Construction Loan Guarantee Program

The Construction Loan Guarantee Program is designed to support the development of rental and for-sale housing up to 120% AMI.  The Oregon Legislature approved House Bill 3395 (2023) allocated $20MM to establish a fund to be used to guarantee the repayment of loans to finance the construction of housing subject to an affordable housing covenant for low- or moderate- income households. This legislative investment aims to support development in the current financial market. A summary of terms is outlined below.  A detailed term sheet can be found here.

Eligible Loan Types

• Construction loan with first lien position
  • Multifamily development
  • Manufactured home parks
  • Clusters of single-family homes (rental or for-sale)

Borrowers

• Nonprofit organizations
• Public ownership such as a local housing authority
• Federally recognized Tribal Governments
• For profit entities

Affordability

• No less than 50% of the units at 120% of AMI or below. This will be documented with a 10-year deed restriction recorded on title.

Guarantee Scope

• Maximum Guarantee term: 5 years. Guarantee will terminate upon payoff of the construction loan.
• Minimum Guarantee: $1MM

• Maximum Guarantee: $5MM

  • 90% for loans between $1MM and $3MM, and
  • 85% for loans between $3MM and $5MM.

Fee Structure

• UW fee of $10,000.
• One time Guarantee fee of 1% of guaranteed amount.
• Annual Servicing Fee of up to 50 bps of the guaranteed amount.

Reporting

• Monthly construction monitoring by a third party, reports to be shared with NOAH.
• Review of monthly draw requests.
• Monthly updates during stabilization.
• Borrower and/or Guarantor financials provided on an annual basis.
• Documentation of households meeting affordability restrictions.

Loan Requirements

• No limit on construction loan amount.
• Interest reserve will be required.

For more information about the loan programs

Contact .(JavaScript must be enabled to view this email address), Director of Lending

Solving Customer & Community Needs

In addition to providing an array of financial products for the acquisition and development of affordable housing, NOAH has also been a leader in shaping affordable housing policy in Oregon. NOAH regularly participates in think-tanks, work groups and policy bodies to develop solutions to some of Oregon’s most perplexing housing challenges, often resulting in new policy efforts or programs. NOAH is committed to participating in this work to build the tools needed to meet Oregon’s housing challenges.

If you need language assistance services, please contact info@noah-housing.org.
Si necesita un interprete de lenguaje info@noah-housing.org.