COMMUNITY LENDERS Community Development Corporation

Application

LOAN PROGRAMS Community Investment Mixed Use Development Residential Housing

0fdf9fb3addc1fd899ae447cef6af951.docx - 1 - Revised 04/09/18 COMMUNITY LENDERS Community Development Corporation Introduction

History  To work with the public and private CLCDC was formed in 1999 as a non- sectors in the financing of housing profit 501(c)(3) multi-bank and commercial development, which community development will benefit low and moderate corporation. income persons and areas;  On an ongoing basis, to develop new Vision programs, which will respond to identified credit needs of the To help build communities. communities;  To develop and implement Mission procedures and systems that will The mission of CLCDC is to promote enable CLCDC to meet its objectives and facilitate community revitalization in an efficient manner thereby through the financing of, and investment attracting private capital on a in, housing and community development continuing basis. activities, which address the needs of low and moderate income persons and Strategy areas throughout Berks, Bucks, Chester, CLCDC has implemented programs and Delaware, Montgomery and Philadelphia procedures, which promote the Counties, with specific emphasis on successful ability to attract and retain those communities where member banks financial resources and to put these are located. resources to effective use.

Goals CLCDC members invest in a pool of In undertaking this mission, CLCDC funds, which provide financing for funds will be guided by the following residential projects, mixed use goals and objectives when reviewing development projects and community loan applicants: redevelopment and revitalization  To originate and service loans, which projects. will provide housing for low and moderate income persons;  To provide financing for facilities, which offer clear public benefits that will primarily accrue to the residents of the area, and which contribute to the redevelopment and economic well-being of that area;

2 Questions If you have any questions about this application, you may contact Audrey McMichael, Executive Director of CLCDC by telephone at (215) 799-1340, by email at AMcMichael@Community LendersPA.org

0fdf9fb3addc1fd899ae447cef6af951.docx Revised 4/9/2018 - 3 - COMMUNITY LENDERS Community Development Corporation Introduction Continued Application Process Focus Organizations may apply for CLCDC funds In addition, projects must provide for at by submitting this application. CLCDC will least one of the listed activities: work with applicants regarding issues of 1. Affordable Housing (including eligibility and appropriateness of the multifamily rental housing) for low or application. moderate income individuals; 2. Community services targeted to low or Upon receipt of a completed application, moderate income individuals; with all the appropriate documentation, 3. Activities that revitalize or stabilize low CLCDC will conduct a review and analysis or moderate income geographies. and submit the package to the Loan Committee for consideration. Member Banks The Committee may approve or decline the Ambler Savings Bank application, make changes to the terms and American Bank conditions, or request further information. BB&T Any exception to loan policy must be clearly Bryn Mawr Trust justified. Loan Committee then makes their Covenant Bank recommendation to the Board of Directors. Customers Bank Final approval will be in the form of a Embassy Bank Commitment Letter, which will be mailed to First National B & T Co. of Newtown the applicant. Acceptance of the loan is First Priority Bank indicated by returning the signed Fulton Bank commitment together with the payment of Harleysville Bank the commitment fee. KeyBank M & T Bank Malvern Federal Savings Bank Selection Criteria Meridian Bank The applicant must clearly define the project Penn Community Bank objectives and provide sufficient Phoenixville Federal Bank & Trust documentation to demonstrate: Prudential Savings Bank QNB Bank  Market feasibility; Republic Bank  Financial feasibility; Royal Bank America  Participation of other investors and The Bancorp Bank financing resources, if applicable; The Provident Bank  Track record and capacity of Tompkins VIST Bank development and management Univest Bank and Trust Co. teams; William Penn Bank  Conformance to all applicable WSFS Bank environmental, zoning and building regulations.

4 COMMUNITY LENDERS Community Development Corporation Loan Programs

Forward Commitments: The rate is fixed at the Community Investment prevailing rate on the date the loan is approved by the Board. Should the loan not be closed on Eligible Borrowers: Non-profit organizations, or before the commitment expiration date, the for-profit housing developers, partnerships, local application must be updated and may be subject government agencies and individuals. to an interest rate change to the rate in effect at the time of re-commitment. An extension fee Eligible Projects: Community redevelopment may be required. and revitalization projects, which offer a clear public benefit. Prepayment Penalty: None.

