Appendix L: Senior Living Revolving Loan Program

Table of Contents

Updated 10-02-2026

Purpose: This loan program is to assist in the development of affordable assisted living and service enriched affordable housing for seniors and persons with disabilities. The loans can be used for the construction period and the permanent loan. This program is administered following the rules established in 265—Chapter 20.

This loan program is available for senior housing projects that receive an allocation of 9% tax credits and successfully finalize a syndication or direct investment agreement for the purchase of tax credits.

 

Available funds: At least $1,500,000.

 

Amount of Loan: The maximum loan amount is $1,000,000 and the minimum loan amount is $100,000.

 

Loan Terms:  The maximum loan term and amortization period are 30 years.  The interest rate is 1%. Loans will be secured by a first mortgage.

 

Debt Service Ratio: 1.25:1 for IFA’s first mortgage (minimum of 1.20:1 overall), as calculated by the Authority.

 

Fees:  No additional fees are due at the time of application.  A commitment fee of 1% and an inspection fee of .5% of the loan amount are due upon acceptance of the commitment for the construction loan.  A commitment fee of 2% of the loan amount is due upon acceptance of the commitment for the permanent loan. 

 

Instructions:  If applying for this funding source:

  1. The online Application must have the Senior Living Revolving Loan box checked on the Project Description Tab with the loan amount and terms listed on the Funding Sources Tab.

  2. In the event that insufficient funds are available for a project, provide an alternative funding source on the funding sources tab in the Application and save a letter of intent under Exhibit 5T or 6T.  The LIHTC amount is required to stay the same for both scenarios.