Multi-Family Bond Program (MBP) - Outreach to HUD 202 Projects

MBP 4 202s

Utilizing Tax Exempt Bonds and Tax Credits to Address Project Needs

On April 25, 2006, the Maryland Department of Housing and Community Development (DHCD) kicked off its outreach to Maryland nonprofits that own and operate senior projects financed through the HUD 202 Program. The Department held a workshop to explain how the Department’s Multifamily Bond Program can be used in conjunction with Federal Low Income Housing Tax Credits to preserve and rehabilitate older 202 senior housing developments throughout Maryland.

DHCD’s goal is to bring together the necessary partners and work in concert with nonprofit owners to address the present and future capital needs of 202 projects to ensure the long-term operational viability of these critically needed affordable housing resources for Maryland’s seniors.

MBP 4 202s offers several attractive features:

• Low Interest Rates
• Equity from federal Low Income Housing Tax Credits
• One-on-One Technical Assistance for Borrowers
• Streamlined and flexible DHCD processing

MBP 4 202s will take advantage of CDA’s ability to raise capital for multiple projects simultaneously, thereby passing on cost savings and processing efficiencies to borrowers. This successful model was used by CDA previously to benefit Public Housing Authorities in Maryland.

MBP 4 202s includes many of the basic attributes of CDA’s existing tax-exempt bond mortgage products:

• Fixed rate mortgages for the life of the loan
• Mandatory credit enhancement
• Eligibility for the allocation of automatic 4% tax credits in accordance with IRS requirements.

To learn more about MBP 4 202s:

View the PowerPoint presentation from the April 25 workshop  

Contact John Maneval (410-514-7451) or Patricia Rynn Sylvester (410-514-7481)
email: 202@mdhousing.org

See description of Multifamily Bond Program