Twain Closes First-Ever Deferred Developer Fee Bridge Loan

Catie DandridgeUncategorized

Twain Financial Partners closed its first Deferred Developer Fee Bridge Loan on a Low-Income Housing Tax Credit (LIHTC) property in October of 2019. The developer, Four Corners Development, whose fee was bridged by this new loan program developed Peakview Trails Apartments. The project is a newly constructed, four-story, 96-unit LIHTC development in Greely, Colorado, which serves seniors at or below 30%, 50% and 60% of the area median income that placed in December 2018.

Many LIHTC developments are financed with a portion of the development fee unpaid by project sources, “deferred” until the development’s operations can pay the fees. Some state housing finance agencies regulate development fees, requiring that some development fee be deferred.  This loan program accelerates these fees to developers.

“By providing loan proceeds to developers after a project has stabilized and received credits, Twain can provide developers with much needed cash-in-hand that may otherwise be realized over the course of 5, 10, or even 15 years,” said Jacob Engle, Director of Affordable Housing at Twain. “Developers may then use loan proceeds to establish a guaranty fund, acquire site control on the next deal, or grow the development company.”

Learn more about LIHTC.