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For more information, contact:
Keiva Dennis
Director, NHTCDF
202-333-8931 x126
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Green Affordable Housing Preservation Loan Fund
Through the Green Affordable Housing Preservation Loan Fund, NHTCDF provides below market predevelopment and interim development loans to affordable housing developers who seek to incorporate green building techniques when rehabilitating existing affordable housing. Under the program, a portion of the loan will be forgiven when the developer demonstrates that they have incorporated practical, environmentally friendly design elements in the property's rehabilitation plan. The loans will help to transform deteriorating existing affordable housing into energy efficient, healthy homes for low income families and seniors.
The challenge of greening existing affordable housing begins in the early planning stages of the development, before construction begins. The development team must evaluate opportunities and create plans for incorporating energy efficient and sustainable building materials. These steps occur before public resources have been secured, requiring flexible predevelopment financing. By providing predevelopment and interim development loans, NHTCDF hopes to steer preservation developers to incorporate environmentally friendly elements into their designs so that they become an accepted part of affordable housing preservation.
Meeting the Green Preservation Challenge
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| | Aeon received an NHTCDF green predevelopment loan. |
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In the case of Har Mar Apartments in Roseville, MN, Aeon turned to the National Housing Trust for help in meeting their financing needs. Aeon received the first loan from the National Housing Trust Community Development Fund's (NHTCDF) Green Affordable Housing Preservation Loan Fund, to help preserve and make energy conservation improvements to 120 affordable apartments.
Aeon, an award-winning nonprofit developer in the Twin Cities metro area, is working with the Green Institute, the University of Minnesota's Center for Sustainable Building Research, Center for Energy and Environment, and other project team members to develop a sustainability plan for the buildings that includes energy efficient heating and cooling, energy star appliances, environmental remediation, and a more walkable site. NHTCDF's loan will help cover a portion of the costs in planning for these improvements.
"By providing Aeon this loan, NHTCDF is helping us meet our commitment to green building practices and conservation as well as preserve affordable housing in this community," said Aeon project manager Maureen Michalski.
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Product Details
Predevelopment loans fund initial feasibility analysis, appraisals, market studies, environmental studies, due diligence and design studies, etc.
Loan Amount: $110,000
Term: 12-18 months
Rate: Determined by NHTCDF loan committee
Interim development loans bridge the funding gap in acquisitions until more permanent sources of financing can be arranged.
Loan Amount: $110,000
Term: 18-36 months
Rate: Determined by NHTCDF loan committee
The design process in this program will involve the inclusion on the development team of a qualified professional with green design expertise who will conduct an energy and environmental design audit of the existing structure. The professional will provide a report detailing all reasonably includable green design elements that analysis indicates will have a positive financial payback within 10 years.
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