Mercy Loan Fund (MLF) provides capital to community-based affordable housing developers with financing needs that are unmet through traditional financing sources. In collaboration with its parent organization Mercy Housing, MLF provides housing for low-income families, seniors and people with special needs. MLF is certified by the U.S. Treasury Department as a Community Development Finance Institution (CDFI). In 2008, MLF made 12 loans totaling $21 million, financing 960 housing units for 2,020 residents.
MLF provides loans for the acquisition, construction, rehabilitation, predevelopment expenses, and permanent financing of affordable housing. Loans have ranged from $25,000 to $3.5 million, with an average term of 3.6 years. Some examples of Mercy Loan Funding include:
- Lines of credit to affordable homeownership programs, used to purchase and rehabilitate single-family homes for sale
- Predevelopment loans to assist with up-front costs associated with the acquisition and rehabilitation of an historic single-room occupancy apartment building for people who are single, disabled or living with HIV/AIDS.
- A gap loan to a residents' cooperative to purchase a 150-space mobile home park for seniors
- Bridge loans to 17 tax-credit projects in six states which have provided 600 units of affordable housing for low and very low-income families
- Loans that helped four tenants' associations purchase and convert their rental properties into cooperatives and condominiums.Loans for the acquisition, renovation and construction of four historic properties in an area of profound need, resulting in 158 new units of housing
- A construction loan to a non-profit organization that builds single-family homes. The homes will be sold to families earning less than 50% of area median income
MLF works with non-profit affordable housing developers who provide homes to a diverse group of people. Beyond simply serving low-income households (all residents have household incomes below 80% Area Median Income), these loans have assisted formerly homeless individuals, farm workers, single-parent families, senior citizens, the developmentally disabled, the physically challenged, the chronically mentally ill, ex-offenders, individuals recovering from substance abuse, refugees, individuals living with HIV/AIDS, poor working families, the elderly, veterans, the homeless and others with special needs.
Since making its first loan in 1985, MLF has provided funds to developers who have produced or preserved more than 16,100 housing units, providing quality affordable housing to more than 45,400 individuals in 33 states. MLF has made 409 loans totaling $169 million with funds provided by investors. Defaults since inception have been less than 0.15% of all loans, and none has resulted in the loss of investor funds. In 2008, MLF made 12 loans totaling $21 million, financing 960 housing units for 2,020 residents.
With a line of credit from Mercy Loan Fund, Mercy Housing Colorado (MHCO) developed an affordable home purchase program acquiring and reselling U.S. Department of Housing and Urban Development (HUD) foreclosed homes in the Denver metro area. The properties are made available at a discount to HUD certified nonprofits which can sell the homes at HUD restricted prices to income qualified buyers, targeting households at or below 80% of Area Median Income.
For many, itís an opportunity to be a homeowner for the first time in their lives. Such is the case with Thomas Vargas and Natalie Tapia and their three daughters, who purchased their first home in Commerce City, Colorado in July 2008.