Preservation Loan
This short-term loan provides funds to a qualified borrower to purchase an existing multifamily, affordable housing property. Qualified borrowers are typically in the form of a single asset entity with the sponsor providing a guaranty. The loan is designed to provide short-term financing to enable the borrower to purchase the property; renew Federal subsidy contracts; and assemble construction and/or long term financing.
The maximum Loan to Value (LTV) will be capped at 95% of the lesser of “hypothetical as is” market value, or “as is” restricted value (maximum 75% to for-profit borrowers). The loan will be secured by the property. NOAH loans will be in a 1st lien position.
Qualified properties will include projects with existing HUD Section 8 project-based assistance or Rural Development (RD) Rental Assistance, FHA or RD BMIR loan program, Section 42 tax credits, other state or federal subsidy programs.
Please note that access to state or local funding sources may be restricted, and that access to OHCS Housing Preservation Funds for gap financing is limited to existing subsidized properties with expiring HUD Section 8 project-based assistance contracts or Rural Development Rental Assistance contracts.
To discuss a program, please contact Preservation Director, Rob Prasch, at 503.501.5688 or