These short-term loans provide local units of government and other public organizations with the capital to conduct residential redevelopment with the intention to sell the property afterwards. All developers will need to meet loan underwriting requirements and provide sufficient security for the loans.
Award Schedule
Loan requests will be reviewed as submitted and, if approved, funding will be awarded after a satisfactory due diligence process and the execution of a loan agreement.
Repayment Schedule
Loans will be repaid with a lump-sum payment in accordance with the loan agreement schedule. Loans are intended to be repaid within 12 months or earlier, immediately following property disposition from the borrower.
Loan Rates
Loans must be awarded with the repayment of 5% interest. If agreed upon in the loan agreement with the borrower, the SLBA may lower the interest rate to 3% if the SLBA receives the 5/50 payment. The SLBA will charge additional interest for loans not repaid within 12 months, unless otherwise established in the loan agreement.
Loan Fees
The SLBA will not charge any fees associated with the Land Bank Housing Development Loan Program.
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