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Josh Earn
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Predevelopment and Interim Financing

The National Housing Trust provides loans through the National Housing Trust Community Development Fund (NHTCDF) to overcome a major obstacle facing affordable housing preservation: the lack of predevelopment and interim financing available to mission-driven affordable housing developers.

NHTCDF is the only certified nationwide Community Development Financial Institution (CDFI) exclusively dedicated to providing predevelopment and interim financing to preserve and improve affordable homes.

NHTCDF has helped to preserve more than 8,660 affordable apartment homes and made loans totaling over $22 million.

Interested borrowers can complete the Inquiry Form below to find out if you are eligible for support from NHTCDF, or complete the full application.

Twining Terrace Cooperative: On the Path to Preservation

Celebrating approval of NHTCDF loan.
After 25 years without significant renovations and major building systems in disrepair, the residents of Twining Terrace Cooperative in Washington, D.C. realized they needed to take action to save their homes. But before major work could even begin, the cooperative association needed to develop a comprehensive construction plan that included engineering assessments, appraisals, contractor bidding, and many other predevelopment needs. The problem: Taking these steps cost money that the cooperative did not have on hand. In response, they turned to the National Housing Trust for help.

On May 16, the Twining Terrace Cooperative Association and NHTCDF, in partnership with the Enterprise Community Loan Fund, closed on a $475,000 loan to cover predevelopment expenses.

With the Trust's predevelopment money in hand, residents can now pursue substantial renovations that will improve their living environments. Joyce Smith, president of the Twining Terrace cooperative association, summed up the importance of the planned repairs: "We have remained in existence this long due to the grace of the Almighty, an excellent Board of Directors and the knowledgeable advisors we have had. Twining wishes to remain an operational housing cooperative for many, many, more years and this renovation project we are undertaking will keep [Twining] ongoing."

Product Details:
Loan Maximum: Predevelopment: $50,000- $800,000; Interim Development: $50,000-$800,000 

Term of Loan: 12-60 months, interest payable quarterly
Repayment: Predevelopment: at permanent financing or termination of project; Interim Development: at loan maturity date.
Rate: Below market rate set by NHT Loan Committee.
Fees: 1.5% origination fee; subject to a $500 minimum.

Security: Borrower must guarantee. 
Eligible Borrowers: Nonprofit or Limited Partnerships with a nonprofit managing General Partner.
Experience: Demonstrated history of successful completion of similar projects and organizational capacity to complete project. 
Eligible Projects: Existing multifamily housing. Must demonstrate affordability.
Eligible Purposes: Approved predevelopment expenses; bridge financing; other approved activities.