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#2037890 - 09/10/15 05:36 PM CDL Loan Eligibility
FancyMe Offline
Junior Member
Joined: Dec 2012
Posts: 45
Florida
We are looking to qualify a Community Development Loan (CDL) to a Haitain chuch located in a moderate income area. The proceeds of the loan is as follows: 44% to refinance existing debt, 36% to renovate the property and 20% to purchase additional land next door to expand the church and it's meeting areas. Althought there is not a full-time day school program for kids, the non-profit church offers many onsite programs and services to their parishoners for english and financial literacy and other social programs and services. How can we write this CDL to recieve maximize credit?

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CRA
#2037965 - 09/10/15 08:41 PM Re: CDL Loan Eligibility FancyMe
Len S Online
Diamond Poster
Joined: Oct 2004
Posts: 1,971
Connecticut
Sounds like you want to qualify under community services. You would need to establish what services the organization provides and that the beneficiaries are primarily LMI persons. If the tract is low or moderate income you might have a claim for revitalization/stabilization. Whatever you do, clarify what definition applies, what facts support the qualifications and compile as much documentation as possible to substantiate qualifications.
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#2037986 - 09/10/15 10:13 PM Re: CDL Loan Eligibility FancyMe
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,281
Remember that the borrower being a church or other not for profit in itself won't qualify for community development for CRA purposes. You must show that the individuals being helped are primarily low and/or moderate income or that the area is being revitalized as Len described.
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
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www.kaybeescomplianceinsights.com

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#2039956 - 09/22/15 06:50 PM CDL Eligible Loan - City's CRA Refund of Bonds FancyMe
FancyMe Offline
Junior Member
Joined: Dec 2012
Posts: 45
Florida
We are looking to participate in the origination of a loan with another local Bank where the loan proceeds will be used to refund a portion of its Series 2005-2006 Bonds issued to a city's Community Redevelopment Agency (CRA). Initially the City's CRA funds issued were to acquire and construct several community developments projects including parking garage, Human Development Resources Community Center, Veteran's Memorial Park, public road improvements in economically distressed areas. Could this be an eligible CDL loan?

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#2039967 - 09/22/15 07:20 PM Re: CDL Eligible Loan - City's CRA Refund of Bonds FancyMe
Pale Rider Offline
10K Club
Pale Rider
Joined: Aug 2002
Posts: 34,318
under the Lone Star
The operative word is "could". You will have to show a community development purpose that meets the regulatory definition of community development. Focus on that last bond purpose, the improvements in economically distressed areas.
_________________________
Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


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#2039991 - 09/22/15 08:07 PM Re: CDL Eligible Loan - City's CRA Refund of Bonds FancyMe
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,281
Agree with "could". Also, after the focus on the road improvements in economically distressed areas, see if any other other uses were perhaps revitalization of low/mod areas. Otherwise, you get into chasing your tail trying to figure out how to show that low/mod individuals use the services and benefited.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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