Construction Financing: The Agency will make available up to 50% of the approved construction loan required to complete the project. The balance of the construction loan will be through a co-first participating "lead lender" that will lend a matching 50%. The amount of the combined construction loans will be reduced by the amount of subsidy available to the project for construction costs. The lender will be responsible for underwriting construction loan applications and advancing all Homeownership Incentive Fund (HIF) and MONI project funds.

Homeownership Incentive Fund (HIF): Subsidy funds will be made available to construct low- and moderate-income units in eligible mixed-income developments. In targeted areas, funds will be available to subsidize market-rate housing units developed without affordability restrictions. The maximum subsidy will be $35,000 for moderate-income units or market-rate units built in MONI eligible neighborhoods, $50,000 for low-income units, and $60,000 for two-family wellings. Developers requesting subsidy funds must utilize the construction loan component of the program.

Permanent End Loan Financing (OPTIONAL): Eligible first-time and urban Smart Growth area homebuyers may apply for mortgage loans through the Agency's Home Buyers Mortgage Program, administered through a network of participating "lead lenders." Developers may also request approval to participate in the 100% Mortgage Program. This program does not require a down payment and certain closing costs may be financed; borrowers are required to have sufficient liquid assets to pay escrows at the time of application (approximately $800).