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Originally Posted by BrickellBased
Also this is just for the issuance for the bonds correct? It isn't a direct loan. They still have to find people to buy the bonds?
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Here’s a description I found on IHDA’s website:
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IHDA can act as bond issuer and lender and provide credit enhancement through its HUD Risk Share Program. IHDA will underwrite the loan to the Risk Share standards and obtain an FHA-insured loan. The developer is able to work with IHDA directly for the bond issuance, bond loan and automatic 4% LIHTC award. IHDA will also sell the bonds in the marketplace to obtain the bond rate.
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I suppose my questions would be:
Do they have investors already lined up?
How many bonds would they need to sell before breaking ground?
If they weren’t somewhat confident in their ability to sell the necessary bonds to start construction would they be filing construction permits?
To me, all signs point to a good probability that this project will start soon though possibly delayed. My guess is that we see major work commence in early 2024.