Predevelopment Loans

Eligible Purposes: CDCapital provides financing for the predevelopment, feasibility and site control 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 lower-and moderate income households. Uses may include environmental studies, consulting and legal fees, market analysis and related predevelopment costs.

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

Loan Size: $5,000 to $75,000

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; renewal subject to annual review.

Maximum Loan to Value: 100% (Pre-habilitation valuation, based on appropriate predevelopment budget.)

Security: Recourse to the borrower.