Impact Capital is excited to announce our new Preservation Loan Product, which will provide financing with terms up to five years, to help preserve affordable housing projects. (It should be noted we define “preservation” broadly, and includes efforts to preserve existing market rate buildings that provide rents at affordable levels) This product was developed as a response to the impending wave of affordable housing projects nearing the end of their required affordability period, and in danger of converting to market rate housing. This product offers flexibility to our borrowers, allowing them to combine multiple forms of financing, like acquisition, construction, and pre-development into one loan with the goal of preserving affordable housing.
Here are two examples of recently funded projects:
El Patio – El Centro de la Raza
Impact Capital provided $1.65 million for construction and predevelopment financing to El Centro de la Raza to rehabilitate an existing 14-unit affordable housing project located in Seattle. The project is undergoing renovations to address deferred maintenance issues, improve energy efficiency, and extend the project’s useful life. The loan will be repaid through El Centro fundraising efforts, and possible additional investment from public funders.
Kneeland Park – Mason County Housing Authority
Impact Capital provided a construction and predevelopment loan for Mason County Housing Authority’s (MCHA) Kneeland Park project to position it for a long-term refinance. Kneeland Park, located in Shelton, is a former tax credit project that was taken over by MCHA and is currently five years past its 15-year compliance period, but the property still has a deed restriction that requires it to provide affordable housing. This loan is being used to pay for expenses related to resolving deferred maintenance, in-unit repairs to expedite re-occupancy, roof and fencing replacements, security system and fire suppression upgrades, and other significant exterior improvements.
For more information on this new product, visit our website www.impactcapital.org/services/, or contact our Lending Team at firstname.lastname@example.org, email@example.com, or firstname.lastname@example.org.