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NHTCDF's lending focuses on a particular niche: the preservation of the existing affordable housing stock and the provision of the early money critical to getting preservation developments off the ground. These loans are often the critical first step that makes the development and subsequent attainment of commercial financing possible.
NHTCDF provides early money by making two types of loans: 1) predevelopment and 2) interim development loans. Predevelopment loans allow feasibility, environmental, valuation and other studies prior to property acquisition. Interim development loans generally provide funds to acquire ownership of a property pending the often arduous process of obtaining permanent financing or fill a short-term gap in permanent or construction financing.
NHTCDF also offers special predevelopment and interim development loans to developers preserving affordable housing that is healthy and environmentally sustainable using green design techniques. The financing provided through NHTCDF's Green Affordable Housing Preservation Loan Program requires that non-profit developers work with green experts to determine how green elements can be incorporated in their project's design. These loans are offered at below market rates and a portion of the loan is forgiven based on the Borrower's good faith efforts to incorporate green design elements that are practicable for the preservation project.