The MaineHousing Contract Administration Loan Program ensures the preservation of affordability by permitting eligible owners of Section 8 properties with a project-based Housing Assistance Payments (HAP) contract funded by the U.S. Department of Housing and Urban Development (HUD) and administered by MaineHousing to borrow funds for a number of purposes.
Eligible properties are those projects in the MaineHousing Contract Administration portfolio that have no current MaineHousing financing. Eligible uses of loan proceeds include funds for repayment of existing debt, capital improvements, rehabilitation work, energy efficiency upgrades, creation of new units, ownership transfers, and equity takeout.
In order to be eligible for a Contract Administration loan under the program, a borrower must have an existing Section 8 HAP Contract administered by MaineHousing in good standing and not currently have MaineHousing financing on the property.
Borrowers must be able to obtain an approved Previous Participation Certification (HUD Form 2530) from HUD. MaineHousing in its sole discretion may direct applicants to other financing programs, as it deems appropriate. MaineHousing will make the final determination regarding whether or not each borrower is eligible for the program.
Applications for Contract Administration Loan Program loans will be reviewed on an on-going, walk-in basis.
Applications shall include the following:
- Cover letter requesting the loan.
- Borrowing resolution from the ownership entity, if applicable.
- Proposed use of loan proceeds including a Sources and Uses schedule of loan proceeds.
- Scope of work, if any, with related budget.
- Current vacancy rates.
- Current operating expense data.
- 5 - 15 year cash-flow projection depending on loan term requested.
- Rent structure and post-rehab operating budget, if any.
- Project audited financial statements for the past three (3) fiscal years.
- Proposed sources of funds, i.e., MaineHousing loan, use of project operating or reserve funds via drawdown or loan, owner contribution, grants, or any combination thereof.
Please contact your Asset Manager for more information.