Revolving Construction Loan Gap Funding

Operations and Procedures

Revolving Construction Loan Committee: The committee is a subgroup of the Cabarrus County Housing Collaborative Permanent Housing Committee made up of local nonprofits, public, affordable, and workforce housing developers, lending
partners, private sector partners, and community members.

Committee Activities: Meet quarterly to review applications and make recommendations on approvals and denials. The committee supports alignment between nonprofits and other developers to produce attainable housing in Cabarrus County.

Fiscal Administrator: WeBuild Concord

Process

• Request for Proposals are solicited quarterly based on fund availability from community entities.
• Borrowers will pay a 1-3 percent flat fee at the end of the loan, depending on their IRS status as a nonprofit or for-profit entity, the amount of the request, and the length of time for repayment.(2)
• Funds and fees repaid will be returned to the revolving fund to support future housing projects and development activity, and leverage dollars.
• All funds will be leveraged across multiple attainable housing projects.

Eligibility Criteria

• Mission-aligned(3) nonprofit and private-sector applicants must demonstrate the ability to repay the loan within a year or less, unless other terms are negotiated and approved by the lender. Only very low- to low-risk developments are considered eligible.
• Funds must be directed to attainable housing units.
• Attainable units are defined as affordable and workforce housing.(4)
• Projects serving more high-need populations will be prioritized.

Other Considerations

• Efforts will be made to distribute housing projects across Cabarrus County.
• Scattered-site and mixed-income housing will be prioritized to refrain from concentration of poverty.
• Permanent attainable housing units are the highest priority.

Applications

Email us or call us at 704.784.0039 with any questions you may have.

1. 1. Permanently affordable housing models are community land trusts, housing cooperatives, and deed-restricted land covenants
   2. Repayment cycles are available in 3-month, 6-month, 9-month, 12-month, and 18-month increments
   3. Mission of providing permanently affordable and accessible housing to the residents of Cabarrus County
   4. Attainable Housing: Affordable housing (80% of Area Median Income or below) and workforce housing (earning between 80% to 120% of Area Median Income)