Construction Loans
Pre-Construction Loans
OVERVIEW
Detroit Development anticipates the most borrowers will be small- to medium-sized developers, rehabbers, and contractors. We will also consider projects being developed by non-profit developers, including community development corporations and faith-based institutions with proven track records. Detroit Development will make Construction Loans into real estate development projects that can yield positive social impact in low- and moderate-income Detroit neighborhoods.
WHAT
WE
DO
Contractor Lines of Credit
CRITERIA, LOAN SIZE, AND TERMS
To qualify for a Pre-Construction Loan, projects should meet one or more of the following criteria:
Project is located in or adjacent to Detroit neighborhoods that are lower income
Create for-sale or rental housing that is affordable to low/moderate-income households in Detroit
Create homeownership opportunities for low/moderate-income households in Detroit
Create jobs for lower income Detroit residents
Strengthen access to community services for lower income Detroit residents
Strengthen commercial districts in predominantly low- to moderate-income Detroit neighborhoods
Otherwise economically or socially strengthen predominantly low- to moderate-income Detroit neighborhoods
Construction loan amounts range from $50,000 to $200,000
Terms lengths are generally 6 to 24 months
USE OF PROCEEDS
Pre-Construction Loans may be used for the following:
Infrastructure improvements
Construction of models
Façade improvements
Late-Stage Pre-Development Loans
OVERVIEW
Detroit Development will make investments/loans for pre-development or pre-construction purposes in affordable housing projects, multi-family rehab, and other projects including commercial developments that stimulate neighborhood revitalization. These loans are intended to fill the gap between early "soft" stages of pre-development (i.e., concept development expenses, permit expenses, infrastructure needs, etc.) and the point at which a project can qualify for construction financing. Detroit Development will make pre-development loans available to both for-profit and non-profit developers who have a track record and capacity, but lack of funds to proceed with the project and/or the balance sheet strength to leverage additional funding.
USE OF PROCEEDS
Late-Stage Pre-Development Loans may be used for the following:
Land acquisition
Architectural drawings
Environmental remediation
Purchase of materials prior to construction
Advance pre-sale marketing efforts