VHFA's Development Department has launched new loan programs made possible by the MacArthur Foundation.
Our new pre-development loan program serves preservation projects. Participants are required to make monthly interest payments, with principal due at construction closing.
Also new are equity bridge loans and energy/capital improvement loans. Both are short-term loans — up to three years — designed to facilitate preservation transactions. Interest is payable monthly; principal due on maturity.
Equity bridge loans delay pay-ins from equity investors, increasing a project’s net yield. Energy/capital improvement loans address immediate capital needs, such as items causing a failing REAC score for a Section 8 development.
The Agency's pleased to be able to provide these new loans after having to suspend our Ventures pre-development loan program in December 2008, due to the global financial crisis.
Other development news
VHFA has also adopted new appraisal standards, and now offers tax-exempt bond funds at 5.71% with a 30-year team.
For details, visit VHFA's Development Department on the Web, or contact Director of Development Joe Erdelyi.