Housing Services:
For-Sale Housing Development Loans

Summary of Predevelopment & Acquisition Loans

The Portland Development Commission, either directly, or through agreements with other lenders, provides financing to developers of housing, Mixed-Use Projects and Non-Profit Facilities to cover costs of project feasibility work, site control, or acquisition of properties prior to securing financing to complete the project. The following summary provides information on PDC's predevelopment and acquisition financing products.

1. Non-Profit Predevelopment Loan: The PDC Housing Department, together with the Enterprise Foundation (Enterprise), provides predevelopment financing for projects sponsored by Eligible Non-Profit Organizations through the Non-Profit Predevelopment Loan Program. The Non-Profit Predevelopment Loan funds are available to fund technical and professional services necessary to explore the project feasibility of housing serving Low or Moderate Income Households, Mixed-Use or Mixed-Income housing development. Predevelopment loans are not intended for the purchase of property, except for option payments. These loans are provided jointly by the PDC and Enterprise to Eligible Non-Profit Organizations.
   
   The interest rates of the Predevelopment Loan are either 0% or low interest or a blend, depending on the loan amount. Loans have a maximum term of 24 months, or the close of construction financing, whichever is less. Interest and principle payments are deferred until repayment. The portion of the loan funded through the Enterprise Foundation is secured.
   
   To inquire about either these loans, contact PDC at 503-823-3359 or contact the Enterprise Foundation directly at 503-223-4848.
   
   
2. PDC Direct Financed Predevelopment Loans: The PDC Housing Department provides direct loans for predevelopment activities to:
   
   
   • Projects located in Urban Renewal Districts which have Tax Increment Financing available for housing, and
   • Special initiative housing projects outside of Urban Renewal Funds, subject to available funds.

Loan funds are available to fund technical and professional services necessary to explore the project feasibility of rental housing, for-sale properties with multiple units or Mixed-Use developments that meet the programmatic objectives of the Urban Renewal Area or the special initiative of the PDC.

Further information on this product is not available at this time. In the interim, information may be obtained by contacting the PDC at 503-823-3359.

3. Non-Profit Acquisition Financing Loan: The PDC Housing Department, together with the Enterprise Foundation, offer Non-Profit Acquisition Financing Loans to provide financing for Eligible Non-Profit Organizations to fund the acquisition of property, other activities necessary to take title to property, or to fund a portion of the cost of a contract purchase. The property must be intended for use in the development of housing serving Low or Moderate Income Households, Mixed-Use or Mixed-Income housing.
   
   The interest rate of the Non-Profit Acquisition Loan is generally 6% annually, and has a maximum term of 24 months or the close of construction financing, whichever is less. Loans are secured by the Enterprise Foundation. The Enterprise Foundation may make its loan approval contingent on a repayment guarantee from the PDC, which would then require review and approval by both organizations.
   
   To inquire about these loans, contact PDC at 503-823-3359 or contact the Enterprise Foundation directly at 503-223-4848.
   
   
4. PDC Direct Financed Acquisition Loans: The PDC Housing Department provides loans to project sponsors to fund the acquisition of property for:
   
   
• Projects located in Urban Renewal Districts which have Tax Increment Financing available for housing, and
  
  
• Special initiative housing projects outside of Urban Renewal Areas, subject to available funds.

Loan funds are available to fund the acquisition of property, other activities necessary to take title to property, or to fund a portion of the cost of a contract purchase of property for rental housing, for-sale properties with multiple units or Mixed-Use developments that meet the programmatic objectives of the Urban Renewal Area or a special initiative of the PDC.

Further information on this product is not available at the time of publication of this manual. In the interim, information may be obtained by contacting the PDC at 503-823-3359.

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