The Revolving Loan for Acquisition Program provides loans up to $300,000 to assist developers in the acquisition of land or land and buildings for the development of affordable housing projects. The loan term is 24 months, and repayment is deferred until the project’s permanent loan closing or the end of the term. The intent of this program is to enhance the ability of nonprofit affordable housing developers to compete in the real estate market.
Eligible projects include:
The total funding for this program is $700,000. The funds come a portion of the $12,000,000 affordable housing bond approved by referendum on November 6, 2001. Loans will have a 3% interest rate.
Any nonprofit agency that has filed for or received 501(c)(3) tax-exempt status from the U.S. Internal Revenue Service, and who is registered to do business in Maine, may apply for a pre-development loan. An applicant is limited to a maximum of two loans totaling not more than $500,000 at one time.
All applicants to the program must submit the information detailed on page 7 of the Program Guide, including a description of the project and evidence of site control. MaineHousing reviews applications in the order they are received.
Please note that an RLA commitment for a project is not a guarantee that a developer will receive construction or permanent financing for the project from other MaineHousing programs.
For more information see the Revolving Loan Fund for Acquisitions Program Guide, review the related links, or contact:
Bill Glover, Manager of Lending