HOME Investment Program, Low Income Housing Tax Credits and HUD Multi Family Loans

[Victor Chico]

Hello:

I looking for someone who has had experience with the above mentioned programs. Here is my story...

I have a single family home in a big lot. I rent it under Section 8. I have already spoken with a friend who's an architect/engineer and the lot can accommodate 4 to 5 additional units. Since this will all be low income housing, I am looking for financing alternatives.

I have read about Low Income Housing Tax Credits (LIHTC) and what I am reading tells me (if I am reading it right) that for a project of this size (i.e., 6 units tops) the costs involved in getting and issuing the credits will not make the project cost-effective.

Therefore, I am currently pondering the option of developing using funds from the HOME Investment Program and then put permanent financing in place with a HUD's Multifamily Loan.

So, if you have had any experience with what I mention above, PLEASE share. I will buy you coffee (or preferably beer) whenever you are in my neck of the woods (sunny Puerto Rico).