Applying for a Loan

Available Financing
Pre-application Form          
Application Form

  Available Financing

Eligible Borrowers:
Community Land Trusts (CLTs), limited equity cooperatives, or other community-controlled or community-based non-profit organizations - i.e. 501(c)(3) or 501(c)(4).

Interest Rates: Between 6 and 9%. This range is adjusted periodically based on the RLF's cost of funds.

Fees: NO APPLICATION FEES! A closing fee of 1-2% of the loan amount.

Collateral

• First mortgage lien or first deed of trust with assignments of agreements affecting the real estate, where appropriate (rents, leases, occupancy agreement.) Subordinate financing is possible where a local financial institution offers acceptable first-mortgage financing, but for policy or other reasons cannot provide the full financing.
  
• Assignment of the receivable/source of repayment for bridge loans.
  

Loan types include:

• Construction Loan (Rehabilitation)

Projects: Affordable housing developments with special emphasis placed on those that are part of a land trust or are otherwise designed to be permanently affordable. Housing may be a cooperative, affordable rental, lease-to-purchase, or affordable for-sale housing.

Amount: No minimum; maximum per RLF loan policy*

Terms: From 6 to 24 months, based on a construction completion schedule; interest only monthly until completion, principal upon completion or sale of residences.

• Mini-Permanent Loan (Balloon)

Projects: Same as construction loan (rehabilitation)

Amount: Up to $500,000

Terms: 3 to 5 years with an amortization period of 10–30 years.

• Permanent Mortgage Loan

Projects: Same as construction loan (rehabilitation)

Amount: $100,000 to maximum per RLF loan policy*

Terms: Fully amortizing loans (determined during underwriting, a maximum of 30 years).

• Bridge Loan

Projects: Property acquisition or project financing, secured by real estate where an identifiable repayment source is acknowledged and assigned OR working capital secured by a committed source of organizational support (a grant or contract payment.)

Amount: Up to $250,000 for project/ financing secured by real estate OR
up to $100,000 for working capital secured by receivable (a minimum loan amount of $5,000.)

Terms: 6–12 months, based on projected receivable payment

• Facilities Loan

Projects: Construction and/or permanent financing of facilities for organizations that create affordable housing for people with lower incomes, with special emphasis placed on those that are part of a land trust.

Amount: $100,000 to maximum per RLF loan policy* 

Terms: Same as standard construction or mini-permanent loan products.

Line of Credit 

(construction, acquisition, rehabilitation, pre-development, working capital)

Eligible Borrowers: Community Land Trusts 

Eligible Uses: Any community land trust need for regular, recurring short-term capital; expected to be related to affordable housing (cooperative, affordable rental, lease-to-buy, or affordable for-sale housing) development (construction, rehab, acquisition, pre-development) or for working capital.

Amount: $10,000 to maximum per RLF loan policy*

Rates: From 6% to 9% fixed.

Fees:  NO APPLICATION FEES! A closing fee of 1% per year if renewed.

Terms: 12 months, renewable at ICE's discretion.

Collateral: Depending on use, assignment of public or private contracts or committed grants, or project-related subsidies and developer fees; first or second mortgages, etc.

Loan to Value: Requirements will range from 90% to 100% plus closing costs, plus 100% of committed subsidies, depending on the conditions outlined in the Master Loan Agreement.

*Call ICE's Lending Department for more details - 413-746-8660