Predevelopment Loan Fund
PREDEVELOPMENT LOAN FUND FOR AFFORDABLE RENTAL HOUSING
The New Jersey Redevelopment Authority received $10 million in Community Development Block Grant (CDBG) Disaster Recovery funds to create the Predevelopment Loan Fund for Affordable Rental Housing. The program provides a source of low-cost financing to help non-profit developers cover costs related to converting properties that are currently unsafe, underutilized or in foreclosure into affordable rental housing. All projects receiving financing will help to revitalize the community in which they are located and address affordable housing needs that were created or exacerbated by Superstorm Sandy.
The Predevelopment 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 are secured by a mortgage on the development site and/or other collateral satisfactory to the New Jersey Redevelopment Authority (NJRA).
Initial occupancy of the housing units developed under this program is restricted to households at or below 80 percent of Area Median Income for their county.
For additional information including Guidelines and applications click on the links below: