LOAN FUNDING
The Development and Preservation Fund provides long- and short-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.
General Guidelines
- Affordable housing development and preservation projects
- Located in the Greater Omaha Metro (Douglas and Sarpy Counties in Nebraska and Council Bluffs, Iowa)
- Loan Range: $200,000–$3,000,000
- Affordability requirements will apply.
- Loan guarantee requirements apply for for-profit borrowers.
- Origination fee of 1–2%
- Fixed interest rates currently provided at 1–2%
Loan Product Matrix
Click here for a PDF copy of the below loan types and terms chart.
| Types of Financing | Loan Amount* | Term of Loan | Repayment Terms | Collateral** |
|---|---|---|---|---|
| Pre-Development | Up to $1,000,000 | 24 months maximum | Flexible | Varies by project type |
| Acquisition / Bridge | Up to $3,000,000; $2,000,000 on Unimproved Land | 36 months maximum | Monthly Interest Only | Up to 90% Total Loans-to-Value |
| Construction | Up to $3,000,000; $2,000,000 on Unimproved Land | 36 months maximum | Monthly Interest Only | Up to 90% Total Loans-to-Value |
| Bridge (to cover shortfalls due to timing of receipt of specified funds) | Up to $3,000,000; $2,000,000 on Unimproved Land | 36 months maximum | Flexible | Up to 100% Total Loans-to-Value with Commitment for Funds being bridged |
| Perm | Up to $3,000,000; $2,000,000 on Unimproved Land | 25 years maximum | 25 year fully amortized principal and interest payments*** | Up to 90% Total Loans-to-Value |
*As a % of total project costs, cannot exceed pro-rata % of affordable units
**FPI will subordinate
***Option is available to include two years of interest-only payments at any time during the loan. Any principal balances deferred through interest-only period to be paid in full at maturity of loan. Deferment is based on project financials falling below 1.25 Debt Service Coverage Ratio. Deferment may occur at any time during the loan period with staff-level approval after financial review.
ELIGIBILITY
Applicant Eligibility
- For-Profit Developers / Owners
- Loans 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 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 underwriting.
LOAN APPLICANT RESOURCES
Supporting Materials and Links
- FPI Priorities – resident, project, and property characteristics
- GIS Mapping Tool – to identify QCTs and proximity to transit and employment centers
- Area Median Income (AMI) Limits Chart – effective June 1, 2024
- Pro Forma – sample 25-year and 18-year templates
- Business Debt Schedule – sample template
- Draw Schedule – sample template
- Real Estate Owned Worksheet – sample template
- Sources and Uses – sample template
- 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 frontporch@omahafoundation.org. We proudly partner with World Speaks for translation services, and Front Porch will cover the cost of pre-approved services during application periods.
