.

Finance Team Approval
The County shall have approval of all Finance Team members.

Independent Study
The County reserves the right to require an independent study of any proposed project.

Types Of Bonds
Costs Of Issuance
 2010 Income and Rent Limits 
 2009 Utility Allowance