Local Initiatives Support Corporation (LISC) provides flexible predevelopment funding to developers involved in affordable housing. Here’s a breakdown: 

 Terms 

  • LISC predevelopment loans typically cover early-stage expenses for affordable housing projects, e.g., site acquisition, environmental testing and architectural fees; 
  • Loan amounts can vary but are typically between $50,000 and $500,000; and 
  • Interest rates and loan terms depend on the project and the developer’s capacity, but they are typically below-market rates with flexible repayment schedules 

Application Process 

  • Developers must submit an application to LISC, which includes a detailed project proposal, financial information and proof of developer capacity; and 
  • LISC typically works closely with developers throughout the application process, offering guidance and technical assistance. 

Deadlines 

  • Applications are generally accepted on a rolling basis, but it’s recommended to check with the local LISC office as timelines may vary based on funding availability. 

Eligible Developers 

  • Nonprofit and for-profit developers engaged in affordable housing projects are eligible; and 
  • Developers must demonstrate a track record of successful project execution and financial capacity. 

Eligible Projects 

  • Projects must be focused on affordable housing development, either for rental or ownership; 
  • Predevelopment funding can support multifamily rental housing, single-family homes and supportive housing; and 
  • Projects typically must align with LISC’s mission of serving low- and moderate-income communities. 

As the application process and terms vary slightly by location, find and contact your local LISC office here.