 | Program Summary |
The Pre-Development Loan (PDL) Program provides interest-free funds of up to $60,000 for 24 months to help nonprofit developers of affordable housing start their projects. There is no payment until the end of the loan term or until the project’s construction financing is secured.
Eligible projects include multifamily rental projects, emergency shelters, single-family subdivisions, supportive apartments, transitional housing, therapeutic group homes, mobile home parks, and single room occupancy housing.
Pre-development loans may fund:
- Option or earnest money payments on a purchase and sale contract (up to $5,000)
- Environmental testing
- Legal services
- Architectural services
- Engineering assessment
- Appraisal services
- Consulting fees (up to $5,000)
- Organizational and staff time devoted to project management (up to $7,500)
Projects development with help from the Predevelopment Loan Program must meet the affordability standards of the MaineHousing program they are applying to. If an applicant is not seeking permanent financing for a MaineHousing program, then the following affordability standards apply:
- Homeownership – At least 50% of the homes must be affordable to households with an income at or below 115% of the Area Median Income (AMI).
- Rental – at least 40% of the housing units developed must be affordable to households with incomes at or below 60% Area Median Income.
MaineHousing provides an average of 10 pre-development loans annually.
| Am I Eligible? |
Any nonprofit agency that has filed for or received 501(c)(3) tax-exempt status from the U.S. Internal Revenue Service, and who is registered to do business in Maine, may apply for a pre-development loan. An applicant is limited to a maximum of three pre-development loans at any one time.
| How Do I Apply? |
All applicants to the program must submit a completed Pre-Development Loan Application. MaineHousing reviews applications in the order they are received.
Please note that a PDL commitment for a project is not a guarantee that a developer will receive construction or permanent financing for the project from other MaineHousing programs.
For more information see the related documents and related links at the top of the page, see the Pre-Development Loan Program Guide and Application, or contact:
| Manager of Lending |
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Email Me |
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(207) 626-4634 |
| | Program Resources
Additional Resources |