Eligible Transactions: Permanent loans for Application Fee: $500 non-refundable; due acquisition, preservation, post-construction, upon submission of application. and/or post-rehabilitation. Commitment Fee: 1% of loan amount due upon Security: First mortgage against land and acceptance of commitment. improvements. Assignment of leases, rents and other appropriate collateral required. Other Loan Fees: Non-profit – 1% of loan amount due recorded agreements or restrictions must be at closing. For-profit – 1.5% of loan amount due subordinated. at closing. (Partnerships with non-profits and for-profit developers are encouraged by offering Low-Income Affordability: N/A the lower fee to those forming such partnerships.) Low-Income Units: N/A Legal Fees: Legal fees to be paid by applicant. Loan Limits: No minimum or maximum loan amounts. Other Fees: Appraisal and all other out-of- pocket fees to be paid by applicant. LTV Ratio: Not to exceed 75% of the lower of the appraised value or cost of property; that Appraisal: An appraisal commissioned by the includes documented acquisition and CLCDC is a prerequisite for commitment. construction/rehabilitation costs. CLCDC pays the appraiser with funds advanced by the applicant. The appraiser must meet Debt Service Coverage: The minimum debt current appraisal guidelines as provided by Title service coverage ratio is: XI of FIRREA and the USPAP.

1.10:1 – LTV ratio of 60% or less Environmental: Loans up to $500,000 require a 1.15:1 – LTV ratio of 61% to 70% review of the real estate appraisal to look for 1.20:1 – LTV ratio of 71% to 75% items of special mention by the appraiser; the completion of an ASTM environmental site Loan Term: Loans will have a maximum term assessment questionnaire; and an environmental and amortization of up to 25 years. database search. Loans of $500,001 and over require a Phase I Environmental Audit Interest Rate: Fixed rate based on current performed by a CLCDC approved inspector at economic conditions as determined by the Board the expense of the applicant. Any adverse of Directors. The rate will be set at the regular conditions cited in the conclusion must be Board meeting. A margin may be added to resolved in a manner acceptable to CLCDC. individual loans based upon the structure and risk of the project, as determined by the Loan Guarantees: All loan advances will require Committee. CLCDC will retain 25 basis points guarantees and recourse as appropriate. for servicing the loan. 0fdf9fb3addc1fd899ae447cef6af951.docx Revised 4/9/2018 - 5 - COMMUNITY LENDERS Community Development Corporation Loan Programs, continued

Mixed Use Committee. CLCDC will retain 25 basis points for servicing the loan. Eligible Borrowers: Non-profit organizations, for-profit housing developers, partnerships, local Forward Commitments: The rate is fixed at the government agencies and individuals. prevailing rate on the date the loan is approved by the Board. Should the loan not be closed on Eligible Projects: Community redevelopment or before the commitment expiration date, the and revitalization projects, which offer a clear application must be updated and may be subject public benefit containing both housing and to an interest rate change to the rate in effect at commercial space. the time of re-commitment. An extension fee may be required. Eligible Transactions: Permanent loans for acquisition, preservation, post-construction, Prepayment Penalty: None. and/or post-rehabilitation. Application Fee: $500 non-refundable; due Security: First mortgage against land and upon submission of application. improvements. Assignment of leases, rents and other appropriate collateral required. Other Commitment Fee: 1% of loan amount due upon recorded agreements or restrictions must be acceptance of commitment. subordinated. Loan Fees: Non-profit – 1% of loan amount due Low-Income Affordability: See terms for at closing. For-profit – 1.5% of loan amount due Residential Housing Program. at closing.

