Lending Products

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 provides flexible capital to meet rural housing development and preservation needs throughout the development process, including:

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.

Financing to acquire land, buildings or existing housing for development and preservation of affordable housing.

Site/land development, new single or multifamily construction or rehabilitation of existing housing.

Longer term capital for operating rental properties.

Flexible, revolving funding to support experienced housing developers move forward a pipeline of projects.

Targeted tools and products

HAC provides forgivable loans of up to $15,000 per unit through the U.S. Department of Housing and Urban Development’s (HUD) Self-Help Homeownership Opportunity Program (SHOP) to nonprofit developers for land acquisition and infrastructure improvements for the development of self-help homeownership housing units.

HAC makes 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.

The Housing Assistance Council’s Preservation Revolving Loan Fund (PRLF) and Rural Rental Housing Preservation Fund provide needed capital to preserve and rehabilitate USDA Section 515 and 514 rental housing units, HUD Section 8 properties and other rural affordable rental properties. In addition to financing, HAC provides technical assistance to nonprofits on transfers of Section 515 properties. Current owners of Section 515 properties who are interested in selling a property or transferring ownership to a nonprofit organization or nonprofits who are interested in acquiring a Section 515 property can reach out to Kristin Blum or Ainsworth Thompson.