Predevelopment Loan Program
The initial decision to move forward to develop or rehabilitate housing springs from inspiration, but the successful completion depends on making good choices when getting the project off the ground. During the predevelopment process developers evaluate the feasibility of their project concept including site selection, financing, and capacity to develop, own and operate housing. The PLP program provides low interest loans for due diligence activities as well as site acquisition, application and permitting fees.
The PLP is administered by the Florida Housing Finance Corporation as a special program to provide the loans along with technical assistance in framing the development plan. Eligible borrowers include nonprofit organizations, local governments and public housing authorities. Once applicants are invited into the program they are assigned a technical advisor from the Coalition to visit the site, meet with the board and staff, and work on a development plan.
About the Program
The maximum PLP loan is $500,000 without site acquisition and up to $750,000 with site acquisition. Up to $500,000 can be used for site acquisition. The loan carries a 1% interest rate with principal and interest deferred until maturity. The PLP loan matures at either the time of closing the permanent or construction financing for multifamily projects, the sale of single family homes, or three years, whichever occurs first (see Chapter 67-38, Florida Administrative Code PLP Rule here).
Technical assistance is provided to guide the applicant in planning the development, including these tools:
- Development and Operating Budget
- Feasibility of site, financing and timeframe
- Operating pro formas
- Assembling the development team
- Selecting the most appropriate financing sources
Some eligible expenses include:
- Land Acquisition
- Title Searches
- Legal Fees
- Architectural and Engineering Fees
- Market Studies
- Permit fees
- Impact fees
- Site plan approval fees
- Environmental reviews and more