Pre-Development Loan Fund
Established in 1998, the Pre-Development Loan Fund provides a source of working capital to developers of affordable housing and historic rehabilitation projects in the earliest stages of development. The program enables the St. Louis Equity Fund to step beyond its traditional role by extending financial support to assist developers in bringing quality projects to our Investment Committee. This early and close involvement ensures that our underwriting criteria are already incorporated at each step of the process.
The fund was originally established in 1998, with a $300,000 loan pool. No defaults have occurred since its inception. Currently, this fund provides $1 million through its revolving loan fund. By providing small developers and non-profit organizations with loans up to $200,000, 25 housing developments have benefited from the fund. The loan is designed to cover expenses such as architect fees, engineer fees, survey and appraisal cost, title insurance and pre-demolition to ascertain more exact construction costs.