Rural Workforce Housing Construction Loan Fund
The Georgia Department of Community will provide up to $1 million in construction loan financing for 24 months at 0-3% interest to developers to address workforce housing needs by building for-sale housing with sale prices below $290,000.
Eligible Applicants
All experienced for-profit and non-profit developers and contractors are eligible to apply for the RWHI loan program. Private developers, including not-for-profits and community housing development organizations, are eligible to apply.
Ineligible Applicants
Because these funds are intended to develop workforce housing in rural areas, projects in Cobb, Clayton, Dekalb, Douglas, Fayette, Fulton, Gwinnett, and Rockdale counties are not eligible to apply. (* Projects in all other counties are eligible to apply)
Loan Amounts
Construction loans are limited to no more than $1,000,000 per application financing at 0-3% interest for 24 months. The Authority reserves the right to fund, in whole or in part, any, all, or none of the applications submitted in response to this NOFA. Applications for less than $250,000 will not be accepted; however, the Authority reserves the ability to waive minimum and maximum funding limits at its discretion.
Eligible Use
Workforce housing funds will be awarded on a competitive basis to projects that demonstrate an ability to address:
- Ongoing workforce housing needs, as identified by a recent housing study;
- Difficulty satisfying workforce needs in communities or regions with low unemployment; or
- A community or regional commitment to expand and improve existing housing stock.
Eligible Activities
Loan funds are available to develop for-sale housing with a sale price of no more than $290,000 and no less than $125,000. The intentional sale for any purpose other than owner-occupied housing or the sale of more than a single parcel to any one entity is not permitted. Developments must comply with state environmental and historic preservation requirements.
Matching Requirements
Applications are expected to leverage private debt and equity for at least 60% of the development costs.
Rural Workforce Housing funding may be layered in project financing and may include other sources of public funds. However, applications will be scored based on overall competitiveness, which consists of an appropriate mix of private and public financing. This program is not intended to provide gap financing for developments that are already substantially financed through other public funding programs.
