The loan pool is part of the Enterprise Community Loan Fund, which issues loans to nonprofit borrowers and their partners to finance the acquisition of land, land assemblage or existing properties and related predevelopment and carrying costs associated with preparing sites for affordable housing development. Loans are disbursed for the creation of multifamily, single-family or supportive housing. Review the summary of capital structure, borrower term sheet, financial statement and guaranty guidelines. (PDF, 137K)
Atlanta Acquisition Pool is available to:
- Nonprofit affordable housing developers
- Joint ventures between nonprofit developers and for-profit entities in which the nonprofit has a majority ownership or management interest in the development.
At least one of the development partners must have proven housing development experience and demonstrate an ability to assemble all the financing required for their projects.
Joint ventures using the Pool’s loan capital are encouraged to best leverage each entity’s strengths and access to different types of equity and debt capital.
- 24 months, repaid from construction and/or equity
financing
- Interest rate between 6.0% - 7.0% fixed for the loan
term and set at closing
- 2% commitment fee
- Loan-to-value can be up to 120% of acceptable
collateral
- Borrower must provide a minimum of 4% equity into
the deal
- Collateral requirements: all loans must be secured by
a first mortgage lien on the property to be financed
or by other acceptable collateral
- Guarantees may be required of the respective borrowing entity.
Loan funds are targeted for affordable and mixed-income housing throughout the city of Atlanta. Special consideration may be given for development in the former Empowerment Zone neighborhoods. The zone includes the following census tracts:
| 8 |
|
33 |
|
55.01 |
| 17 |
|
37 |
|
55.02 |
| 22 |
|
38 |
|
56 |
| 25 |
|
43 |
|
57 |
| 26 |
|
44 |
|
63 |
| 28 |
|
46.95 |
|
64 |
| 29 |
|
48 |
|
67 |
| 32 |
|
49.95 |
|
|
The Pool requires borrowers to maintain affordability
standards enforced through a recorded land use restriction
agreement. Depending on the project location, certain
income requirements may apply. Please contact Enterprise regarding the specific affordability requirements.
Borrowers apply through Enterprise.
- Complete the Loan Application (Word, 157K) and appropriate Pro Forma for Rental or Homeownership properties (Excel, 213K)
- All documents should be completed and submitted in an electronic format on a CD along with a signed copy of the application.
- A $500 non-refundable application fee is required with the loan application. The application fee will be credited towards the loan origination fee if the loan is approved and closed. All checks should be made payable to the Enterprise Community Loan Fund, Inc.
The Pool offers a limited amount of technical assistance and
training at no cost to borrowers on sustainable green building
standards and supportive-housing funding and management.
Green building consultations will be provided by the Southface
Energy Institute to approved borrowers.
Robert Hammock
Senior Program Director, Lending
Enterprise Community Loan Fund
404.523.6060, extension 16
Email Robert
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