Financial Services
LISC is a financial intermediary that provides loans and lines of credit, grants and recoverable grants, and equity investments to help community developers and other partners revitalize their neighborhoods. Real estate development includes: for-sale and rental housing; community facilities such as child care centers, schools, health care facilities, playing fields; and economic development projects such as retail and commercial buildings, and commercial corridor revitalization.
Loans
LISC offers financing during all stages of projects – predevelopment, property acquisition, construction, and permanent. We seek to strike the right balance between taking risks consistent with our role as a charitable lender, and recovering our capital so we can make funds available to future projects. Following are some examples of our loan products:
Pre-Development Loans
- To pay project predevelopment expenses for rental housing, for-sale housing, community facilities, and land banking.
- Up to three-year terms.
- Interest payable monthly or quarterly.
- Repayable in full at construction financing close.
Acquisition Loans
- To pay purchase and closing costs for rental housing, for-sale housing, community facilities, and land banking.
- Up to three-year origination period.
- A proportionate amount of non-amortizing loan repayable at construction financing close for each unit.
- Security required, with strong preference for real estate collateral. Interest payable monthly or quarterly.
Construction Loans
- To pay hard and soft construction costs for rental housing, for-sale housing, and community facilities.
- Up to two-year term and origination period.
- Non-amortizing loan repayable in full at permanent financing close.
- Fixed interest rate, set at closing, payable monthly or quarterly.
- Security required, with strong preference for real estate collateral.
Mini-Permanent Loans
- To provide permanent financing for rental housing and community facilities.
- Up to seven-year term, amortized over maximum of 12-year schedule, repayable in full on balloon maturity date.
- Fixed interest rate, set at closing, payable monthly or quarterly.
- Security required, with strong preference for real estate collateral.
Revolving Working Capital Loans and Lines of Credit
- To provide flexible working capital for a number of projects, to meet early project expenses or organization cash flow needs.
- Up to two-year term, 18-month origination period; revolving facility.
- Disbursements repayable at construction financing close.
- Fixed interest rate, set at closing. Standard closing conditions.
Grants
LISC provides technical and financial resources to help community development organizations become strong and stable neighborhood institutions characterized by effective and responsible fiscal management and capable of carrying out a range of community revitalization activities. Through LISC local program offices, we provide grant funding to assist organizations developing affordable housing, commercial and retail space, and community facilities, as well as other community development activities. Grants are designed and provided consistent with local program office strategies and local community development needs. Grants have typically come in the form of:
- organizational development grants that assist community organizations to improve administrative structures, management and financial systems, and real estate development and management capacities;
- strategic planning grants to cover costs associated with the creation of new programs that are important to an organization's overall mission and meet the needs of the community's residents; and
- project grants to help cover costs associated with real estate development that furthers neighborhood revitalization goals.
Equity
Through three affiliates (The National Equity Fund, The New Markets Support Company and the Community Development Trust) , LISC provides equity investments for projects that support community revitalization across the country, including affordable housing, commercial and retail buildings, and arts and community space.
Why Virginia LISC?
The community development industry in Virginia has few strong sophisticated nonprofit organizations that can put a single family, multi-family or commercial project together without assistance. LISC fills a critical role that very few can play in community development lending.
As a result of LISC’s track record for knowing how community development lending works, LISC receives calls from all kinds of customers (lenders, nonprofits, housing authorities, individuals, state and local government, and for-profit developers) asking for assistance. This assistance varies depending on the level of experience of the customer and the complexity of the project. Below are examples of technical assistance that Virginia LISC provides:
- Helping customer identify appropriate partners and engage members of their development team (architect, engineer, contractor, appraiser, market analyst)
- Help preparing and reviewing project budgets and in building relationships with other lenders and funders
- Assistance in structuring project financing
- Help group develop support for their project from local and state government entities and assist in removing barriers (community, zoning, political)
- Help banks understand the real estate transaction not only from a credit analysis but also from a community and strategic commitment to an entire neighborhood.
- Advocate for project
Virginia LISC welcomes the opportunity to work with high performing community development corporations, other nonprofits, housing authorities and for-profit developers who are sensitive to the special needs and requirements of the community development industry.
For complete and detailed information on Virginia LISC financial products, call the LISC office at (804) 358-7602 ext 17 or BDuVal@lisc.org. Eligibility requirements apply. Terms and Fees are subject to change. back to top