Nonprofit Housing Loan Program Description
Eligibility and Terms
Loan Type: Pre-Development, acquisition, bridge, construction, semi-permanent loans for affordable housing development or preservation projects. Eligible costs include land or building acquisition, holding period costs, environmental testing, appraisals, taxes, insurance coverage, legal, architectural and consultant fees.
- Nonprofit 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).
- Must have a demonstrated desire and commitment to engage with the community and respond to community concerns.
- 1-4 Family and Multi-Family Residential Properties
- Properties located in low-moderate income census tracts, with priority to properties that are part of a comprehensive community development or are 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.”
- Amount: $25,000 – $250,000+
- Interest Rate: range of 6-7% based on GNHCLF cost of funds and project constraints
- Term: up to 24 months/ 36 months for permanent
- Amortization: interest only for short-term loans; up to 20 years for longer term loans
- Fee: 1 – 2 pts.
- Security: First mortgage on subject property preferred, otherwise second position lien on property, corporate guarantees, cash collateral, Letters of Credit, and/or first or second position lien on other property owned by borrower or other collateral acceptable to Lender.
- Repayment Source: permanent financing (including acquisition or construction financing).
TO APPLY: Contact Loan Officer, Anne Conners at 203-789-8690 or via email at Anne@gnhclf.org
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