Catalytic Urban Predevelopment Fund
LISC Greater Kansas City, one of the nation’s largest Community Development Financial Institutions (CDFI), in partnership with the Ewing Marion Kauffman Foundation, the Hall Family Foundation, and the City of Kansas City, Missouri, has established a $4 million Catalytic Urban Predevelopment Fund to provide low-interest, flexible predevelopment loans for projects in the urban core of Kansas City, Missouri (KCMO) and Kansas City, Kansas (KCK). The fund will act as a catalyst to spur development in low to moderate income neighborhoods by providing the critical capital necessary in the early phases of real estate development projects.
Overview
The Catalytic Urban Predevelopment Fund provides low-interest, flexible predevelopment loans for projects in the urban core of Kansas City, Missouri (KCMO) and Kansas City, Kansas (KCK). The fund acts as a catalyst to spur development in low to moderate income neighborhoods by providing the critical capital necessary in the early phases of real estate development projects.
Loan Terms
Eligible borrowers will include both non-profit and for-profit developers planning a variety of projects including affordable and mixed-income housing, commercial development, community facilities, and mixed-use projects. Special project investments at 0% interest may be available for technical assistance and early-stage activities for eligible applicants.
- Annual interest rate: 4%
- Interest monthly, principal due at maturity
- Loan term: Up to 3 years
- Security: Variable
- Average loan size: $250,000
- Loan to value: Variable
Eligible Activities
Predevelopment loans are for project planning, design, acquisition, and environmental assessments that normally precede construction. Predevelopment activities include but are not limited to:
- Project conception
- Environmental consultants
- Site selection
- Finance consultants & fees
- Market research
- Development consultants
- Pro forma development
- Market studies
- Legal services
- Community engagement
- Appraisals
- Architect/Engineer services
Preference is given to projects within one mile of a school and in LISC’s three focus areas of the Historic Northeast and Troost/Prospect Corridors of KCMO; and downtown KCK.
