Wanted to make sure I understood from a high level.
Let's say the project was put in service in 2005 initially. So 15 year compliance period is up next year, and the existing developer wants to reapply for a fresh batch of 4% credits and do another rehab next year.
The property currently has a Fannie Mae loan in place, so in order for the project to go through another rehab, does that mean that when the tax credits are awarded, the developer needs to pay off the Fannie debt with tax exempt bond financing? And then after that, they can go out and pay off the bond using convention Fannie/Freddie/HUD financing to carry them through the 15 year period?