Low-Income Units: See terms for Residential Legal Fees: Legal fees to be paid by applicant. Housing Program. Other Fees: Appraisal and all other out-of- Loan Limits: No minimum or maximum loan pocket fees to be paid by applicant. amounts. Appraisal: An appraisal commissioned by the LTV Ratio: Not to exceed 75% of the lower of CLCDC is a prerequisite for commitment. the appraised value or cost of property; that CLCDC pays the appraiser with funds advanced includes documented acquisition and by the applicant. The appraiser must meet construction/ rehabilitation costs. current appraisal guidelines as provided by Title XI of FIRREA and the USPAP. Debt Service Coverage: The minimum debt service coverage ratio is: Environmental: Loans up to $500,000 require a review of the real estate appraisal to look for 1.10:1 – LTV ratio of 60% or less items of special mention by the appraiser; the 1.15:1 – LTV ratio of 61% to 70% completion of an ASTM environmental site 1.20:1 – LTV ratio of 71% to 75% assessment questionnaire; and an environmental database search. Loans of $500,001 and over Loan Term: See terms for Residential Housing require a Phase I Environmental Audit Program or Community Investment Program. performed by a CLCDC approved inspector at the expense of the applicant. Any adverse Interest Rate: Fixed rate based on current conditions cited in the conclusion must be economic conditions as determined by the Board resolved in a manner acceptable to CLCDC. of Directors. The rate will be set at the regular Board meeting. A margin may be added to Guarantees: All loan advances will require individual loans based upon the structure and guarantees and recourse as appropriate. risk of the project, as determined by the Loan

6 COMMUNITY LENDERS Community Development Corporation Loan Programs, continued

the Loan Committee. CLCDC will retain 25 basis Residential Housing points for servicing the loan.

Eligible Borrowers: Non-profit organizations, for- Forward Commitments: The rate is fixed at the profit housing developers, partnerships, local prevailing rate on the date the loan is approved by the government agencies and individuals. Board. Should the loan not be closed on or before the commitment expiration date, the application must be Eligible Projects: Community redevelopment and updated and may be subject to an interest rate change revitalization projects for affordable housing of one or to the rate in effect at the time of re-commitment. An more units. extension fee may be required.

Eligible Transactions: Permanent loans for Prepayment Penalty: None. acquisition, preservation, post-construction, and/or Application Fee: $500 non-refundable; due upon post-rehabilitation. submission of application.

Security: First mortgage against land and Commitment Fee: 1% of loan amount due upon improvements. Assignment of leases, rents and other acceptance of commitment. appropriate collateral required. Other recorded agreements or restrictions must be subordinated. Loan Fees: Non-profit – 1% of loan amount due at closing. For-profit – 1.5% of loan amount due at Low-Income Affordability: Projects must be closing. affordable for life of the loan. Legal Fees: Legal fees to be paid by applicant. Low-Income Units: Project rent structure must include sufficient low-income units to minimally Other Fees: Appraisal and all other out-of-pocket fees satisfy one of three requirements: to be paid by applicant.

% Affordable % of AMI Appraisal: An appraisal commissioned by the 51% or more 80% or less CLCDC is a prerequisite for commitment. CLCDC 40% or more 60% or less pays the appraiser with funds advanced by the 20% or more 50% or less applicant. The appraiser must meet current appraisal guidelines as provided by Title XI of FIRREA and the Loan Limits: No minimum or maximum loan USPAP. amounts. Environmental: Most 1-4 residential properties will LTV Ratio: Not to exceed 75% of the lower of the not need an environmental assessment unless a higher appraised value or cost of property; that includes than normal environmental risk is suspected through documented acquisition and construction/ review of the appraisal report, property reports, or rehabilitation costs. other information known about the property. Loans up to $500,000 require a review of the real estate Debt Service Coverage: The minimum debt service appraisal to look for items of special mention by the coverage ratio is: appraiser; the completion of an ASTM environmental site assessment questionnaire; and an environmental 1.10:1 – LTV ratio of 50% or less database search. Loans of $500,001 and over require a 1.15:1 – LTV ratio of 51% to 60% Phase I Environmental Audit performed by a CLCDC 1.20:1 – LTV ratio of 61% to 70% approved inspector at the expense of the applicant. 1.25:1 – LTV ratio of 71% to 75% Any adverse conditions cited in the conclusion must be resolved in a manner acceptable to CLCDC. Loan Term: Loans will have a maximum term and amortization of up to 30 years. Guarantees: According to IRS regulations, loan made to Limited Partnerships under the FLIHTC Interest Rate: Fixed rate based on current economic program must be non-recourse to the partnership. All conditions as determined by the Board of Directors. other loans will require guarantees and recourse as The rate will be set at the regular Board meeting. A appropriate. margin may be added to individual loans based upon the structure and risk of the project, as determined by

