Development Lending


The Housing Fund (THF) provides development and construction financing under varying terms and conditions for affordable housing and community development projects.  Since its inception, THF has lent over $48 million and has experienced staff in residential and non-residential development lending.  THF also has a variety of downpayment assistance programs for low to moderate income homebuyers (insert link) that can help developers sell their product.
Affordable Housing Financing is available to non-profit and for-profit developers acquiring and building or rehabbing projects ranging from a single-family detached home to multi-family homebuyer and rental developments with hundreds of units.
Under our Healthy Places Program, non-residential financing is available to non-profit and for-profit developers acquiring and building or rehabbing neighborhood-based commercial facilities in low to moderate income census tracts.  Covered facilities, include, but are not limited to, business facilities, community centers, non-profit facilities, health care facilities, schools, etc.
Loan CollaborationTHF is adept at partnering with other lenders in loan participation arrangements and works with all parties to create sustainable quality projects that are financially feasible for its borrowers and partners.
Financing Guidelines:

  •   Sale prices and rents must be affordable for low to moderate income families; or,
  •   Project must be located in a low or moderate income census tract (;
  •   Loan amounts up to 90% of cost or 80% of value, which is less;
  •   Repayment terms are flexible based on the needs of the project.

Financing Costs: *Interest rates and fees are subject to change

  •   Non-profit Developers Current rate:  Prime plus 1%; 1/2% fee
  •   For-profit Developers  Current rate:  Prime plus 2%, floor of 5.25%; 1% fee

Completed Loan Applications include:

  •   Statement of previous development experience;
  •   Borrower financial statements;
  •   Purpose of the loan and project location;
  •   Sources and Uses of funds for the project;
  •   THF requested loan amount;
  •   Loan repayment schedule or statement;
  •   Description of collateral to be used to secure THF’s loan;
  •   Project proformas/budgets (development and operating) and plans if available; and
  •   Term requested (length of loan).


For further information contact The Housing Fund at (615) 780-7000 and ask to speak with someone regarding development lending.  Free consultation and technical assistance is available with THF staff to assist potential borrowers with development and financing options. 

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