Predevelopment Loans

Eligible Borrowers

Any community-based affordable housing developer operating in the areas covered by Enterprise’s 15 concentration cities and other locations in the Enterprise service area is eligible.

Intended Use of Loan

Predevelopment loan funds may be used to fund any or all of the following typical costs related to affordable housing development prior to closing construction financing: architectural, civil engineering and landscape design fees, electrical and mechanical engineering fees, interior design fees, surveys, environmental phase one and follow-up environmental impact studies, traffic studies, erosion control plans, zoning work, legal and title fees, appraisal fees, loan fees, application fees for debt, equity and subsidy financing and the costs of engaging a green design specialist.

Loan Amounts

The Enterprise Community Loan Fund's predevelopment loans range from $50,000 to several hundred thousand dollars.

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.

Collateral Requirements

The Enterprise Community Loan Fund secures all of its predevelopment loans. Collateral can include a lien against the property to be developed (if owned by the borrower), liens against other real estate owned by the borrower/sponsor, pledges of cash accounts, pledges of development fees from other projects under construction or other collateral proposed by the borrower/sponsor that is deemed acceptable by Enterprise. All predevelopment 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, Enterprise 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 Underwriting Criteria

Borrowers of Enterprise Green Predevelopment Loans are expected to meet the guidelines detailed in the Green Communities Criteria. For “early” predevelopment loans that will be used to address site planning, civil engineering, building location and orientation, parking and transportation planning, these criteria include engaging at least one design or engineering professional who is LEED (Leadership in Energy & Environmental Design)-certified by the U.S. Green Building Council or has similar green design experience or qualifications recognized by Enterprise.

For predevelopment loans that will also be used to address building construction methods, materials and product specifications, all relevant criteria apply. Underwriting of Green Predevelopment Loans will include an assessment by an Enterprise Community Loan Fund officer and Enterprise’s Green Communities Coordinator, a design professional certified in environmental design and energy efficiency to ensure that the project as proposed substantially meets Enterprise’s Green Communities Criteria.

Steps for Applying for Green Communities Loans

  1. Review the the Green Criteria
  2. Download the Loan Application Checklist (Word, 164K)
  3. 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