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HFA
Q: How is the HFA different from the city government’s
other housing agencies?
A: While the Department of Housing and Community
Development (DHCD) and the D.C. Housing Authority share
the HFA’s mission to increase the city’s affordable
housing stock and expand homeownership opportunities,
each department has different methods to reach these
goals. The HFA issues tax-exempt Mortgage Revenue Bonds
that both lower the cost of financing single-family
housing and the costs of acquiring and constructing
rental housing. DHCD primarily uses federal funds from
the U.S. Department of Housing and Urban Development
to provide loans and grants to developers for affordable
housing developments and low-interest loans to first-time
homebuyers. The D.C. Housing Authority provides public
housing to residents who demonstrate a need for assistance.
Q: Does the HFA provide homeownership counseling?
A: The HFA’s Home Resource Center offers
free homeownership counseling to individuals.
Q: Does the HFA offer down payment and closing cost
assistance to first-time homebuyers?
A: Through the HFA’s Assisted Rate Mortgage
Loans, individuals can receive 3% of the purchase price
of a home for down payment and closing cost assistance.
In addition, homebuyers can apply for down payment and
closing cost assistance funds from DHCD’s Home
Purchase Assistance Program (HPAP). To learn more about
HPAP, log onto http://www.dhcd.dc.gov/main.shtm.
Q: Does the HFA offer low-interest mortgage loans
to individuals?
A: For many years, the agency has been Washington’s
most notable financier of low-interest mortgage loans.
Unfortunately, with the unstable state of today’s
economy, the agency has elected not to make mortgage
loans at this time. However, the HFA remains committed
to offering mortgage loans that are below market rate
and plans to announce a new bond issuance once interest
rates stabilizes.
Q: How can the HFA help an organization that is
interested in developing an affordable housing development
in the District?
A: The HFA issues Mortgage Revenue Bonds to finance
the rehabilitation, construction and acquisition of
multifamily housing developments. Nonprofit, for-profit
and 501(c)(3) developers can take advantage of tax-exempt
bonds, taxable bonds and 4% Low-Income Housing Tax Credits.
Q: When can an organization submit a proposal for
HFA Mortgage Revenue Bond financing?
A: The HFA accepts applications for the financing
of multifamily developments throughout the year. Previously,
Funding Rounds were held in April and October of each
year, but many developers had to wait several months
before submitting their applications for Low-Income
Housing Tax Credits and tax-exempt and taxable bonds.
Recognizing that development does not occur on a six-month
timeline, the HFA’s Board of Directors and Executive
Director opted for a more flexible rolling development
application process. Now, nonprofit and for-profit developers
can request financing immediately after their development
plans are complete.
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