Predevelopment Loan Fund Program
HISTORY
One of the corporation's initial programs was to provide technical assistance and high risk non-interest predevelopment loans to nonprofit corporations in the greater Minneapolis metropolitan area for developing affordable housing. The projects included many large Sec. 8 rental units for low - income seniors, persons with disabilities or special needs as well as for families. A few of the first projects were developed and owned by GMHC until completed and 95% occupied and the risk reduced. These projects were then sold to the National Housing Partnership (NHP) (at the time the nation's largest owner of affordable housing) who also managed the buildings. Later a number of local nonprofit and community development corporations were formed that would develop and own rental housing units in the future. The local projects owned by NHP were ultimately purchased by various local nonprofit development corporations. This loan program has continued to the present day.
TODAY
GMHC provides technical assistance and high risk predevelopment (seed) loans to organizations to assist in the development of quality affordable housing. These loans cover expenses such as architectural fees, surveys, environmental and soil testing, land costs, consultants, etc., as well as bridge loans. GMHC also administers the funding during the predevelopment phase.
A large variety of housing is funded under this program including multifamily rental, home ownership, co-op housing, elderly housing, transitional housing and housing for special needs (for the disabled, persons with HIV/AIDS, chemical dependencies, mental illness, frail elderly, supportive housing, women and family shelters, etc.).