MISSION & PURPOSE OF FINANCING
The mission of the Community Loan Fund is to provide flexible short-term financing for the development of affordable housing particularly, though not exclusively, in rural underserved areas.
INVESTMENT AREAS
The investment area consists of the following counties:
Barnes, Benson, Cass, Cavalier, Dickey, Eddy, Foster, Grand Forks, Griggs, LaMoure, Logan, McIntosh, Nelson, Pembina, Ramsey, Ransom, Richland, Rolette, Sargent, Steele, Stutsman, Towner, Traill, Walsh, Wells.
ELIGIBILITY
Borrower
Not-for-profit or for-profit owners of eligible properties for the purpose of:
- New Construction-multi-family rental properties
- Rural Rehabilitation- Rehabilitation of rural multi-family rental properties
- Urban Rehabilitation- Rehabilitation of multi-family rental properties in Cass or Grand Forks Counties
Affordability Requirements for residents
- New Construction—At or below 80% Area Median Income
- Rural Rehabilitation—At or below 80% Area Median Income
- Urban Rehabilitation—Mixed-income up to 120% of Area Median Income
Security
- New Construction—1st or 2nd Mortgage. Rural areas, LTV not to exceed 85%; urban areas, LTV not to exceed 95%
- Rural Rehabilitation—1st or 2nd Mortgage. LTV not to exceed 85%
- Urban Rehabilitation—1st or 2nd mortgage. LTV not to exceed 95%
LOAN FEATURES
Minimum Loan Amount $10,000
Maximum Term
- New Construction—up to 24 months
- Rural Rehabilitation—Up to 10 year term following completion of construction
- Urban Rehabilitation—Up to 10 year term following completion of construction
Fees
- $100 non-refundable application fee
- 1% origination, amount due at closing
Security
- Appraisal
- Environmental assessment (new construction)
- Insurance
- Title opinion
- Title (new construction)
- Liability
- Flood plain insurance
APPLICATION PROCESS
Community Loan Fund Application
Additional application documentation required, but not limited to:
- Organizational documents
- Project description
- Project schedule
- Project need
- Project budget/proforma
- Operational budget
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