Investing FAQs

Bookmark and Share

Who do I contact to invest in the Greater New Haven Community Loan Fund?

To invest, contact Darcy Arcand, Development Manager at Greater New Haven Community Loan Fund, 171 Orange Street New Haven, CT 06510 at (203) 789-8690, or e-mail us for more information.

What is the Greater New Haven Community Loan Fund?

The Greater New Haven Community Loan Fund is a private, not-for-profit organization established in 1987 originally under the auspices of the Interfaith Cooperative Ministries as a means to provide low-cost capital and technical assistance to alleviate the critical shortage of affordable housing in the Greater New Haven area.  The Loan Fund supplies capital and technical assistance to community-based development projects to provide low-income affordable housing, stabilize and rehabilitate neighborhoods, and to support vibrant communities.

Who can invest in the Loan Fund?

The Greater New Haven Community Loan Fund accepts investments of $1,000 or more from individuals, financial institutions, foundations, religious organizations and others. Investment terms and rate are negotiated on a case-by-case basis and usually range from 0% to 3%. Though most investments are medium-term (1-5 years) in length, GNHCLF encourages investors to consider making long-term loans (up to 10 years).  Longer term loans at lower interest rates giveGNHCLF greater flexibility in packaging financing for affordable housing and community asset-building.

How will my principal and interest be paid back?

Generally, interest payments accrue monthly, and are paid to the lender quarterly. However, the lender can opt to receive interest on an annual basis or compound interest quarterly back into the principle thereby growing the initial investment. Unless otherwise specified, principal is repaid in a lump sum payment on the due date of the loan. Interest payments and principal repayment are mailed to an address designated by the lender. The Greater New Haven Community Loan Fund reserves the right of prepayment without penalty.

How is the loan secured?

The Greater New Haven Community Loan Fund is not insured; however the majority of loans made by the Loan Fund are secured through mortgages or deeds of trust on real property.  The lender’s legal claim is on the assets of the Loan Fund, not on the borrower.  Still, the Greater New Haven Community Loan Fund considers its close working relationship with its borrowers, as well as the provision of strong technical assistance on all projects forms of security. In addition, the Loan Fund has a sizeable permanent capital fund which, in addition to providing interest income for the operational expenses of the organization, also functions as a loss reserve. It should be noted that in over 23 years of operation, the Loan Fund has experienced a loss rate of less than one half of one percent and our investors have experienced no losses.

Will I know how my loan is being used?

The Loan Fund issues reports on its activities on a quarterly basis. In addition, upon specific request we will notify investors of the use of their funds.

How do I make an investment in the Greater New Haven Community Loan Fund?

You may initiate your investment in person, via the telephone, in writing or electronically. Please state the amount of money to be loaned, the length of time it will be available and the interest rate desired. We require the full legal name of the lender, mailing address and telephone number. If the lender wishes to identify priorities or make restrictions on the use of the funds, those must be clearly stipulated in writing. Contact Darcy Arcand, Development Manager, for more information.  Upon mutual satisfaction with the terms of the offer, the Loan Fund will draft a detailed loan agreement and promissory note for review by the lender. The closing of the loan can be achieved either in person, or through the mail. Click here to see a sample loan document.

May I opt to extend my loan?

Many lenders appreciate the opportunity to invest in community housing development and wish to renew or extend their loans and continue to support the Greater New Haven Community Loan Fund. Terms for loan extensions may be negotiated and amended.

Does the Loan Fund consider demand provisions?

The Greater New Haven Community Loan Fund will consider a demand provision for lenders whose financial circumstances are uncertain. A demand provision allows the lender to request, with an agreed upon length of prior notification, repayment of their loan principal prior to the due date of the loan.