Oak Grove Capital Selected as Lender for FHA Tax Credit Pilot Program
- Apr 30, 2012
St. Paul, Minn.—Oak Grove Capital, a national provider of real estate financial services, announced its selection as a lender for FHA’s new Tax Credit Pilot Program. The Pilot Program is designed to expedite the loan application process to meet the tight deadlines imposed by the LIHTC program.
The Pilot Program was created with the goal of issuing Firm Commitments within 60- 90 days of submission of a complete application, and closing the loan within 90–120 days of its submission. Other key benefits of the Pilot Program include an increase in hard cost limits for moderate rehab to $40,000 per unit (previously $15,000 per unit), and the elimination of Davis Bacon labor wage requirements.
While the Pilot does create a well-defined application submission format and intends to streamline application processing, it does not alter the underwriting standards of other program requirements under the MAP Guide.
The Pilot Program will initially be conducted only in the Boston, Chicago, Detroit and Los Angeles FHA Hubs, and will provide streamlined debt financing for the refinance of newly constructed LIHTC deals, acquisition rehab or refinancing of Section 8 deals, and acquisition rehab with new LIHTCs