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Affordable Housing Financing Options

As one of the largest affordable housing developers in California, KDF Communities brings a successful track record and strong balance sheet to each situation. Consequently, KDF continues to be a preferred borrower of lending institutions and is able to secure financing at the most favorable terms.


Since its inception, KDF has closed over 50 affordable housing transactions with various lending and investment companies. These projects were financed with over one billion dollars of tax-exempt bonds, taxable debt, and tax credit equity. We have worked with some of the largest and best-known lenders and investors in the industry including Bank of America, JER Hudson, Centerline, Citibank, East/West Bank, GMAC, Union Bank, US Bank, and Wells Fargo.


The type of financing chosen for a project depends heavily on the product type selected (rental, for-sale, senior, or family), the desired level of affordability, and the type of funding available at the time. Identifying a financing plan with the right mix of affordability and certainty of execution requires a comprehensive analysis of benefits and drawbacks of the many different funding sources available. The KDF team has closed transactions with the following affordable housing financing sources:

  • Tax-Exempt Bonds

  • 4% Low-Income Housing Tax Credits

  • 9% Low-Income Housing Tax Credits

  • Multi-Family Housing (MHP) Program Funds

  • New Markets Tax Credits

  • Redevelopment Agency Funds

  • HOME funds 

  • CDBG funds

  • HEART Funds

  • AHP Funds

  • HUD – Interest Reduction Payments (IRP)

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