NMTC QLICI Aquisition and Construction Loans
NYCNCC provides financing for real estate projects, in the form of real estate aquisition and construction loans. Projects must be impactful community development projects in qualified NMTC low income communities. General terms for the loans are as follows:
- Size: $8-$10 million per project (mirrors the amount of NMTC allocation provided to the project by NYCNCC)
- Term: 7 years
- Rate: Varies, typically 1-4%
- Ammortization: up to 40 years
- Security: flexible and/or subordinate interest in real estate
- Equity equivalent features: loans are split into two notes (A and B notes). A note is typically 70% of loan principal and must be repaid. B note is typically 30% of loan principal and is forgivable at end of loan term.