For-Profit Loan Program Description
Eligibility and Terms
Loan Type: Acquisition, construction, bridge, rehab, mini permanent.
- For-profit developer with track record of developing affordable housing for either rental or homeownership. Developer should have a minimum of 2 years experience and 5 properties developed or under management. Developer must have a demonstrated record of producing quality renovations and maintaining properties under management (a third party inspection will be conducted).
- Strong preference for developers based in New Haven or nearby towns, with local property management capacity. Non-local investors must demonstrate established relationship with local property management firm.
- Must be in compliance with City of New Haven rental registration program and clear of unresolved code violations. If there is a history of code violations, the investor must demonstrate timely response in addressing violations.
- Must have a demonstrated desire and commitment to engage with the community and respond to community concerns.
- Priority to developers who incorporate energy-efficient rehab practices.
- Must show financial capacity.
- 1-4 Family – Multi-Family Residential Properties
- Properties located in low-moderate income census tracts, with priority to properties in close proximity to investments by Loan Fund, City of New Haven, and other nonprofit partners.
- Properties located throughout the Greater New Haven community with demonstrated income restrictions and affordability mechanisms.
- If housing is in a low-moderate income census tract, then no affordability restrictions
- If housing is not in a low-moderate income census tract, affordability restrictions may apply
To determine if a property is located in a Low-Moderate Income (LMI) census tract, use the search tool located here: http://www.ffiec.gov/Geocode/default.aspx. Enter the property address, click “search,” and then click “get census demographic.”
- Loan Amount: $25,000 – $250,000+
- Term: 12 months for construction/Up to 36 months for permanent
- Interest Rate: 7-8% based on GNHCLF cost of funds
- Amortization: interest only for short-term loans; up to 20 years for longer term loans
- LTV: Up to lesser of 80% of after improved appraised value or 80% of cost.
- Debt Service Coverage: Minimum 1.2
- Loan Repayment: permanent mortgage, cash flow
- Collateral: First lien on financed property; personal or corporate guarantees will be required.
- Fee: 2 pts.
TO APPLY: Contact Loan Officer Anne Conners at 203-789-8690 or via email at Anne@gnhclf.org
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