Guidelines for Funding

Applications for funding for both our Grant and Loan Programs are accepted and reviewed regularly by a committee of HMNE’s Board of Directors to determine whether a project meets criteria for funding. The committee bases their decisions upon a variety of factors, including income levels served, specific use of funds by the borrower, alternate funding available, ability to repay the loan if a loan is sought, the location of the project being funded, and the potential impact of the project on the community. Other considerations might include the number of units of housing being sought by the funding, the proposed quality of construction, and the availability of any services to the residents.

Criteria For Acceptance

Funding is restricted to that portion of the project dedicated to serving individuals and families earning below 80% of the area’s median income (“AMI”). Projects having 20% of the proposed units set aside for individuals and families with income below 50% of AMI and projects having 40% of the units set aside for individuals and families with income below 60% of AMI may receive priority consideration along with projects targeting revitalization of neighborhoods and communities. In some cases, grants may be extended to those projects that offer a unique or innovative approach to adding to the stock of quality affordable housing and/or that can demonstrate financial need.

Examples of Funding Requests

- Pre-development work including legal; title; architectural and engineering drawings; environmental study; and other site assessment work.
- Site control and acquisition.
- Bridge loans and mezzanine loans to be paid upon obtaining permanent financing.
- Loan time periods of between 6 to 30 months.
- A loan principal amount is variable depending upon the project scope and may range between $50,000.00 and $1,500,000.00.
- All loans are based upon acceptable due diligence and if costs are incurred, they are paid for by the borrower.”