Construction Loans
Eligible Borrowers
Any community-based housing developer operating in the areas covered by Enterprise’s 15 concentration cities and other locations served by Enterprise affiliates.
Loan Uses
Construction loan funds may be used to fund any or all of the following typical costs related to the new construction or rehabilitation of affordable homeownership or rental housing: construction contract costs, construction contingency, design, engineering and permitting costs during the construction period, construction management fees, carrying costs and any special costs related to compliance with Enterprise’s Green Communities Criteria.
Loan Amounts
The Enterprise Community Loan Fund's construction loans are available in amounts of up to $3 million.
Interest Rate
6.50%.
Loan Term
Up to 36 months.
Loan Fees
$500 for loans up to $50,000. Two percent of the loan amount for loans over $50,000. For all loans, $500 due with loan application. The balance of the loan fee is payable at loan closing and can be financed.
Legal Fees
None. Included in loan fee.
Collateral Requirements
The Enterprise Community Loan Fund finances new construction and rehabilitation of affordable housing projects at up to 100% of the as-completed appraised value of the project. All construction loans are recourse loans to the borrowing entity.
Affordability Restrictions
The Enterprise Community Loan Fund provides financing for affordable rental housing projects that serve households with incomes at or below 60% of the area median income. For affordable homeownership projects, the Loan Fund provides financing that serves households with incomes at or below 80% of the area median income. Mixed-income projects, whether rental or homeownership, are also eligible.
Adherence to Green Communities Initiative Criteria
Borrowers of The Enterprise Community Loan Fund Green Construction Loans must meet all mandatory items contained within the Green Communities Criteria and meet enough of the optional criteria to meet the threshold scoring required for homeownership or rental projects.
Please refer directly to Enterprise's Green Communities Criteria for a detailed explanation of the mandatory and optional items. In addition to Loan Fund staff, Enterprise's Green Communities Coordinator will review construction loan requests to determine compliance with the required green criteria.
Steps for Applying for Green Communities Loans
- Review the Green Criteria
- Download the Loan Application Checklist (Word, 164K)
- Download the Loan Narrative Form (Word, 94K)
If you have questions about where to send this application or who to work with to underwrite a loan in your region please contact:
Michael Sloss
Vice President of New Products
Phone: 410.772.2496
Email Mike
