Buying a Section 8 complex. Any government lending programs?
Hello everyone. I was looking at a section 8 apartment complex that's for sale. 

Does anyone have information or know about specific funding through the government to purchase section 8 housing?
[{"id": "j2btoy7", "text": "Ginnie Mae... contact me if you need help.\n\nLow interest, high LTV gov backed loans.", "replies": [{"id": "j2e1l2y", "text": "Pmed", "replies": [], "depth": 2}], "depth": 1}, {"id": "j2bvste", "text": "Fannie Mae and Freddie Mac have an affordable department that would be great for it. Could also go the HUD route if you can stomach not rate locking for 6-9 months.\n\nI work for a lender and our team specializes in Agency financing, so shoot me a message if you\u2019d like to discuss further or have any questions!", "replies": [], "depth": 1}, {"id": "j2c8hcp", "text": "Im interested in a similar property.  It was build on LITC credits and requires certain amount of units to be saved and rented to very low income, slightly different than the Sec 8 package.  Any ideas how to get some funding to acquire this type of property?  Bank wants multiple investors and 20% down.", "replies": [{"id": "j2dtw3c", "text": "I'm an affordable housing developer. They give any reason they want multiple investors?", "replies": [{"id": "j2duy0z", "text": "We have several other propertues but nothing this size so my guess is just that they want to make sure we spread the risk.", "replies": [{"id": "j2dv7wl", "text": "Ok. And so this is basically a straight up acquisition of the gp and lp? It's still actively a LIHTC project? Do you know how many years are left in the compliance period?", "replies": [{"id": "j2dwv8b", "text": "8.5 years. Yes acquisition.  Anything to know in this attempt?", "replies": [{"id": "j2e1k3q", "text": "Well...are you gonna have an asset manager and property manager that know how to operate a LIHTC property? Cuz that's pretty crucial. IE maintaining compliance and keeping the credit stream flowing. \n\nIf you're already at yr 8.5, you're probably gonna be needing to think about major capex at yr 10 and definitely yr 15. Will you resyndicate and use the new LIHTC equity for improvements? Or try to make it market. \n\nI'd get to know the housing authority and folks at city hall who deal with affordable property.", "replies": [{"id": "j2eu2g6", "text": "Thought is to go market rate, which improves the cash flow dramatically.  We have not dealt with LITC before so we would find a good manager/accountant to manage the rentals and most of it would do ourselves since we live only a few minutes away. \n\nThe apartments are listed for 2.6M.  Who typically lends on these?  How much down and what terms have you seen?", "replies": [], "depth": 7}, {"id": "j2eu427", "text": "Btw, thank you for the conversation!", "replies": [{"id": "j2evg8s", "text": "Oh, well 2.6M is very small. How many units?\n\nThere's a good chance there is public money available through the municipality or state. \n\nIn my typical deal, we first go after as much public money as possible. Then we syndicate the credits, then size up debt and then figure out if equity is required. But these are at least 10MM. Most are upwards of 20MM. Basically what I'm trying to get at is the deal structure will most likely be different but potentially could be similar.\n\nFor 2.6MM though, I would just start calling around. Local banks may want smaller deals to fulfill CRA. See if there are public agencies offering specific loan products.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "j2e1jf8", "text": "I do property management and am a small \"regular\" developer.  I've read into affordable housing development but it seems very complicated to actually break into it. \n\n\nDo you have any resources that you would be willing to share for someone trying to get into it?", "replies": [{"id": "j2e21i8", "text": "Yup! Novogradac. You can read all sorts of free articles on their website and buy courses. They also used to have (probably still do) YouTube vids.\n\nLIHTC is driven by section 42 of the tax code. It was written by lawyers and accountants so lawyers and accountants are the ones that truly understand the entity structuring and legalese to make sure everything works tax wise.\n\nRe property management compliance I'd look for the certificate courses. I honestly forget them now. Sorry!", "replies": [{"id": "j2e6quz", "text": "Awesome. Thank you.\n\nI'll start with Novgradac.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j2dfzmz", "text": "Didn\u2019t HUD retire the HAP contract program permanently?  I don\u2019t think it\u2019s a public policy interest to subsidize them.", "replies": [{"id": "j2duhii", "text": "HAP contracts are any sort of contract bt a landlord and a funding agency. So you could still have a hap contract for sec. 8 vouchers through your housing authority. HUD subsidy programs do still exist. It's definitely in public interest to subsidize housing. It's incredibly beneficial to society to have our citizens housed and in stable environments. You'd be surprised at how many ppl are one bad event away from losing housing through no fault of their own. Once that happens, the cost to the tax payer increases bc they then usually depend on more public services.\n\nHaving a home gives you access to banking, schools, public resources. Unfortunately, the solution is extremely complex and both sides have valid arguments. I just lean to the left.", "replies": [{"id": "j2dx2re", "text": "Well said.", "replies": [], "depth": 3}, {"id": "j2e4jg2", "text": "I'm glad you found a place to pontificate on political matters unrelated to this topic.  I hope you sleep well at night.\n\nSection 8 HAP contract = A 10 or 20 year contract between HUD and a property owner. The contract runs with the land and can be transferred. The landlord is required to charge specific rents per the contract. HUD pays the landlord a flat amount for the entire property.  The program is retired for new properties, except senior housing.  There may be preferred financing for these properties as the rent is guaranteed by the government and is effectively a bond, assuming competent management.\n\nSection 8 Housing Choice Voucher = The reimbursement is for the tenant, no matter where the tenant lives and doesn't run with the land.  I highly doubt there is preferred financing available as there is no long term contract.", "replies": [{"id": "j2e5jcb", "text": "I do. I was responding to a political comment with my opinion. Your clarifications are helpful.\n\nEdit:\n\nYou can still initiate new sec 8 hap contracts. I'm setting them up for two properties currently. The difference in this instance is that the federal money flows through a local agency and the state housing agency acts on behalf of hud to review the application and signs off on all the paperwork on huds behalf.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]