technical assistance and flexible below market interest financing for
predevelopment activities, the Predevelopment Loan Program (PLP) helps
nonprofit and community based organizations, local governments, and public
housing authorities plan, finance, and develop affordable housing. Eligible
organizations may apply for a loan of up to $750,000. The loan carries a
non-amortizing one to three percent interest rate, with principal and interest
deferred until maturity. The loan generally matures either upon the closing of
construction/permanent financing or three years after the original PLP loan
closed, whichever occurs first.
PLP loans may be applied toward
costs such as rezoning, soil tests, engineering fees, title searches,
appraisals, feasibility analysis, legal fees, audit fees, earnest money
deposit, impact fees, insurance fees, commitment fees, administrative costs,
marketing expenses and acquisition expenses. These activities must be part of a
nonprofit or governmental organization's efforts to develop housing for low
income households. Specifically, rental developments must set aside 20 percent
of its units for persons earning 50 percent or below of area median income
(AMI). Homeownership developments must set aside 50 percent of their units
for persons earning 80 percent or below of AMI and the other 50% to persons
whose income does not exceed 120% of the AMI.
Once a loan application is
approved, the applicant receives an invitation to participate in the PLP
program and submits a $600 commitment fee. Florida Housing staff will then
assign a technical assistance provider to work with the applicant on developing
strategies for securing construction and permanent financing. The applicant is
allowed six months to complete the development plan, which is reviewed, and the
loan request is submitted to Florida Housing's Board of Directors for approval.
If approved, the applicant
submits a final $600 commitment fee, and if funds are available, the loan is
granted. If the applicant is successful in obtaining construction/permanent
financing, the PLP loan is due upon closing of the permanent loan. The
applicant will receive a credit for the $1,200 paid in commitment fees.
There is an additional $100 application fee required at the time the
application is submitted. Applications are accepted on an ongoing basis.