The Revolving Loan Fund consists of 50% of actual carryover funds in excess of the adopted budget (up to $10 million) that are placed in the Affordable Housing Trust Fund annually. The general fund revenues, all repayments of general fund revenues, and all interest paid on loans made from the Revolving Loan Fund will be deposited into a separate interest-bearing account. These funds are to be used for making eligible loans to developers and for the administration of the Revolving Loan Fund.
Short Term Loans will be made available to developers for the construction, rehabilitation, or acquisition of land or housing for sale or rental to home buyers or renters whose household annual income does not exceed 140% of the ARI.
Loans will be awarded based on underwriting criteria, set forth in the Revolving Loan Fund guidelines to be created by the board of trustees over the 2017 summer and approved by the Board of County Commissioners. Preference will be given to developments located in Commission Districts with the highest need, as determined by the Board of County Commissioners. There is no competitive process required to receive funds.
The fund will be administered by an outside administrator selected through a competitive Request for Proposals (RFP) process. It is anticipated the RFP will be published in Fall 2017. The Board of Trustees of the Affordable Housing Trust will serve as the selection committee to review the RFPs and will make a recommendation to the Board of County Commissioners for the selection of an outside administrator.
The final award of all loans from the Revolving Loan Fund must be approved by the chosen administrator and shall not require approval of the Board of County Commissioners.