Making an Impact: CAHEC at Work
July 1, 2016 – June 30, 2017

CAHEC Capital

CAHEC Capital

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”) developers.

Carryover Loans:

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 designed to assist with paying the costs needed to meet the 10% test requirements for a carryover allocation. Carryover Loans are intended to be a short-term financing alternative until the construction loan and/or tax credit equity is closed. Carryover Loans have a maximum loan amount of $750,000, including capitalized interest and fees, and have an initial term up to six (6) months.

Bridge Loans:

The Bridge Loan Program provides greater financing flexibility during periods of the development cycle 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 Loans have a maximum loan amount of $1.5 million including capitalized interest and fees, and have an initial term up to eighteen (18) months.

Predevelopment Loans:

The Predevelopment Loan Program provides assistance to nonprofit developers for expenses related to the planning of tax credit-eligible affordable housing developments. A nonprofit entity may borrow up to $100k, including interest and fees, with a limit of $50k per development. If a CAHEC-syndicated equity fund invests in the development, CAHEC Capital will forgive all accrued and unpaid interest and the loan origination fee.

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”) developers.

Carryover Loans:

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 designed to assist with paying the costs needed to meet the 10% test requirements for a carryover allocation. Carryover Loans are intended to be a short-term financing alternative until the construction loan and/or tax credit equity is closed. Carryover Loans have a maximum loan amount of $750,000, including capitalized interest and fees, and have an initial term up to six (6) months.

Bridge Loans:

The Bridge Loan Program provides greater financing flexibility during periods of the development cycle 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 Loans have a maximum loan amount of $1.5 million including capitalized interest and fees, and have an initial term up to eighteen (18) months.

Predevelopment Loans:

The Predevelopment Loan Program provides assistance to nonprofit developers for expenses related to the planning of tax credit-eligible affordable housing developments. A nonprofit entity may borrow up to $100k, including interest and fees, with a limit of $50k per development. If a CAHEC-syndicated equity fund invests in the development, CAHEC Capital will forgive all accrued and unpaid interest and the loan origination fee.