Tax Exempt Financing

General Information on Tax-Exempt Financing

Please Note: This page is intended primarily for Developers and Bond Counsels.

The Hampton Redevelopment and Housing Authority considers applications for tax-exempt financing needed to acquire land and/or improve, construct or rehabilitate proposed or existing apartment projects. These projects are not owned, operated or managed by the Authority or is financing provided by the Authority. The Authority acts as a conduit for the developer to obtain a lower interest rate thus strengthening the financial feasibility of a project. The Internal Revenue Service (IRS) requires that developers choose to rent at least twenty percent of the apartment units proposed or existing to persons making less than 50% of the area’s median income or forty percent of the apartment units to persons making less than 60% of the area’s median income. The reference to “tax-exempt” applies to the interest paid by the project developer to the “bond holders” for Federal income tax purposes and does not exempt or shelter the project from any usual and customary tax assessments.

While many projects may be approved, actual closings do not always occur. The developer must arrange financing and must also secure approvals on site plans, construction drawings and specifications as well as satisfy any applicable zoning ordinances. Further information regarding these approvals may be obtained from the appropriate City departments.

Documents Available

The following documents are available for download:

‌‌‌ HRHA's Tax Exempt Financing Procedures Manual
‌‌‌ HRHA's Bond Application Form

Contact Information

Any further questions? Please call:

Ms. Nancy Burleson
Finance Director
Hampton Redevelopment and Housing Authority
(757) 727-6337