OUR Vision HOUSES THE HOMELESS, TRAINS THE UNEMPLOYED, PROVIDES JOBS, HOMES, & FARMS FOR THE WILLING & ABLE.
FINANCING STRATEGIES FOR VETERAN COMMUNITY DEVELOPMENT
Our research has led us to the best resources for planning, design, and structuring of financing for the development of veteran and work-force family communities.
Working with local banks and credit unions, we rely on a mix of conventional commercial mortgages to help kick start our projects. Additionally, we will engage Multifamily Construction Mortgages including Fannie Mae (FNMA) Multifamily Mortgages, Freddie Mac (FHLMC) Multifamily Mortgages, Federal Housing Administration – FHA Apartment Loans, Commercial Mortgage Backed Securities (CMBS Financing), and Life Insurance Company Loans.
United States Department of Agriculture (USDA) Loans
The USDA helps create jobs and stimulates rural economies by providing financial backing for rural businesses and properties. Its primary purpose is to create and maintain employment and improve the economic climate in rural communities. USDA Loan proceeds may be used for working capital, machinery and equipment, real estate, and certain types of debt refinancing. This is achieved by expanding the lending capability of private lenders in rural areas and helping them service quality loans that provide lasting community benefits. This program represents a true private-public partnership.
Rental Production Program Loan
Rental Production Programs (RPP) provide long-term financing for rental developments that serve families earning 60% or less of the area median income. RPP loans are awarded through an annual competitive cycle that ensures equitable distribution among a states’ geographic regions and between metropolitan and urban areas. This loan is part of the application for Housing Credits. Once our developmenst are approved for federal Housing Credits, it is automatically considered for this program. Source: http://www.nchfa.com
Community Development Block Grant Program (CDBG)
In those regions with exceptionally high rates of homelessness and unemployed veterans, we will work with municipal community development professionals to craft projects conforming to HUD’s CDBG standards.
Historic Preservation Tax Incentives
The Federal Historic Preservation Tax Incentives Program encourages
private sector investment in the rehabilitation and re-use of historic
buildings. It creates jobs and is one of the nation’s most successful and cost-effective community revitalization programs. It has leveraged over $78 billion in private investment to preserve 41,250 historic
properties since 1976. The National Park Service and the Internal Revenue Service administer the program in partnership with State Historic Preservation Offices. Here is what we know about NC Historic Preservation Tax Incentives.
Tax-Exempt Bond FINANCING
In the event that one of our projects calls for working with local government or a public housing authority, a bond may be issued. Tax-exempt bond financing provides long-term, below-market financing for the construction and rehabilitation of affordable rental housing. Some bonds may be eligible for a 4% federal tax credit. Source: http://www.nchfa.com
Workforce Housing Loan Program
The Workforce Housing Loan Program (WHLP) is administered by each states Housing Finance Agency in combination with Federal Housing Credits. The request for this loan is part of the application for Housing Credits. When awarded WHLP funds, they are received as a 30-year deferred payment loan at 0% interest for a percentage of the rental property’s development cost. The maximum loan amount is based on income designations determined in the hosting county. Source: http://www.nchfa.com
HUD FUNDS AVAILABLE
Some of our projects will meet the rental demand of veterans in the HUD-VASH programs with vouchers. However, HUD development financing and grants are a last resort for our programs, simply because of the complexity of their administrative requirements. When possible, we will be employing Multifamily Accelerated Processing. 2016 Funds in the form of grants, may be found here and HUD lenders here.
Vets2Vets Regulation CROWDFUNDING PLATFORM
We are working with SitePiper.com on developing a regulation crowdfunding platform specifically for veteran ventures and real estate investment. This planned SEC and FINRA compliant web based software platform will allow non-accredited investors to purchase securities and real estate investments using the “crowfunding” model of small investments from mass on-line communities.