Leveraging HUD Financing and Historic Tax Credits for Multifamily Housing: Pairing Forms of Financing

Navigating Bridge Loans, HTC Investor Concerns and Loan Closing Coordination

Recording of a 90-minute premium CLE webinar with Q&A

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Conducted on Thursday, March 3, 2016

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Course Materials

This CLE course will discuss the pairing of HUD-insured multifamily construction financing with the Historic Tax Credit. The program will discuss the process of each form of financing, how each impacts the other, and best practices for avoiding pitfalls that can arise when these forms of financing are combined.


In putting together financing for multifamily construction, HUD-insured loans and Historic Tax Credits are two critical pieces of the financing. However, pairing finance sources can be a logistical nightmare given the complexities of the rules and requirements for each. Successful pairing requires counsel to consider several critical issues.

If the project will utilize a bridge loan, several issues need to be considered. For example, HUD does not permit the bridge borrower to be the same on the HUD loan. Also repayment of the bridge loan must be acceptable to HUD and there are limitations on the source of repayment of the loan.

If the project is utilizing the master lease structure for the Historic Tax Credit piece of the financing, there are several HUD requirements that counsel will need to be prepared for and address up front. For example, HUD will require the HTC investor to sign HUD’s SNDA agreement, a requirement that may not please the investor.

The closing process and flow of document review with respect to HTC deals and HUD financing are quite dissimilar. HUD’s closing process is relatively orderly and without a last minute flurry of activity. The HUD loan package is generally reviewed many weeks in advance of the closing. HTC negotiations typically tend to come right down to the closing wire, so adjustments need to be made to account for the HUD review process. Counsel supervising the deal must ensure both processes are well coordinated.

Listen as our authoritative panel of real estate counsel analyzes the processes for and pitfalls in pairing HUD-insured multifamily construction financing with the Historic Tax Credit. The panel will look at how each financing source impacts the other and outline best practices for avoiding pitfalls that can arise when combining these financing vehicles.



  1. HUD-insured construction and substantial rehabilitation loans
    1. Overview of the process and documentation
    2. Interplay with bridge loans
  2. Historic Tax Credits
    1. Overview of the HTC investment structure
    2. Master lease structure
    3. HUD requirements
  3. Interplay between HUD financing and HTC financing: Best practices for smooth closing of the deal


The panel will review these and other key issues:

  • What HUD issues are raised if the project intends to utilize a bridge loan?
  • What HUD issues arise with respect to the HTC investor, and what can counsel do to mitigate the investor’s concerns?
  • What steps can counsel take to ensure a smooth closing when pairing HUD financing and HTCs?


Daniel Budihardjo
Daniel Budihardjo

Kantor Taylor Nelson Evatt & Decina

Mr. Budihardjo practices transactional business and real estate financing with a concentration on the financing of...  |  Read More

Waller (Watt) Taylor, III
Waller (Watt) Taylor, III

Kantor Taylor Nelson Evatt & Decina

Mr. Taylor has more than 34 years of housing and real estate experience with an emphasis on federal programs providing...  |  Read More

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