Predevelopment Loan Program (PDLP)

Purpose

Provide predevelopment capital to finance the start of low-income housing projects.

Assistance Type and Terms

Three percent simple annual interest short-term loans for up to two years.  Maximum loan amount for purposes other than site option or site purchase is $100,000.  The maximum amount committed to any one borrower at any point in time is announced in each Notice of Funding Availability (NOFA).

Eligible Activities

Predevelopment costs of projects to construct, rehabilitate, convert, or preserve assisted housing, including manufactured housing and mobilehome parks.  Eligible costs include but are not limited to site control, site acquisition for future low-income housing development, engineering studies, architectural plans, application fees, legal services, permits, bonding, and site preparation.  Priority will be given to developments which are rural, located in the public transit corridors, or which preserve and acquire existing government-assisted rental housing at risk of conversion to market rents.

Eligible Applicants

Local government agencies, nonprofit corporations, cooperative housing corporations, and limited partnerships or limited liability companies where all the general partners are nonprofit mutual or public benefit corporations.

Application and Attachments

Applications are accepted and evaluated and funds awarded on a continuous basis as funds are available.

Get Funding

Applications are invited through the issuance of Notices of Funding Availability (NOFAs).

Current NOFA

The PDLP program does not have a current NOFA. If money becomes available to fund the PLDP program in the future, NOFA information will be posted here.

Reporting Requirements (Asset Management and Compliance)

Upon completed construction of your project and closing of your HCD permanent loan, oversight of your project and loan is transferred to HCD’s “Asset Management and Compliance (AMC)” section.

Visit Asset Management and Compliance to find:

• Your reporting requirements
• Forms
• Additional resources
• Who to contact if you have questions

Program Forms

At this time, there are no general forms for the PDLP program on the website.

Management Memos

At this time, there are no PDLP Management Memos on the website.

Training and Technical Assistance

At this time, there are no PDLP Training and Technical resources on the website.