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CalHFA approves final loan commitment for 160-unit Holton Maine affordable housing project
Summary
The board approved a final loan commitment for the Holton Maine multifamily project in the Pomona/L.A. area (160 tax-credit units targeting 30–70% AMI), while noting underwriting exceptions tied to deferred developer fees and refinance exit tests.
The California Housing Finance Authority board on Jan. 28 approved a final loan commitment for the Holton Maine multifamily project, the first of the agency’s MIP 24 transactions to be considered by the board.
Staff described Holton Maine as a 160-unit tax-credit project in the Los Angeles/Pomona area targeting households at 30%–70% of area median income. Housing finance staff said the deal required two underwriting exceptions: an exit (refinance) test in which the projected refinance in year 17 leaves the agency’s MIP loan unpaid in full if only first-lien proceeds are applied, and a tax-credit investor requirement directing surplus cash flow to deferred developer fees for roughly 13 years rather than the standard 50–50 surplus split.
Steve Gallagher and Jennifer Beardwood told the board those investor-driven structuring requirements reduce early MIP paydown but staff recommended approval, noting this pattern is appearing more often in the current market. Board members — including Director Prince and Director Russell — pressed staff about alternatives such as increasing the MIP loan or lowering deferred developer fees to accelerate repayments; staff said they are discussing structuring options with developers.
Directors praised the project as an infill development that serves LA County and the Inland Empire. Staff said construction can begin after closing. Director Lee placed the motion to approve; roll call recorded ayes and the board approved the resolution tied to the final loan commitment.
Staff emphasized these are the first of several MIP 24 deals that will come before the board in the next months; they also said they will bring a broader MIP program overview to the board in February to discuss program goals and materiality.
