Lending

NeighborWorks Capital was created by NeighborWorks organizations (NWOs) to provide critical loan products that were not readily available in the marketplace. NC’s goal is to provide competitively priced, fixed-rate loan capital.

NC makes loans that generally provide NWOs with capital to support the development or operation of four types of projects:

  • Affordable rental housing projects, including new construction, acquisition, rehabilitation, and preservation, including re-capitalization of projects owned by NWOs;
  • Affordable homeownership projects, including new construction, acquisition, or rehabilitation;
  • Mixed use projects, involving affordable rental or for-sale residential units, and commercial uses; and;
  • Commercial properties, including retail, office and community facilities.

NC makes the following types of loans exclusively to NWOs (or projects in which NWOs have a dominant interest and, by exception, to other mission-based efforts):

  • Predevelopment
  • Interim development for acquisition, predevelopment, and improvements
  • Mini-permanent for:
      • acquisition and critical repairs of existing rental properties
      • property improvement, including the purchase and installation of renewable energy systems
      • acquisition of the general partner interest in low income housing tax credit properties

NC’s Lending Team underwrites loans and presents them to a Loan Committee, which is appointed by the board of directors and consists of five members, three of whom are NWO board members. Members provide representation from NWOs, CDFIs, and community development lending. The loan committee convenes regular meetings by conference call or in person approximately once every month.

Many CDFIs and loan funds originate loans on behalf of external investors, based on a strictly defined set of criteria, and they may also service the loans on behalf of those investors. NC’s approach is to raise loan capital from investors focused on communty development (banks, foundations, NeighborWorks America and others) and who are aligned with our mission and products and strong portfolio management. This gives NC the ability to underwrite a loan based on your project’s needs, not the investors. Learn more about our loan products or see our loan portfolio.