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ARIZONA MULTIBANK


 Community Development Corporation

 

 

Affordable Housing


"Arizona MultiBank and their private and public partners are to be commended for establishing this flexible financing loan pool to advance affordable housing for Arizona families."

Arizona Department of Housing

"The Affordable Housing Loan Pool was exactly what we needed to continue our important program of making home ownership a reality for farm worker families in our border community."
Tony Reyes, Executive Director Comite de Bien Estar

"We respect the balance between time and money."

  

HISTORY

Arizona MultiBank Community Development Corporation, was established in 1991 to operate an investment pool that is funded on a long-term basis by Arizona lenders.  Arizona MultiBank is an initiative of the Arizona Bankers Association, and is certified by the U.S. Treasury Department as a Community Development Financial Institution (CDFI).

NEED FOR THE POOL

The Arizona Housing Commission's The State of Housing in Arizona 2000 identified the need to "increase capital to simulate housing development and construction" and to "Create new financing vehicles for existing and future housing programs..."  The State of Arizona sought "a qualified lender to take the lead in bringing together a group of investors and/or financing resources for the purpose of creating a pool of resources in order to provide a flexible, blended-rate lending pool."

RESULTS

MultiBank responded to that challenge and teamed up with FannieMae, Arizona Department of Housing, the U.S. Treasury's CDFI Fund and other investors to create a new Loan Pool of $10 million to advance affordable housing initiatives in Arizona.

LOAN POOL CHARACTERISTICS

•
 Responsive to marketplace needs
•
 Flexible
•
 Single-family and multi-family projects
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 One Lender-various funding sources
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 Competitive rates
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 Consistent, reliable and predictable
•
 Serving low-and-moderate income communities

 
BENEFITS TO BORROWER
•
 Higher lending capacity
•
 Lower costs
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 Streamlined underwriting
•
 Efficient process
•
 Loan relationship in Arizona

 
HOW A LOAN CAN BE STRUCTURED
•
 $300,000 to $1 million
•
 Acquisition, development, construction, rehabilitation and permanent loans
•
 Revolving construction lines of credit
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 Affordable fixed or floating interest rate
•
 Customized to project requirements
•
 Can subordinate to other lenders

 
WHO CAN APPLY?
•
 Nonprofit Affordable Housing Developers
•
 For profit Affordable Housing Developers
•
 Other Developers and Mangers of Affordable Housing Projects in Arizona

WHAT ARE THE REQUIREMENTS?

MultiBank works with finance professionals in affordable housing to underwrite loans for the Loan Pool.  Projects must provide new or expanded affordable housing opportunities for Arizona households that are at or below 80% of the area median income.

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