Resource Details

Housing

Housing Assistance Council’s Loan Fund

HAC’s loan fund provides low interest rate loans to support creation of subdivisions and new single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. The loan fund also supports preservation and rehabilitation of existing affordable housing including USDA RD Section 515 and 514 units, HUD-subsidized housing, and naturally occurring affordable housing. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing.

HAC’s revolving loan fund provides vital capital to rural housing developers of all types: community-based, nonprofit organizations, housing development corporations, for-profit developers, self- help housing sponsors, farm worker organizations, cooperatives, land trusts, Indian tribes, public agencies and units of local government. HAC works with experienced housing developers and new developers embarking on their first housing development. HAC balances careful underwriting and meaningful collateral with flexibility and an understanding that a rural community’s best potential housing developer may begin without significant housing development experience.

HAC funds are currently available to non-profit organizations and public entities as low as 4.75% interest (higher rates may apply to for-profit borrowers).

Eligibility

HAC Loan Funds are available to affordable housing developer - nonprofits and for-profit organizations; not individuals.

HAC invests in communities that are Rural by FHFA Duty to Serve Rural Definitions or USDA Housing Programs Eligibility.

Top Benefits

  • Pre Development: Early-stage capital for architectural and engineering, appraisal, studies, and other expenses incurred in determining project feasibility and advance a project from an idea to construction.
  • Acquisition: Financing to acquire land, buildings or existing housing for development and preservation of affordable housing.
  • Construction: Site/land development, new single or multifamily construction or rehabilitation of existing housing.
  • Permanent/Mini-Perm: Longer term capital for operating rental properties.
  • Line of Credit: Flexible, revolving funding to support experienced housing developers move forward a pipeline of projects.
  • Self-Help Homeownership Opportunity Program (SHOP) Forgivable Loans: Forgivable loans of up to $15,000 per unit through the U.S. Department of Housing and Urban Development’s Self-Help Homeownership Opportunity Program to nonprofit developers for land acquisition and infrastructure improvements for the development of self-help homeownership housing units.
  • 0% Self-Help Housing Site Acquisition and Development Loans: 0% loans, up to $15,000 per unit for SHOP-eligible expenses on self-help sweat equity housing developments when forgivable loan funds are not available or when additional funds are needed. These loans are not forgivable but are available on extremely favorable terms.

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