Resia’s Decision Against Biden Administration’s Loan Program #

Officials at Resia, a multifamily housing developer in South Florida, were initially interested in a new initiative by the Biden administration. This effort aimed to provide low-interest loans for housing projects near transit stations. Gus Cabrera, Resia’s director of business development, considered this a prime opportunity to fund a $250 million project for 948 affordable housing units near a Miami-Dade County Metrorail station. However, challenges included the need for investment-grade ratings from two credit agencies, potentially costing nearly $800,000, and a $250,000 upfront fee to the federal government for advisers. Deeming the process “cost prohibitive,” Resia refrained from pursuing the loan, given the uncertain approval outcome.

The initiative, introduced a year prior, intended to promote affordable housing via over $35 billion in lending through pre-existing low-interest programs. Developers building near transit hubs could access these loans through the Transportation Department. However, hurdles have persisted. The administration has yet to finalize any supportive loans for housing projects. Though officials are close to approving the first loan and have eased some requirements, the stringent and expensive conditions have deterred some developers from participating.