OHCS announced the opening of resources for the Permanent Loan Guarantee Program (LGP). The Loan Guarantee Program is intended to enhance the borrowing-ability of affordable housing developers by reducing the risk for lenders by guaranteeing a portion of the loan being used for the construction, development, acquisition, or rehabilitation of housing for persons with moderate-, low-, or very low-income.
Eligible entities include:
- Local governments;
- Local housing authorities;
- Nonprofit organizations;
- Federally recognized Tribal Governments; and
- For-profit businesses.
Eligible lenders include:
- State and federal-regulated banks;
- Credit unions;
- Savings and loans;
- Savings banks;
- Finance companies;
- Life insurance companies;
- Pension funds;
- Mortgage bankers;
- Public or private lending consortiums; and
- Government entities that offer loan funds.
If a guarantee needs to be utilized, the LGP operates as a revolving loan program, assisting with securing loans until a project is stabilized. Once the LGP loan is repaid, these funds can be reused by OHCS to guarantee loans for future projects.
OHCS allows developers to apply for guarantees at different stages but may only be utilized for permanent loans. Timing and loan size can also be adjusted based on market conditions.
Set Aside & Application Information
- At the beginning of every fiscal year, 50 percent of all available resources are restricted for use by Culturally Specific Organizations (CSOs) for a minimum of six months.
- If the LGP CSO allocation is not fully utilized after this six-month period, the remaining funding allocation will be made available to all eligible applicants.
- The remaining 50 percent of funds are available immediately to all eligible organizations for any eligible project.
- Submit applications via the Smartsheet.
Find more information or to apply, visit our website.
Contact Information
For further inquiries, please email Fatima Weir with the subject line: LGP Resource.
