Landlords and Renters
What is the PDLF Program?
NJRA received $10 million in Community Development Block Grant Disaster Recovery Funds (CDBG-DR) to create the Predevelopment Loan Fund. The PDLF provides a source of low-cost financing to help nonprofit developers cover cost relating to the development of affordable rental properties that are currently unsafe, underutilized or in foreclosure. All projects receiving financing will help to revitalize a community and address development needs that are exacerbated by Superstorm Sandy.
The Loan Fund provides three-year loans of between $100,000 and $500,000 per project, at an interest rate that will not exceed 2%. The loans will be secured by a mortgage on the development site and/or other collateral satisfactory to the NJRA. Initial occupancy of the units developed under this program is restricted to households at or below 80% of area median income.
Landlord and Developers
Who is Eligible?
Nonprofit developers in good standing per the state’s annual registration, may apply. NJRA anticipates that borrowers receiving PDLF will also receive funding from other CDBG-DR programs as well as other public and private funding sources.
What will the program fund?
Loan proceeds may be used for a variety of predevelopment costs, including but not limited to project feasibility studies, legal fees, soil studies, site preparation, appraisals, and surveys. Predevelopment costs must have been incurred after October 30, 2012 to be eligible for financing.
Projects must help to revitalize a community that has been directly or indirectly impacted by Superstorm Sandy. The program targets New Jersey redevelopment areas, and per HUD requirements, will provide priority to eligible projects in the nine (9) most impacted counties as determined by HUD (Atlantic, Bergen Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union).
How do I apply?
Nonprofit developers wishing to apply for the PDLF Program can download an application on the NJRA website at www.njra.us. Applications will be accepted on a rolling basis until all funds are allocated.
Am I Eligbile?
Households whose income is at or below 80% of the area median income are eligible for the program.
How do I Appply?
Renters are unable to directly apply for assistance under this program, however, once the units are available for rent the apartment dwellings will be subject to the income qualifications.