NCLT's Acquisition Loan Fund
NCLT has been successful in acquiring sites, and preserving housing/community facilities in a number of our projects—often with the extensive financial support of community members. In many cases though NCLT has been unable to acquire a site— most often because fundraising/subsidy sources (while effective) are slow to work and acquisition success in the bay area real estate market demands speed.
To help fund homes and community facilities using the CLT model, NCLT has begun a capital campaign to generate equity donations and privately subsidized acquisition loans.
Goals for the fund are twofold. One goal is to create a revolving capital fund that the NCLT can draw on as purchase and bridge funds for major acquisitions. A second goal is to provide long term subsidy financing that offers permanent below market rate interest to eligible projects. All loan and subsidy monies lent by the fund will be secured by project-specific real property.
The fund is expected to raise $5-$10 million dollars. These may be in the form of:
- Equity donations by charitable owners
- Outright property donations through charitable remainder trusts
- Line of credit/ collateral guarantees by individuals and institutions
- Below market rate interest loans and fund investments from individuals and institutions
- Outright grants
The fund will be professionally managed by an independent banking organization with experience in fund management. Discussions with several financial institutions are already underway to manage and/or house the fund.
To participate in the fund, please call (510) 548-7878.