Michigan’s Gap Financing Program
In an effort to improve direct lending production, MSHDA is again making available a combined total of approximately $18 million of MSHDA HOME and Preservation Funds to its Rental Development division to be exclusively utilized in the Gap Financing Program.
Participation in the Gap Financing Program requires the applicant to also obtain tax-exempt bond funded permanent financing from MSHDA. Both gap funding types will be made available to projects without regard to whether they are a new construction, adaptive reuse, acquisition/rehabilitation, or preservation transaction. MSHDA specifically reserves the right to fund any application submitted under this NOFA with either or both of the sources of funding being made available. Accordingly, applicants should note that developments receiving HOME funding may be subject to federal cross-cutting guidelines. A minimum of fifteen percent of the Authority’s annual HOME allocation will be set-aside for CHDO eligible proposals. All other terms of the Gap Financing Program apply to the CHDO proposals.
The NOFA, available below, describes what types of projects will be eligible and the allocation process through which these funds will be awarded.
Other Items of Interest
