Multifamily Gap Program
The Louisiana Housing Corporation (LHC) will issue Application Guidelines and open the Application Period for loans and grants for developers with multi-family structures of 20 or more units under the Multifamily Restoration Gap Program (MRGP). Widespread flooding in 2016 has resulted in the loss of affordable rental units across more than 51 Parishes. Funds will be available to properties with existing affordability commitments for repair and restoration of flood impacted units. Under a separate branch of the program, existing market rate properties can be eligible for repair and restoration funds, as well as other costs necessary to transition to affordable housing.
Total loan and grant funding available for the MRGP is $38.25 Million, allocated across four pools to ensure participation across various parishes (HUD Most-Impacted and FEMA Disaster Declared), and across various property types (Public Housing, Existing Affordable Housing, and Market Rate conversions). This program is funded through the Community Development Block Grant Disaster Recovery Program (CDBG-DR) from the U.S. Department of Housing and Urban Development.
What Is Provided?
- Zero (0%) interest loans, with payments deferred until maturity or upon sale or upon refinancing.
- For Public Housing and Existing Affordable Housing, the maximum grant or loan, respectively will be $40,000 per flood-impacted unit. For these properties, funds are limited to the cost to repair and restore flood impacted units, as well as certain 3rd party and legal costs.
- For Market Rate housing (which must accept an affordability commitment as a condition of award) the maximum loan will be the greater of $65,000 per unit, or $6.5 Million. For these properties, funds may be applied to the cost to repair and restore flood impacted units, and may also be applied to the cost of 1st mortgage debt restructuring required to convert to affordable housing.
Who Is Eligible?
Loans (or, for Public Housing Authorities, grants) will be made available based on a scoring system that prioritizes financial efficiency (i.e., the lower the loan or grant relative to the maximum funds for which the project is eligible, the higher the score), and recognizes impact (i.e., points will also be awarded for the number of flood-impacted units returned to service).
To be eligible for a loan or grant under this Program, an applicant property must meet the following criteria (this listing is abridged, additional criteria apply):
- Must be multifamily property of at least 20 units.
- Must have an eligible unmet need, after deducting all duplicative assistance (SBA loans, NFIP proceeds, etc.)
- Must be located in one of the 51 parishes impacted by the 2016 Severe Storms and Flooding Events and have been directly impacted by the storms/floods, with a documented loss of rentable apartments. Priority will be given to the properties located within the HUD most impacted declared parishes.
- Must have an existing affordability commitment, or accept the Restoration Loan Affordability Commitment.
- If the property was located in a Special Flood Hazard Area at the time of the flooding, it must have carried flood insurance.
- Repairs to flood impacted units may be either underway, not yet started, or completed.
When Does the Program Start?
The Program’s estimated timeline is below. Applicants will be able to apply in late June announcements will begin in mid-June.
Tangipahoa (City of Covington Council Chambers) April 24 – 9:00 am – 12:00 pm
Lafayette Parish (Lafayette Public Library) April 25 – 9:30 am – 12:30 pm
Caddo Parish (Bill Cockrell Community Center) April 27 – 9:00 am – 12:00 pm
Ouachita Parish (West Monroe Convention Center) April 28 – 9:00 am – 12:00 pm
East Baton Rouge Parish (Louisiana Housing Corp) May 1 – 9:00 am – 12:00 pm
Notice of Funding Availability (Application Period Opens) May 15
Deadline for Questions May 31
FAQ’s Published June 6
Application Deadline June 15
Awards Announced June 23