We have asked for your feedback and we are listening! Our goal is to be responsive, flexible and timely. Also, in this evolving credit environment, NC's goal is to provide competitively priced, fixed-rate loan capital so that the borrower can predict their project costs.
Many loan funds originate loans on behalf of external investors, based on a strictly defined set of criteria, and also service the loan. NC's approach is to raise loan capital from investors (banks, foundations, NeighborWorks America and others), put it on our balance sheet, with a range of terms and underwriting criteria. This gives NC flexibility with NWOs to underwrite a loan based on your project's needs, not the investors.
For a brief overview of all of NC's Loan Products please review the following presentation.
NC's core loan products provide affordable and flexible capital for pre-development and acquisition of land and buildings for rental, for-sale and commercial projects. You can access each product's term sheet at the underlined product name.
PREDEVELOPMENT LOAN NC's Predevelopment Loan product is aimed at providing NWOs with funds needed to conduct early stage due diligence. Funds are typically used for environmental studies, market studies, appraisals, A&E expense, legal fees and earnest money deposits. Pre-development loan amounts can be up to $200,000 with a maximum loan term of 30 months. Loans are unsecured but made on a recourse basis to the borrower. INTERIM DEVELOPMENT LOAN
To bridge NWO projects from the early due diligence phase of a project and obtain site control of properties up to the point when construction or permanent financing closes. Funds are typically used for land and building acquisition, critical repairs and pre-development or other costs associated with securing construction or permanent financing. Interim development loan amounts may be up to $1.5 million with a maximum loan term of 36 months with a portion unsecured and can be subordinated. Since some projects will require more than NC's loan maximum we have co-lending relationships around the country and can assemble additional loan capital to assure a seamless, cost effective loan.
The NeighborWorks network collectively owns and manages almost 80,000 units of affordable rental housing. NC is pleased to offer four Mini-Perm loan products designed to address emerging rental preservation priorities amongst NeighborWorks organizations with their existing rental portfolios and acquisition pipelines with a focus on green and energy objectives.
For NWOs who have the opportunity to purchase a distressed rental projects that will require capital repairs and improvements to improve occupancy and stabilize operations. Loan amounts may be up to $1.5 million with a maximum loan term of 7 years and up to 95% LTV. Since some projects will require more than NC's loan maximum we have co-lending relationships around the country and can assemble additional loan capital to assure a seamless, cost effective loan. MINI-PERM LOAN - PROPERTY IMPROVEMENT For the preservation of existing NWO rental projects for general capital repairs and improvements, including green enhancements and energy saving features. Loan amounts may be up to $750,000 with a maximum loan term of 7 years. In collaboration with NeighborWorks America, NC will offer a grant to approved borrowers to complete a Green Capital Needs Assessment and purchase of energy monitoring software - supported by a grant from The Home Depot Foundation.
MINI-PERM LOAN -RENEWABLE ENERGY EQUIPMENT For the purchase and installation of renewable energy or energy saving equipment for existing NWO rental properties as well as NWO headquarters and commercial buildings to improve sustainability and reduce energy consumption. Loan amounts may be up to $500,000 with a maximum loan term of 7 years. In collaboration with NeighborWorks America, NC will offer a grant to approved borrowers to complete a Green Capital Needs Assessment and purchase of energy monitoring software - supported by a grant from The Home Depot Foundation.
MINI-PERM LOAN - GENERAL PARTNER INTERESTS For acquisition of General Partner Interests of non NWO-owned rental property financed with Low Income Housing Tax Credits. This is one of the only products of its kind in the affordable housing industry tailored to assist non-profits in the purchase of affordable rental properties from third-party General Partners who are looking for a streamlined and efficient approach to ownership transfer without a complete project recapitalization. Loan amounts may be up to $500,000 with a maximum loan term of 7 years.
If you have immediate questions please contact Mark Knight at 240-821-1651, ext204 or e-mail him atmknight@neighborworkscapital.org .
LOAN INQUIRY FORM
If you are interested in a loan using one of our six loan products, please fill out the Loan Inquiry Formand return to us by fax or e-mail. Our lending team will call you back to discuss your needs.
After you have spoken to our lending team about your financing needs and it fits with one of our six loan products you will be sent a Loan Application with requested attachments for completion.
© 2011 NeighborWorks® Capital