Who Can Borrow?
The Opportunity Resource Fund lends primarily to nonprofit 501(c)(3) or 501(c)(4) organizations with a stated mission of creating affordable housing. For-profit entities and local units of government may also be eligible. The Fund is a statewide organization, and provides loans throughout Michigan.
How Can Loan Dollars Be Used?
Loans are provided for all phases of affordable housing development and can be used for pre-development costs, construction, rehabilitation and acquisition. Projects may include the development of single or multi-family rental, lease-purchase, homeownership and cooperative living units. Loans may also be obtained for permanent financing and bridge loans.
Borrowers can include:
- Housing development corporations
- Cooperatives and trusts
- Social service agencies
- Credit unions
- Faith-based institutions
- Community development corporations
What Are the Loan Terms?
Generally, the Fund makes short-term loans of six years or less at interest rates of six to nine percent (6% – 9%). A two percent (2%) origination fee is charged at closing, and may be financed. Security is typically in the form of a real estate mortgage on the project itself, but may be on other property. All collateral shall be insured.
How Is the Fund Able To Make These Loans?
By utilizing a unique method of underwriting, the Fund successfully blends traditional due diligence concerns with an understanding of the atypical difficulties faced by nonprofit developers in the current market.
For more information contact Tim Strasz