Putting together a complete financing package for any developer of Affordable Housing Tax Credit projects can be a challenge, but once in place it is anticipated that things will move forward with only minor hitches. That's what developer Community Development, Inc. (CDI) thought they had, but when their project, North Creek Apartments in Post Falls, Idaho was complete and CDI approached the financial entity about conversion to a permanent loan, the entity expressed surprise that it had provided a letter of interest and chose not to underwrite the deal and provide a permanent loan. The CDFI received the call from the developer asking if we would consider stepping in to help. Having provided the financing on two other CDI projects and completing a thorough review of the project, the CDFI approved $1,325,000 permanent financing for this 55 unit multi-family affordable housing project in northern Idaho.
Using some of the Calvert Foundation dollars to fund this loan, the CDFI also was able to bring in another new investor, Mountain West Bank, who agreed to participate in 50% of the loan. From the first call early in May the CDFI was able to close and fund this project within two months, allowing the developer to breath a sigh of relief and begin to move on to the North Creek Apartments Phase II.