What We Need in Applications for Predevelopment Grants and Loans
Requirements include a request letter and brief information about the organization.
Request Letter
Your request letter should be a single page that includes a statement requesting a specific dollar amount for predevelopment funding and a brief description of the project. The description should highlight the goal of the project, number of units and/or square footage, type of project (e.g., rental, homeownership, commercial, mixed use), location, and status of site control.
Formally, the letter is the only thing LISC needs to act on a request. In the course of underwriting an action, however, LISC staff will also need the following project and organizational information, (which may be submitted along with the request letter in any form, including copies from other applications).
Project information
- » Project description (number of units, commercial/community square footage—retail, office, or community space—new construction or rehab, percent affordable, project goal, target population or need addressed)
- » Current project budget estimate
- » Project sources and uses statement: proposed financing for whole project acquisition, construction, permanent, including status of projected funding sources (indicate whether funds have been committed or date applied for funding)
- » Predevelopment sources and uses statement
- » 10-year operating cash flow
- » Property management plan (if owning the property)
- » Supportive services provider and services, if appropriate
- » Development team to extent known architect, general contractor, attorney, consultant, property manager, etc. (including a 2-3 sentence statement on their experience with similar types of projects and qualifications)
- » Estimate of project timeline (including anticipated permanent financing closing, construction start)
- » Description of development site: Location; immediate surroundings (residential, commercial, industrial; specific institutions, etc.); site control status—if you do not have site control, anticipated time frame for purchase agreement or acquisition
- » Status of environmental testing
- » Target market for housing and/or commercial; marketing plan or brief description of anticipated outreach and marketing
- » Statement of organizational mission
- » Copy of IRS 501(c)3 letter (if not already on file with LISC)
- » Description of organization's development history (including specific projects)
- » Information on board of directors (number of members; community representation and fields or expertise represented)
- » Name of executive director and key development staff (organizational tenure, experience)
- » 3 years audited financial statements
For more details, please contact a LISC program officer at 651-649-1109.
