Description
The Hawaii Housing Finance and Development Corporation (HHFDC) is seeking proposals from qualified financial institutions to provide a revolving credit facility to support the recycling of private activity bond proceeds originally used for short-term multifamily tax-exempt loans. The purpose of this credit facility is to maximize the use of Hawaii's private activity bond volume cap by enabling HHFDC to re-use proceeds from repaid loans for new multifamily housing loans. The selected financial institution will provide a revolving credit line backed by HHFDC's general obligation and secured by loan repayments. Key aspects of the scope of work include:
• Maximum Commitment: Up to $150 million
• Effective Date: No later than a specified date in 2025
• Commitment Expiration Date: Two years from the Effective Date
• Minimum Draws: $500,000, in $100,000 increments
• Revolving Nature: Amounts borrowed may be repaid and re-borrowed at any time during the availability period
• Collateral: Draws will be secured by cash repayments of prior multifamily loans originated under HHFDC's tax-exempt bond programs
• Borrower Credit: The Facility will be established under HHFDC's general obligation credit
• Termination Rights: HHFDC may reduce or terminate the unused portion of the commitment with five business days' written notice, without penalty