0fdf9fb3addc1fd899ae447cef6af951.docx Revised 4/9/2018 - 7 - COMMUNITY LENDERS Community Development Corporation Application Checklist

PLEASE ATTACH THE FOLLOWING APPLICABLE DOCUMENTS TO THIS APPLICATION:

Applicant Information:

 Certification on Non-Profit  Articles of Incorporation (or similar organizing documents) and current Bylaws  Official document(s) referencing mission statement OR specified narrative information  Year-end financial statement(s) – most recent three (3) years (Non-Profits and For-Profits)  Net Worth Statement and Employer Information (Individuals)  Organization’s marketing materials  Management (Experience and History)  Partnership Agreement

Property Information:

 Deed if Refinance  Agreement of Sale if Purchase  Current Lease(s)  Inspection(s)  Property Description  Environmental Information

Project Information:

 Development Costs  Marketing Plan  Operating Budget  Rental Income Projections  Zoning Documents  Site Plan; Floor Plan, etc.  Structure of Ownership of Property  Management Agent

8 COMMUNITY LENDERS Community Development Corporation Applicant Information

Applicant Contact Information Applicant Organization Name:

Mailing Address:

Authorized Representative Name and Title: Telephone number:

Email address:

Contact Person Name and Title, and address Telephone number: if different from applicant:

Email address:

Tax Identification Number: Website address (if applicable):

To the best of my knowledge and belief, all information in this application is true and correct. The application has been duly authorized by the governing body of the applicant. Furthermore, if this application is approved and loan funded, applicant agrees to permit CLCDC to publicize the loan and subsequent project and credit its involvement therewith; and to include reasonable reference to CLCDC and its role in funding the loan and/or subsequent project in any press releases, publications, newsletters or other materials regarding describing the loan and/or subsequent project. Authorized Representative Signature: Date:

Applicant Organizational Characteristics Type of Entity (check one): Non Profit Tax Exempt Status (if  For-profit applicable):  Non-profit  501 (c )(3)  Joint Venture  Other (specify):  Partnership  Individual

0fdf9fb3addc1fd899ae447cef6af951.docx Revised 4/9/2018 - 9 - COMMUNITY LENDERS Community Development Corporation Loan Information

Application Type (check one) Community Investment Mixed Use Residential Housing Single Family

Requested Terms Loan Amount: $ Term: Yrs. Rate: % Loan to Value % Ratio: Project Debt Service Global Debt Service Coverage Ratio: X Coverage Ratio: X

Check All That Apply Acquisition Low/Mod General New Construction Elderly Rehabilitation Physically Disabled Office Space Mentally Disabled Single Family Attached Homeless Single Family Detached Domestic Violence Multi-Unit Counseling Rental Thrift Store Single Room Occupancy Food Pantry Group Home Teaching Other: Other:

Project Site Location Site Address: City: County: Zip: Census Tract #: Site Address: City: County: Zip: Census Tract #: Site Address: City: County: Zip: Census Tract#: Site Address: City: County: Zip: Census Tract#:

10 COMMUNITY LENDERS Community Development Corporation Loan Information, Continued

Funding Sources First Mortgage (CLCDC): $ Second Mortgage: $ Third Mortgage: $ Other: $ $ $ $ $ Equity: $ $ TOTAL $

New Construction Construction Loan Commitment: Yes/No Construction Lender:

Contact Name: Phone Number:

Briefly describe in narrative form the purpose and use of loan funds.

0fdf9fb3addc1fd899ae447cef6af951.docx Revised 4/9/2018 - 11 - Community Lenders CDC 120 East Broad Street, Suite 2 Souderton, PA 18964 Phone: 215-799-1340 Email: [email protected] Web: www.CommunityLendersPA.org

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