A National Community Development Financial Institution (CDFI)Flexible Loan Capital Customized to Create Affordable Housing
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In downtown Anchorage, Alaska, the Adelaide Apartments are in high demand with a waiting list for vacant apartments. In this high-cost area, the 73-unit property has 71 single room occupancy (SRO) units that serve the needs of extremely low-income individuals who have limited resources and are moving out of homelessness. Subsidized with a Section 8 HAP contract, the apartments are restricted to residents with incomes below 30% of area median income (AMI). For the last 20 years, the Adelaide Apartments have been owned and managed by NeighborWorks Alaska (NWAK).
With the need for capital improvements and to support continued operations, NWAK came to Community Housing Capital (CHC) in 2016 for a $1.6 million loan to refinance the first and second mortgages and undertake capital improvements to support continued operations. CHC used a portion of its Capital Magnet Award to provide a reduced interest rate that supported those improvements and increased the operating income for the property by $6,000 per month. In 2019, the Alaska Housing Finance Corporation issued a commitment for a $1,337,296 loan, leaving a gap of $355,000. CHC used its pool of Capital Magnet Funds to fill the permanent refinancing gap with a low 1.5% interest rate loan.
NWAK currently owns and manages 830 multifamily units found in eight rental housing communities throughout Anchorage and 125 Single Resident Occupancy (SRO) units in two buildings housing previously homeless, the near- homeless or individuals in transition. It is also a Management Agent for an 83-unit portfolio of HUD-assisted units for the elderly and individuals who experience a disability in Anchorage, Fairbanks, and Kotzebue. In total, NWAK manages 1,050 units in nineteen diverse properties, providing quality affordable housing for over 1,800 Alaskans, including seniors, those who experience a disability, and those of limited financial means. All of the housing projects managed by NWAK provide a safe, stable, and quality place to call home.
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Massachusetts is now the third most expensive state for rental housing. The 2019 "Out of Reach" report by the National Low Income Housing Coalition concludes that a Massachusetts resident would need to earn $33.81 an hour to afford the fair market rent of a two-bedroom home or apartment without being considered rent-burdened.
In 2019, Nuestra CDC began construction at Bartlett B, a 60-unit building that is part of a five-phased development in Roxbury, Massachusetts, called Bartlett Station. Bartlett Station is a 9% LIHTC new construction project that was eligible for $300,000 of Capital Magnet funds (with a low, 1.5% fixed interest rate) from Community Housing Capital.
Until recently, the Bartlett Station site was an urban wasteland – a vacant, 8.5-acre former bus yard and brownfield site. The new Bartlett Station will be a vibrant district featuring both affordable and market-rate rental and homeownership housing, with a public events plaza, grocery store, shops, and interactive art area. Energy sustainability using green technology will make Bartlett Station a green and creative village that will include 323 new homes, including 129 for-sale homes and 194 apartments plus more than 54,000 SF of retail and commercial space. The homes will serve a target income mix of 60% low income, 15% middle income (up to 120% AMI), and 25% market rate.
More than a decade of planning went into the Bartlett Station development and will help to reduce the real estate affordability crisis in the area. In addition to new housing, the project will have significant livability and economic impact with a large public plaza of shops, art installations, and a year-round public market with an eclectic mix of shops, and various goods from artists, crafts vendors, and farmers. Monthly scheduled performances will round out the family destination along with inviting spaces to socialize and dine out at several local restaurants.
Nuestra Comunidad works to revitalize communities by transforming vacant and abandoned lots and buildings into quality, affordable housing, and commercial space that enable families and businesses to thrive. Since 1981, Nuestra Comunidad has been a leading developer of affordable homes in Roxbury and surrounding neighborhoods, having created or preserved over 800 affordable apartments and nearly 200 units of for-sale homes.
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A quality affordable home is the needed underlying support that facilitates all other community development goals. A quality, affordable home leads to improved community health, improved educational achievement, stronger local economy, reduced rate of homelessness, reduced crime, increased community resilience, and increased environmental sustainability.
Homeownership
Rental Housing Development
Operating Properties
Subsidy Programs
FHLB Atlanta AHP
Capital Magnet Fund
NMTC
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What is a CDFI?
Community Development Financial Institutions (CDFIs) are private-sector, community-based, financial intermediaries. CDFIs share a common goal: to foster economic opportunity and revitalize neighborhoods in low-income communities. CDFI Certification is the U.S. Department of the Treasury's recognition of specialized financial institutions serving low-income communities with a variety of structures and development lending strategies,
Who are CHC's borrowers?
Community Housing Capital lends exclusively to members of the NeighborWorks network. This coalition of over 240 community development organizations is chartered by NeighborWorks America which provides access to technical assistance, grants, and regular assessments of organizational strength and capacity. NeighborWorks network organizations provide a wide array of housing and other services to their communities including improved homeownership opportunities for low- and moderate-income families, financial education, rehabilitation of dilapidated properties, and the construction and preservation of affordable rental homes across the nation. Moreover, NeighborWorks organizations strengthen communities by offering on-site programs that include health and nutrition intervention, education services, and workforce development opportunities. They have proven track records for positive housing outcomes and have built-in mechanisms, such as formal and informal surveys for obtaining and incorporating feedback from the communities and the economically disadvantaged individuals they serve. Their boards of directors include multiple representatives of their communities. Learn More about NeighborWorks America.
Does CHC provide consumer mortgages?
No. Consumers are advised to contact their local NeighborWorks organization for homebuyer assistance.
Does CHC provide grants?
No. CHC provides predevelopment, acquisition (raw land and land with improvements) and construction loans, as well as permanent multifamily mortgages to the nonprofit housing developers of the NeighborWorks network.
Our organization is not part of the NeighborWorks network, can we borrow from CHC?
Only Chartered NeighborWorks® organizations and their affiliates may apply for a loan with Community Housing Capital.
How does our organization become a member of the NeighborWorks network?
Nonprofit community-based organizations that focus on community revitalization and the production of affordable housing can apply for membership in the NeighborWorks network. Each member organization benefits from grants, technical assistance, training and other resources provided by federally funded NeighborWorks America. Learn More
How do I apply for loan with CHC?
We encourage you to reach out to our loan team as soon as you have identified a need for financing. Sometimes, we can offer advice or suggestions to make a development proposal stronger or we may be able to propose ideas for other sources of funds. To make the lending process easier and faster for you, CHC does not require a formal loan application. Contact us at (404) 373-5662 for more information.
Does CHC have a minimum and/or maximum loan amount?
Our minimum loan amount is $250,000 (on a case-by-case basis we may originate a smaller loan). Our maximum loan amount is $10 million. Where a larger loan is needed, CHC can originate loans up to $20 million, by participating with other nonprofit organizations.
How long is the underwriting process?
Most transactions will require 30 to 60 days to underwrite and fund from the time all supporting documents have been received by CHC.
Where does CHC lend?
Nationwide