Recognizing the need to support affordable housing developments before they can obtain all necessary funding sources and start construction, OHCS created the Predevelopment program in 2024. Two loans fall under predevelopment:
- Project Feasibility Loan
- Predevelopment Loan
The purpose of the predevelopment programs is to support smaller, nonprofit, rural, and/or culturally specific developers in addressing costs associated with getting a housing project ready for development. These organizations often face barriers to developing affordable housing in their communities because of high upfront costs to get a project started to apply for funding.
Background
The Project Feasibility Loan Program (PFLP) assists eligible organizations in Oregon with early costs that may occur when trying to figure out if an affordable housing development project is feasible. The goal is help reduce risks associated with getting a housing project development ready. Many nonprofit, often culturally specific developers, have cited costs for determining if a prospective building site meets multifamily housing conditions as a barrier to developing affordable housing.
The Predevelopment Loan Program (PDLP) is to have a funding resource available for nonprofit and/or culturally specific developers who have historically faced barriers to accessing housing development resources due to high costs and smaller organizational capacity. These organizations often have less resources, staff, and subject matter expertise to get development projects ready in order to apply for funding. PDLP offers a resource for these organizations to address these barriers.
PDLP applicants may also pair this loan with Land Acquisition Program funds or funds for predevelopment activities through a Community Development Finance Institution (CDFI). Those working with a CDFI can initiative a collaborative loan process through OHCS or through the CDFI partner. All predevelopment loans must be repaid but loan forgiveness will be available on a case-by-case basis.
Community-based Agricultural Worker Housing Predevelopment Grants - $2.5 million: Nonprofit organizations that specialize in providing community-based housing to agricultural workers are also eligible to receive predevelopment funds in the form of a grant rather than a loan.
| $600,000 | | $5,168,925 | | $2,000,000 |
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Compliance Details
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Eligible entities
Project Feasibility loan
This loan is only available to small organizations whose average annual budget is less than $5 million over last three years. In addition, they must match one of the following criteria:
- Culturally specific organization
- Nonprofit, rural developer
- Federally recognized Tribal Nations in Oregon
Predevelopment loan
- Nonprofit organizations
- Housing authorities
- Federally recognized Tribal Nations in Oregon
Eligible loan uses
Project Feasibility loan
- Architectural and engineering services
- Costs associated with gaining site control
- Costs of survey
- Environmental testing and appraisals
- Financial modeling
- Financing and zoning applications fees
- Historical certifications and analysis
- Initial feasibility and market study
- Administrative costs associated with these uses
Predevelopment loan
Currently, loans will be offered at a 3% interest rate with payments deferred until closing of capital financing.
- Professional services – architectural, legal, engineering.
- Studies – market, environmental, traffic, land, zoning, Geotech, arborists, capital needs
- Fees – entitlement, permits, application
- Community engagement efforts
- Other costs that can be directly connected to getting a specific development project to OHCS’s readiness standard, as approved by OHCS