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					                                     DELAWARE CREDIT ENHANCEMENT/FINANCING PROGRAMS – AFFORDABLE HOUSING
    ORGANIZATION AND                                                           RATES AND TERMS
       PROGRAM                             ELIGIBLE USES                        LENDING LIMITS                  ROLE FOR BANKS                             CONTACT

DELAWARE STATE HOUSING          This federal program, created by the        The investor’s principal and a    Banks can make equity        James M. Peffley
AUTHORITY (DSHA)                1986 Tax Reform Act, makes available        return on investment is           investments in limited       Housing Finance Administrator
                                to owners of and investors in low-          repaid over a 15-year period.     partnerships in tax-credit   Delaware State Housing Authority
Low-Income Housing Tax Credit   income rental-housing projects a credit      Banks can make equity            projects.                    820 North French Street, 10th Floor
Program                         that is a dollar-for-dollar reduction of    investments in equity fund of                                  Wilmington, DE 19801
                                their tax liability. A limited supply of    Delaware Community                                             (302) 577-5001
                                tax credits is allocated annually to each   Investment Corporation or                                      (302) 577-5021 (fax)
                                state based on population. In Delaware,     other syndication pools or                                     E-mail: jim@dsha.state.de.us
                                DSHA is responsible for tax credit          can invest in an individual tax                                Web Site: www2.state.de.us/dsha
                                allocations. Maximum tenant income is       credit project. Minimum
                                60% of area median income.                  equity investment in tax
                                                                            credit projects in Delaware
                                                                            generally is $300,000.
Mortgage Revenue Bonds          DSHA periodically issues single-family      These tax-exempt bonds have       Banks purchase the bonds     Joseph A. Scocas
                                mortgage revenue bonds. In recent           a ready market and are easily     and can hold or sell them.   Housing Finance Officer
                                years, a typical issue consists of serial   resold. Interest rate is                                       Delaware State Housing Authority
                                bonds, CRA bonds, and subordinated          competitive with tax-exempt                                    820 North French Street, 10th Floor
                                bonds. The CRA bonds have tended to         bond market. Minimum                                           Wilmington, DE 19801
                                be the largest of the three parts. Bonds    denomination is $5,000.                                        (302) 577-5001
                                serve one- and two-person families with     Term is one to 30 years                                        (302) 577-5021 (fax)
                                income of up to 100% of area median         (depending on bond                                             E-mail: joseph@dsha.state.de.us
                                income and families with three or more      maturity).                                                     Web Site: www2.state.de.us/dsha
                                people with income of up to 115% of
                                area median income.
                                       DELAWARE CREDIT ENHANCEMENT/FINANCING PROGRAMS – AFFORDABLE HOUSING

  ORGANIZATION AND                                                               RATES AND TERMS                      ROLE FOR
     PROGRAM                             ELIGIBLE USES                            LENDING LIMITS                       BANKS                             CONTACT

DELAWARE STATE               SMAL mortgage-revenue bonds are                The SMAL mortgage-revenue-            Banks purchase       Richard Clarke
HOUSING AUTHORITY            privately placed, taxable capital              bond issue is structured as four      SMAL loans and       Assistant Housing Finance Administrator
(DSHA)                       appreciation bonds. Proceeds of the            31-year taxable capital-              hold them for the    Delaware State Housing Authority
                             issuance are used to fund second-mortgage      appreciation bonds. Interest and      full term.           820 North French Street, 10th Floor
Second Mortgage Assistance   loans of up to $5,000 for down payment         principal are due at maturity, but                         Wilmington, DE 19801
Loan (SMAL) Program          and closing costs to qualified first-time      prepayments are allowed at any                             (302) 577-5001
                             home buyers. SMAL loans are originated,        time. Interest rate tends to be                            (302) 577-5021 (fax)
                             processed, and underwritten by a qualified     between 4.75% and 5.25%,                                   E-mail: richard@dsha.state.de.us
                             lending institution for DSHA. Repayment        varying according to the size and                          Web Site: www2.state.de.us/dsha
                             of principal and interest is deferred until    cost of issue. Minimum
                             the property is sold or transferred or is no   purchase amount is $1 million.
                             longer the borrower’s principal residence.
                             Maximum statewide home-buyer income
                             limits are $36,500 for one- and two-person
                             family and $41,500 for a three- or more
                             person family.
CRA Bonds                    Program uses below-market-rate CRA             CRA bonds have 30-year terms          Banks purchase and   Joseph A. Scocas
                             bonds as part of its single-family mortgage-   and are priced with a coupon          may sell CRA bonds   Housing Finance Officer
                             revenue-bond issues. CRA bonds produce         below that of comparable tax-         on secondary         Delaware State Housing Authority
                             a sizable reduction in DSHA’s cost of          exempt bonds. Price is based on       market.              820 North French Street, 10th Floor
                             funds and therefore in the mortgage rate it    the yield of a bond with the same                          Wilmington, DE 19801
                             is able to offer its borrowers. Bonds were     maturity as the average life of the                        (302) 577-5001
                             designed to provide an opportunity for         term bond using typical                                    (302) 577-5021 (fax)
                             financial institutions in Delaware to meet     prepayment spreads. Interest                               E-mail: joseph@dsha.state.de.us
                             their CRA responsibilities. Bonds serve        rate tends to be slightly below                            Web Site: www2.state.de.us/dsha
                             one- and two-person families with incomes      tax-exempt bond rate. Minimum
                             of up to 100% of area median income and        amount is $5,000.
                             families with three or more people with
                             income of up to 115% of area median
                             income.