PROGRAM BACKGROUND
The Development and Preservation Fund was created in alignment with recommendations provided by the Omaha and Council Bluffs Area Assessment of Housing Affordability, Needs, & Priorities report (2021). As identified in the assessment, the broad goals of the fund are to:

• Provide gap financing for the development of new affordable housing, including mixed-income rental housing, the creation of affordable housing in areas near job centers and transit, and transformative "catalyst" projects in neighborhoods undergoing broader revitalization efforts
• Provide needed gap financing to preserve and improve the quality of at-risk dedicated affordable rental housing, as well as "naturally occurring" affordable housing properties in deteriorating condition or at risk of conversion to market rate

The fund seeks to address the growing housing needs within the community by increasing the supply of affordable units, while simultaneously generating a range of positive social impacts such as improved housing stability, better health and well-being for residents, increased financial security, and enhanced educational outcomes.

The D&P Fund’s innovative structure allows it to offer significantly lower interest rates, making it an ideal partner for affordable housing projects that might otherwise face funding challenges. By prioritizing support for projects led by emerging or diverse developers, the fund broadens access to resources across the community. Loan payments are reinvested directly back into the fund, fostering a self-sustaining cycle of growth that continually expands its capacity.

The Development and Preservation Fund prioritizes projects or investments that:

• Maximize housing affordability
• Encourage innovation
• Invest in diverse developers or businesses
• Target strategic areas of investment
• Promote housing justice and equity
• Engage the broader community

LOAN GUIDELINES

The Development and Preservation Fund provides short- and long-term loans for affordable housing projects at 120% AMI or lower within the Greater Omaha Metro. Applications go through a multi-stage review process, including rigorous underwriting.

LOAN FUNDING OVERVIEW

• Affordable housing development and preservation projects
• Located in the Greater Omaha Metro (Douglas and Sarpy County Nebraska and Council Bluffs, Iowa)
• Loan Range: $200,000–$3,000,000
• Affordability requirements will apply
• Loan guaranty requirements apply for all borrowers
• Origination fee of 1%
• Fixed interest rates currently provided at 2–4%

ELIGIBLE BORROWERS:  Front Porch Investments (FPI) exists to provide a wide range of loan financing to developers (for-profit and nonprofit), community development organizations, Community Development Financial Institutions, and housing-supportive nonprofits. Impact Development Fund (IDF) administers the loans on behalf of FPI. Note: Submitting an application does not guarantee funding. All loans must maintain a minimum DSCR of 1.10x.

RATES AND FEES:  Rates are set at the time of loan approval. Loans are currently provided at a 2-4% fixed interest rate, and origination fees are 1%. 

*9% LIHTC Projects are not eligible for Permanent Loans
**The standard interest rate for mini-perm and permanent loans is 4%, but the rate may be decreased by .50% for each criteria met below:
1) 50% of units less than 60% AMI
2) 66% of units less than 80% AMI
3) Project will preserve or rehabilitate an existing building
4) Project affordability period extended to 30 years

ELIGIBILITY

Applicant Eligibility

• For-Profit Developers / Owners
• Nonprofit Organizations

Project Eligibility

• Located in the Greater Omaha Metro (Douglas and Sarpy Counties in Nebraska and Council Bluffs, Iowa)
• New construction, purchase/preservation of existing affordable housing, and rehab/adaptive reuse of an existing structure
• Rental and for-sale housing projects
• Mixed-use and mixed-income projects are eligible, although restrictions on the percentage of funding apply.
• Serves households at or below 120% AMI

APPLICATION PROCESS

Depending on the project, application timelines may vary.

1 | Pre-Application

If you're interested in applying for funding for your project, please complete the Loan Program Interest Form. Once submitted, our Loan Manager will schedule an initial call to discuss your project details, establish milestones, and outline application timelines and next steps.

The purpose of this pre-application stage is to ensure your project aligns with FPI's investment priorities, meets the eligibility requirements, and is ready for the next stage. Once this stage is complete, you will receive an invitation to formally apply and submit the necessary documents for underwriting.

2 | Application and Underwriting

Applicants will complete an application, including all necessary financial documentation to be considered for funding. Underwriting is completed in collaboration with our partners at Impact Development Fund. Our goal is to complete underwriting within 4-8 weeks of receipt of a final application.

3 | Review and Approval

Applications will be reviewed on a monthly basis and will go through a multi-stage review, including committee review and final approval by the Board of Directors. Funding decisions consider both alignment with FPI's funding priorities and the outcome of project underwriting.

LOAN APPLICANT RESOURCES

Supporting Materials and Links

1. FPI Priorities – resident, project, and property characteristics
2. GIS Mapping Tool – to identify QCTs and proximity to transit and employment centers
3. Area Median Income (AMI) Limits Chart – effective June 1, 2024
4. Pro Forma – sample 25-year and 18-year templates
5. Business Debt Schedule – sample template
6. Draw Schedule – sample template
7. Real Estate Owned Worksheet – sample template
8. Sources and Uses – sample template
9. Small and Emerging Business (SEB) Directory/Search – City of Omaha Human Rights and Relations

Language Accessibility

We have installed a plug-in for language translation on our website, positioned at the top right of this page. If additional language assistance or accessibility supports are needed to apply, please don't hesitate to email hello@frontporchinvestments.org. We proudly partner with World Speaks for translation services, and Front Porch will cover the cost of pre-approved services during application periods.