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Acquiring suitable land for the affordable housing development in the City of Atlanta has become an increasingly daunting challenge largely due to the rapidly escalating land values in many neighborhoods that once supported the development of of low to moderate income families. The City of Atlanta, through the Housing Opportunity Bond Program, has faced this challenge head on by committing $5 million to Enterprise Foundation's land assemblage pool. These funds will be combined with $25 million of capital raised from private investors to provide financing to nonprofit developers as they seek to assemble land for future development of affordable housing within the City of Atlanta.
Financing may be applied to acquire land and pay the costs of demolishing improvements, and otherwise clearing such land.
Eligible Applicants:
- Non-profit developers
- For profit developers working in partnership with non-profit organizations
Eligible Properties Must:
- Be located in the City of Atlanta
- Serve a population at or below 60% of AMI for rental projects, with a minimum of twenty percent (20%) of the units set aside for this population
- Serve a population at or below 115% of AMI for Homeownership Projects. For-sale units must be sold to families of two or less not in excess of 100% of AMI and families of three or more not in excess of 115% of AMI with purchase prices less than $252,890 or current 203 FHA limit.
- Provide for long-term affordability provisions of 15 years or more for rental and upon sale for homeownership
Eligible Loans:
- Will finance the acquisition of the land, land assemblage and related predevelopment and carrying costs associated with preparing the site for affordable housing development
- May be used for rental or homeownership development and will have first lien mortgages as collateral
- Will only be made to borrowers that have development plans that meet the established affordability standards
- May finance the following:
- Land Acquisition
- Purchase option on contract deposit
- Capitalized interest
- Appraisals
- Architectural and engineering fees
- Legal Fee
- Zoning and title work
- Surveys
- Environmental assessments
- Market Analyses
- Tax credit applications and other financing fees
- Must provide for loan principal to be repaid from the proceeds of construction financing
- Will generally be made with terms of up to 36 months
- Will have an interest rate between 6.0% and 7.0% fixed for the loan term
- Will be filly recourse to the borrower(s).
Implementation
The loans will be received, underwritten, approved, and serviced by Enterprise Community Loan Fund (ECLF) and issued by the Enterprise Community Loan Fund (ECLF). Loan applications will be received and underwritten through Enterprise's Atlanta office.
All project loans will be underwritten using Enterprise
Loan Underwriting guidelines and policies inclusive
of third party independent appraisals and environmental
phase one reports. To visit the Enterprise Foundation
website for more information click
here.
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