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Wake County Affordable Housing Preservation Fund


Financing for preserving Affordable Multifamily Rental Housing in Wake County, North Carolina

In response to the rapidly rising cost of rental housing in the region, Wake County, the City of Raleigh, Truist, Wells-Fargo, First Horizon and Self-Help Ventures Fund have come together preserve affordable housing across Wake County.

The Wake County Affordable Housing Preservation Fund (WAHPF), administered by Self-Help Ventures Fund, is a $61.6 million loan fund designed to keep nearly 3,200 units in Wake County affordable over the next 15 years. 

WAHPF loans provide financing for nonprofit and for-profit developers to to acquire, refinance, rehabilitate and preserve existing affordable multifamily rental housing in Wake County.

Eligible Projects

  • Existing affordable housing, whether Legally Binding  Affordability Restricted Housing (LBAR) or Naturally Occurring Affordable Housing (NOAH).
  • Must be located either in an incorporated municipality within Wake County or in unincorporated Wake County.
  • Preference for projects located in areas of Economic Opportunity in Wake County.

Eligible Borrowers

  • Nonprofit developers
  • For-profit developers who are certified Minority/Women-Owned Business Enterprises (MWBE)
  • For-profit, non-MWBE developers
  • Borrowers must have recent, relevant affordable housing development experience

Benefits of the Wake County Affordable Housing Preservation Fund

  • Offers advantageous bridge or mezzanine financing.
  • Enables developers to save money that can be used to preserve affordability in housing projects.
  • Loans can be used to acquire, rehabilitate, refinance or maintain affordable housing units.
  • Access to in-house legal and real estate development expertise.
  • No prepayment penalty.
  • Low (1%) origination fee.

Two WAHPF Products Available: The Bridge Builder and the Place Saver

Bridge Builder

Product Details

  • Bridge Loan
  • Offers time and flexibility to developers as they seek longer-term financing
  • Term: 5 years
  • Amount: $250,000 to $7 million
  • Project cost financed:
    • For nonprofit or for-profit certified MWBE developers: 100% acquisition + 10% repair.
    • For non MWBE, for-profit developers: 90%.
  • Max combined LTV:
    • For nonprofit or for-profit certified MWBE developers: 110%
    • For non MWBE, for-profit developers: 90%
  • 4.85% fixed rate if recourse, 6.25% if non-recourse loan
  • Self-Help will consider combining this loan with other Self-Help products if a larger loan amount is needed.

Covenants:

  • All developers: Business plan must state plan for long-term affordability.
  • Nonprofit developers: Business plan to preserve affordable housing with acceptance of deed restrictions for long term affordability upon bridge loan refinance
  • For-profit developers: 10-year deed restrictions preserving affordability at bridge loan closing.

Contact:

JJ Froehlich
john.froehlich@self-help.org
(919) 794-6792

Place Saver

Product Details

  • Subordinate (mezzanine) financing
    • Can be used to replace a portion of developer equity in a project, to help attract senior debt.
  • Supports acquisition or refinancing of existing affordable housing
  • Intended to maintain long-term affordability of housing
  • Term: 15 years
  • Amount: $250,000 to $10 million
  • Project cost financed:
    • For nonprofit or for-profit certified MWBE developers: 25%
    • For non MWBE, for-profit developers: 20%
  • Max combined LTV:
    • For nonprofit or for-profit certified MWBE developers: 95%
    • For non MWBE, for-profit developers: 90%
  • 3.59% fixed rate if recourse, 5.09% if non-recourse loan
  • Self-Help will offer this subordinate loan product along with its first-lien loan products providing developers with a one-stop shop for financing.

Covenants:

  • 20-year deed restriction

Contact:

JJ Froehlich
john.froehlich@self-help.org
(919) 794-6792

Partners

Creating more affordable housing in our communities requires creative collaboration among many organizations. WAHPF is a great example of what we can do when we work together.

WAHPF is a result of collaboration among the City of Raleigh; Wake County; Self-Help, who is the administrator of the fund; and our bank partners Truist, First Horizon and Wells Fargo.

Wake County logo

City of Raleigh logo

Truist logo

Wells Fargo logo

First Horizon logo