Neighborhood Lending Partners

Products & Services

Multi-Family Rental: Construction/Rehabilitation

This is a product funded by the Member Loan Pool where NLP is also providing the permanent financing. With NLP acting as the lender for both the construction/rehabilitation phase and the permanent phase, there is only one loan, one loan fee, one loan closing, and one lender. This product is intended to be utilized when new construction and/or major rehabilitation is involved and multiple loan funding's is the best method of disbursement. Multi-family rental properties are properties with at least five rental units.

The primary loan structure parameters are presented under Lending Guidelines. The following items are specific to the Construction/Rehabilitation Loan structure.

  • A loan processing fee will be charged for each disbursement, ranging from $200-$300.
  • The loan shall be structured to include an interest reserve and possibly an operating reserve.
  • All loans approved for rehabilitation may be required to have a contingency fund equal to 10% of all costs relating to the rehabilitation.

Prior to converting from the construction/rehabilitation phase to the permanent phase, the property must meet minimum leasing and debt service coverage requirements, typically tied to occupancy standards, break-even performance and continued expectation of achieving the required minimum debt service coverage upon stabilization.

Back to Top ⇑

Multi-Family Rental: Permanent Financing

This is a product funded by the Member Loan Pool. Multi-family rental properties are properties with at least five rental units.

The primary loan structure parameters are presented under Lending Guidelines. The following items are specific to the Permanent Loan structure.

  • Loan terms can be obtained up to 30 years, but must be pre-sold. All pre-sold loans with a loan term greater than 15 years will have a loan condition that the loan term will be reduced to 15 years if the sale does not close.

Prepayment premiums will follow the Fannie Mae Yield Maintenance formula when the interest rate adjustment period exceeds 5 years, or if the loan is to be sold in the secondary market. For interest rate adjustment periods of 5 years or less, it will be a predetermined percentage of 1%-3%, based on the remaining years in the adjustment period.

Back to Top ⇑

Real Estate Based Economic Development Loans

This is a product funded by the Member Loan Pool. Properties located in empowerment zones, enterprise zones, low and moderate-income neighborhoods, or other areas targeted by local governments for redevelopment, or properties that house non-profits and/or where the non-profits provide services would receive favorable consideration. Approved property types include commercial, retail, and industrial with preference for retail and mixed-use properties (i.e., includes residential units).

The primary loan structure parameters are presented under Lending Guidelines. The following items are specific to the Economic Development Loan structure.

  • Loan types available for this plan include construction, rehabilitation, and mini-perm loans with similar structures as provided for the multi-family program.
  • Favorable consideration would be given for leases to a service provider when such service provider offers services that enrich the community. There may be commercial tenant/business operation restrictions.

The prepayment premium would be structured as presented in the multi-family permanent loan program.

Back to Top ⇑

Single Family A&D and Construction Loans

NLP offers financing for the acquisition, development and construction of single-family housing for developers and builders. The program offers one loan structure for the acquisition and horizontal development of the lots (Lot A&D) and two loan structures for the construction (vertical development) of the homes (revolving and non-revolving lines of credit). With these structures, the financing needs for lots, detached single-family homes, condominiums, and attached town homes can each be properly addressed. All properties must provide affordable housing based on the restrictions set forth by the local government that has provided a local subsidy for the project, if any, or by NLP's standard affordable restrictions when there are no government subsidies being used. There must be at least five residences financed under the program.

The primary loan structure parameters are presented under Lending Guidelines. The following items are specific to the single-family program.

  • The loan structure for the construction of detached single-family residences would be approved as a revolving line of credit.

The loan structure for the construction of condominiums or attached town homes would be approved as a non-revolving line of credit.

Back to Top ⇑

CDFI Loans

This is a product funded by the CDFI Loan Pool. All properties financed by the CDFI Loan Pool must provide affordable or special needs housing based on the following parameters.

  • At least 20% of the units must be either a) occupied by households earning not more than 50% of the area median income for the appropriate MSA or county, or b) serve one or more of the following special need populations: the elderly, the disabled, farm workers, large families, single parent households, individuals in substance abuse recovery programs, individuals that are chronically mentally ill, and individuals requiring assistance in living, or
  • At least 40% of the units must be occupied by households earning not more than 60% of the area median income for the appropriate MSA or county, or
  • At least 51% of the units must be occupied by households earning not more than 80% of the area median income for the appropriate MSA or county.

In addition to loan commitment approval by the respective NLP loan committee, it is also subject to approval by the contributing government-match loan provider. Currently, the CDFI Loan Pool government match loan providers are:

  • City of St. Petersburg
  • Hernando County
  • Highlands County
  • Hillsborough County
  • Pasco County
  • Pinellas County
  • Polk County
  • Sarasota County
  • Sumter County

The primary loan structure parameters are presented under Lending Guidelines. The following items are specific to the CDFI Loan structure.

  • Loan types available for this plan include construction, rehabilitation, and permanent loans.

There is no prepayment premium associated with the CDFI Loan Pool.

Back to Top ⇑

SHIP Underwriting and Administrative Services

NLP provides second/third mortgage loans for properties that target very low-income residents and those with special housing needs including the elderly, disabled, single parent families and farm worker families. NLP works with local governments in the administration of State of Florida SHIP (State Housing Incentive Program) funds that are used for affordable housing. The administration services include loan origination, loan underwriting, and loan management including documentation, draw administration and payment processing. Other services include semi-annual property inspections and rental compliance monitoring.

Back to Top ⇑