Construction Lines of Credit

Eligible Purposes: CDCapital provides financing for the acquisition and rehabilitation or redevelopment of distressed, abandoned and blighted properties and vacant land in New Orleans MSA and Southeast Louisiana, for the purpose of increasing the stock of affordable rental and homeownership housing for low-and moderate income households.

Eligible Borrowers: Nonprofit, for profit and quasi-public community development organizations.

Loan Size: $50,000 to a maximum of 25% of total fund capitalization.
Interest Rate: Interest rate targeted at 4% above cost of funds. Interest is payable quarterly, monthly or upon permanent financing of property.

Loan Term: Not to exceed 24 months; renewable subject to annual review.
Maximum Loan to Value: 90% of costs or after-completion appraised value, whichever is less.

Origination Fee: 1% of total amount.

Security: First or second mortgage with recourse to borrower.