Detroit LISC Lending Brochure - Local Initiatives Support Corporation

Application Process and Contact Information
To apply for financing, or for more information about LISC’s products and how they can
help a particular project, contact the Detroit
LISC Lending Department:
Victor Abla
Loan Portfolio Director
(313) 596-8222 x 17
[email protected]
Detroit Local Initiatives Support Corporation (LISC) is a
local organization within the national LISC network.
National LISC, founded in 1980, is the largest
community development support organization in the
nation, partnering with more than 2,400 community
development corporations in more than 300 rural and
urban communities nationwide.
Detroit LISC is a comprehensive housing and economic
development program that rebuilds communities
through local developers. Detroit LISC has invested
more than $150 million and leveraged an additional
$1 billion in Detroit neighborhoods since 1990.
Detroit Local Initiatives Support
Corporation
660 Woodward Avenue, Suite 1600
Detroit, MI 48226
Phone: (313) 596-8222
Fax (313) 596-837
detroit-lisc.org
facebook.com/Detroit.LISC
twitter.com/LISC_Detroit
Permanent Financing
Recoverable Grants
Recoverable grants are essentially 0% interest loans
used to cover specific predevelopment costs associated
with a real estate development project. Recoverable
grants provide the high-risk capital to move a project
that has already demonstrated initial feasibility to the
point of securing financing commitments and the start
of construction. Typical amounts of recoverable grant
financing range from $25,000 to $75,000 over a one to
two year term. Repayment most often occurs at the
point of closing on construction financing and can be
done on an unsecured basis.
is committed to providing creative and flexible financial products that meet a variety of real estate development needs. Detroit LISC staff in lending and development work with groups to consult, problem solve,
and assist with all types of financing opportunities.
The following loan products, along with technical
assistance and equity products, are available for a
wide variety of project types, including:
• Affordable housing
• Mixed use and commercial
• Charter schools
• Health centers
• Small businesses
• Early childhood facilities
• Housing preservation projects
• Homeless and/or Veteran housing
• Public housing
• Healthy food projects
Predevelopment and Acquisition Loans
Predevelopment and acquisition loans are available for
projects that are highly likely to proceed to construction.
The amounts available for these types of loans can be
greater than the resources of a recoverable grant.
Financing can be provided for a term of one to two years
and repayment is usually set to occur at the time of close
on construction financing. Collateral is typically required.
Construction Financing
Construction Loans
LISC is able to provide construction loans up to
$3 million for projects in conjunction with other lenders.
Construction loans are repaid at the time of sale or
closing on the permanent loan. Collateral is required.
Working Capital, Bridge Loans and Lines of Credit
LISC can provide short-term loans to bridge other
sources of financing (which are generally committed)
that the borrower will receive over time to support its
real estate development activity and/or operational cash
flow.
Mini Permanent Loans
LISC can make loans up to $3 million with a term
between three and seven years and an amortization
period of up to 15 years. A LISC mini-perm often
begins as a construction loan that converts to a miniperm loan when certain conditions are met after
construction is completed. Collateral is required.
Equity and Intermediary Capital
Low Income Housing Tax Credits
LISC can help a project acquire the equity it needs for
residential and mixed-use projects through the syndication of Low Income Housing Tax Credits by our affiliate, the National Equity Fund (NEF).
New Markets Tax Credits
LISC can place equity or long-term financing into commercial and mixed-use projects through an investment of New Markets Tax Credits by our affiliate, the
New Markets Support Corporation (NMSC).