CAHEC Capital, Inc. is an emerging, nonprofit CDFI that serves as the financing affiliate of CAHEC. The company promotes healthy, empowered, and sustainable housing opportunities for low- and moderate-income individuals and their families by providing flexible and affordable loan products to Low Income Housing Tax Credit (“LIHTC”) developments. CAHEC Capital, Inc. began lending operations in December 2015. Loans were previously offered by CAHEC in a similar form until the program was formalized with the incorporation of CAHEC Capital, Inc. Please read below for further information about our Carryover Loan, Bridge Loan, and Predevelopment Loan Programs.
For developers who intend to place a project having a reservation of tax credits with a CAHEC-sponsored equity fund, the Carryover Loan Program is a tool designed to assist with paying the costs needed to meet the 10% test requirements for a carryover allocation. The Carryover Loan Program is intended to be a short-term bridge loan until the construction loan and tax credit equity are closed. As such, carryover loans will be limited to $750,000, including interest and fees, and these loans will have an initial term up to six months.View Carryover Loan Term Sheet
The Bridge Loan Program provides greater financing flexibility during periods of the development process that are typically undercapitalized. The Bridge Loan Program allows developers to make progress on projects before tax credit equity is closed and can also be used side-by-side with a construction-to- permanent mortgage loan when subordinate debt is needed. Bridge loan size is determined based on loan underwriting with a maximum term up to twenty-four months.View Bridge Loan Term Sheet
Predevelopment loans are intended to provide a source of funds for nonprofit entities to pay for expenses related to planning tax credit-eligible developments for which CAHEC-sponsored equity funds would have an interest in providing investment capital. Examples of typical qualifying predevelopment expenses include market studies, consulting fees, preliminary architectural plans, site control, appraisals, surveys, soil tests, environmental assessments, legal fees, and application fees.
A nonprofit entity may borrow up to $100,000 including interest and fees, with a limit of $50,000 per application. If a CAHEC-sponsored equity fund invests in the development, CAHEC will forgive all accrued and unpaid interest and the loan origination fee.View Predevelopment Loan Term Sheet
In accordance with federal law and U.S. Department of the Treasury policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a complaint of discrimination, write to Department of the Treasury, Office of Civil Rights and Diversity, 1500 Pennsylvania Ave. NW, Washington, D.C. 20220 or call (202) 622-1160.