Loan Application Requirements

Step 1: Preliminary Loan Application

The following information should be submitted to HECA for the purpose of evaluating the feasibility of the proposed project, and submitting a package for approval for HECA’s Loan and Investment Committee.  Please forward applicable documents to HECA’s Underwriter for review.  Contact information is included at the end of the document.

 

Project Overview (all proposals)
  • Description of proposed project:
  1. Narrative describing project, amenities, and how it addresses the current affordable housing market
  2. Address, map and photos of site
  3. Number of units proposed
  • Purchase contract or option stipulating acquisition cost and current ownership
  • Loan amount requested

 

 Borrower / Developer Qualifications (all proposals)

  • Experience:
  1. List and description of previous projects / biographical information regarding company officers
  2. References
  3. Role in proposed project

  • Financial Position of the Company:
  1. Audited financial statements or federal tax returns (previous 2 years)
  2. Historical operating statements (previous 2 years)
  • Financial Position of Company Officers:
  1. Personal financial statements (current)
  2. Federal tax returns (previous 2 years)
  3. Schedule of contingent liabilities (current)

 

 New Construction Proposals only

  • Site plan of proposed project
  • Project budget
  • Project proforma – 5-year cash flow
  • List of Other Development Team and Description of Previous Experience
  1. Architect
  2. Property manager
  3. Marketing / sales consultant
  • Schematic elevations and floor plans with accompanying square footages
  • Proposed general contractor
  1. Proof of licensure
  2. Description of previous experience
  3. References
  • Marketing plan by proposed Realtor (with support for rent determinations included)
  • Evidence of proper zoning
  1. Zoning letter from appropriate governmental entity
  2. Information regarding re-zoning , if required
  • Evidence of Site utilities
  • Other project financing (if applicable)
  • Site visit by HECA representatives


 Acquisition / Rehabilitation Proposals only

  • Unit mix
  • Project proforma and budget
  • Market comparables
  • Historical occupancy and turnover rate (previous 2 years)
  • Historical repairs & maintenance (previous 2 years)
  • Historical capital expenditures
  • Rehabilitation plan
  • Description of any existing or proposed operating subsidy

                                       

Additional Documents required during Closing Phase (after loan approval)

  • Appraisal* (ordered by HECA)
  • Phase I environmental report* (approved by HECA)
  • Credit / background check on borrower
  • General contractor’s builders risk Insurance and necessary licensure
  • Evidence of general liability Insurance
  • Evidence of proper zoning
  • Survey*
  • Final construction/rehabilitation budget
  • Loan documents – process conducted by HECA attorney
  • Third-party market report* – upon request
  • Property condition report* - upon request (existing structures) 

*Denotes third-party report

 

 Please forward information to:                        For additional information:

Elizabeth Barbaree-Tasker                                Michele Jenkins-Utomi
Underwriter for HECA                                        CEO
Censeo, Inc.                                                      Housing Enterprise of Central Alabama
2 North 20th Street, Suite 1030                        1731 1st Avenue North, Suite 120
Birmingham, AL 35203                                       Birmingham, AL 35203
205-326-6722 ext. 204                                     205-323-9888
elizabeth@censeo.com                                     mutomi@housingenterprise.com



See also: