Credit Facility for Bond Recycling of Multifamily T.E. Loans

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