Many lenders only see the increased risk of providing early stage capital for development. We see the chance to fundamentally alter the way healthy communities grow.
Pre-Development/Site Assembly (PRE-SAL) financing is available to developers for the development of affordable rental, for sale, and mixed-use housing. Loans can be used for acquisition, site assembly, stabilization, planning and soft costs.
There is a severe shortage of affordable housing throughout Community Growth Fund’s (CGF) lending footprint. Preserving and increasing income diversity, while retaining our long-term residents, is imperative for the health of strong, vibrant communities for all.
CGF’s Pre-Development and Site Assembly Loan fund expands the pipeline of affordable housing by providing the early-stage capital needed to advance these projects to construction. We understand the difficulties of financing affordable housing and can help your organization get your project off the ground.
The availability of flexible earlier-stage capital to help advance site control and project advancement (pre-development) has all but evaporated in recent years. Developers have reported having to scale back the number of projects they are working on at one time due to lack of early-stage loan capital. CGF provides the capital needed to allow developers to assemble sites strategically in their neighborhoods, and then pursue development financing and subsidy at a larger scale, as opposed to pursuing smaller deals with less community impact.
What we offer
- Pre-Development and Acquisition financing
- Loans up to $500,000
- Up to 36-month term, Interest only
- No Pre-Payment Penalty
- Lien on Project Real Estate
Who is eligible?
- Projects within 10 eligible counties in South Western Pennsylvania (Allegheny, Armstrong, Beaver, Butler, Fayette, Greene, Indiana, Lawrence, Washington, and Westmoreland) and all of West Virginia
- For Profit and Non-Profit Developers
- Government and Quasi-Governmental Agencies
- Joint Ventures
- Must contain affordable rental, for sale, or rent-to-own units
- Mixed-use projects are eligible
- At least 50% of financing must be used for the development of affordable units
- CGF can finance up to 100% LTV on acquisitions