Multiple Family Mortgage Revenue Bond

Multiple Family Mortgage Revenue Bond Program Overview

The purpose of the Program is:

Increase the supply of rental housing in the County; and
Provide housing units affordable for lower income residents.

Accepted housing projects will be able to use tax-exempt revenue bonds issued by the County pursuant to Section 52075 of the California Health & Safety Code, and applicable provisions of the Internal Revenue Code. The bonds will not involve any pledge of County revenues, taxes, or assets.

Governing Documents

The Multiple Family Mortgage Revenue Bond Program is governed by the County Debt Policy (PDF)

Eligible Projects

Bonds may be issued for projects which:

Meet program requirements;
Located in the unincorporated areas of the County or in incorporated areas with approval by both the applicable City and the County;
Have a commitment fee paid by the developer; and
Have a developer loan commitment from an acceptable lender and/or credit enhancement provider.

Program Details

Loans under the multifamily bond program will generally be amortized for 30 years and will be due at the expiration of the credit enhancement (e.g., typically 7 years for a letter of credit, 40 years for FHA insurance). The bonds may remain outstanding with an extended or replacement credit enhancement. Effective loan rates will depend upon market conditions at the time of bond sale, and the type of bond structure. Bonds to be issued will generally be rated by a nationally recognized rating agency, and carry at least an "A" rating. If a developer is contemplating an issuance of unrated bonds, the developer should immediately contact the County for additional guidance.

The County is not currently accepting applications for Mortgage Revenue Bond Projects.

Multiple Family Mortgage Revenue Bond