Housing Development Loan Program Expansion

Michigan Department of Labor and Economic Opportunity sent this bulletin at 03/18/2022 10:36 AM EDT

Housing Development Loan Program Expansion

The above property at 739 Bates Ave. in Grand Rapids was funded through utilization of the Housing Development Loan Program.

The State Land Bank Authority (SLBA) is pleased to announce the expansion of eligible applicants for the Housing Development Loan Program to now include qualified developers. This group is the latest to join local units of government and other public organizations in Michigan who are eligible for loans to help develop residential properties with support from this SLBA program.

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.

How to Apply

Stay tuned for updated forms reflecting recent expanded eligibility to be released soon. Any land bank authority, local unit of government or other public organization
seeking funds from the State Land Bank Housing Development Loan program
can begin the application process to receive available funding. The application
can be found on the State Land Bank’s website at Michigan.gov/LandBank.
Submit a Letter of Interest by email to LandBank@Michigan.gov.

The mission of the State Land Bank is to create positive economic impact to Michigan communities by recycling land to productive use.

Michigan.gov/LandBank

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