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Home > About GDB > Principal Subsidiaries > Puerto Rico Housing Finance Authority > PRHFA Programs

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PRHFA Programs

Subsidy Program for Social Interest Housing - Act 124

Act No. 124 of December 10, 1993, as amended, created a new subsidy program for low income housing.

•	The Department of Housing of Puerto Rico approves the Rules and Regulations for the Program while.

•	The PRHFA manages it, thus contributing to reach the program's goals.

•	The subsidy is applicable to new construction or refurbished projects undertaken by private developers.

•	PRHFA grants a subsidy directly to eligible buyers, up to a maximum of 5% of the selling price, to be applied to the down payment.

•	The financing is provided by private banks.

•	The selling price of the housing units in between $94,000 and $143,000.

•	PRHFA performs the pre-evaluations for the projects that apply to the Program.

•	PRHFA follows up on projects submitted to the Puerto Rico Planning Board for site consultation.

•	The Authority promotes the promptness, uniformity and coherence among the agencies granting permits.

Section 42 of the Internal Revenue Code

•	Provides financing through the sale of tax credits to United States investors.

•	The product of the sale contributes to create and preserve rental housing units.

•	The Federal Tax Credit Program receives each year a per capita amount that for 2014 is approximately $8.3 million per year for 10 years.

Section 45D of the Internal Revenue Code

•	Provides financing through the sale of tax credits to United States investors.

•	The product of the sale contributes to boost the for-sale housing market in in the island.

•	In 2009, this federal tax credit program received $45 million.

Economic Stimulus Program

•	Second mortgage loans for first or second homes.

•	Up to $10,000 for existing properties or up to $25,000 for new properties, applicable to the down payment.

•	No monthly payments of principal or interest, and no interest accrued during the first 10 years.

HOME Investment Partnerships Program

•	A Federal Department of Housing and Urban Development program.

•	PRHFA manages this program that promotes the development of social interest housing.

•	The program takes part in the following eligible activities: • Construction or rehabilitation of housing for rent • Assistance to buyers (for the down payment and closing costs in the purchase of housing with a minimum $1,000 and an average maximum of $45,000) • Assistance to homeowners for rehabilitation or construction • Assistance to CHDOs with operating expenses

Interim Loans for Construction

•	PRHFA offers financing for construction of housing projects for sale in which the price per unit does not exceed $200,000.00.

•	The Authority's fee varies depending on the kind of project (new construction or rehabilitation), the sale price per unit, the profit percentage for the developer, on whether the project is FHA insured, and on whether PRHFA will provide subsidy to the buyer families.

•	The Authority will provide financing of up to 80% of the total cost of the development.

Subsidy Housing Administration

The Authority manages the Section 8 programs (Moderate Rehabilitation, Housing Voucher, and Homeless Project), which allow families to rent private housing units. The Authority pays the homeowner the difference between 30% or 10% of the family's adjusted income and the unit's rental price. The Authority processes applications of those interested in participating in the programs, determines eligibility and the rent for families. At present PRHFA manages approximately 2,200 units under the Section 8 programs.

Subsidy Contracts Administration

The Authority was chosen by the Federal Department of Housing and Urban Development (HUD) to manage the subsidy contract for Section 8 projects in Puerto Rico. Through this program, the projects’ managements are monitored to insure the quality of life of the residents and the adequate use of the federal funds.

In addition, the Authority is responsible for making subsidy payments to project owners, renewing subsidy contracts, approving and processing rent increases, ensuring that deficiencies found during inspections are corrected, and conducting annual administrative audits.

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