The Housing Fund, in conjunction with Metropolitan Development and Housing Agency, has established a Predevelopment Loan Fund to assist Nonprofit Housing Developers with predevelopment expenses for affordable housing projects in Davidson County.
Program Guidelines:
Borrower must be a nonprofit organization
Loan amount up to $35,000 for eligible expenses (see below)
Financial projections must support the likelihood that the project will be funded
For-Sale Housing must be affordable to households earning at or below 100% of MFI
Rental Housing must be affordable to households earning at or below 80% of MFI
Term up to 24 months
Repayment at construction loan closing
0% interest, 1% loan fee collected at closing
Draws paid from invoices for services
Eligible Predevelopment Costs:
Stage One
Cost for site control options
Engineering /Geo-technical Studies
Phase I Environmental Study
Survey
Architectural Services
Appraisal / Market Study
THDA Tax Credit Application Fees
Approved portion of third party Consultant Fee
Approved Attorney Fees / Title Search Fees
Stage Two
Cost Estimates, Project Audits, A & E Cost Review
Phase II Environmental Study
Land Division Costs
Utility Fees
Affirmative Marketing and Fair Housing Information