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Documentation to Prove Community Development Loan

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Question: 
What documentation would you suggest to prove a community development loan with the purpose of revitalization/stabilization in a moderate- income area? We are financing the purchase and construction of a mixed use development with upper income housing, retail and commercial space. The housing units have been completed but our loan will finance the finish out of the retail/commercial space. Development has TIF credits that our borrower will receive.
Answer: 

The bank should document/prove all that you stated here.

>The census tract and surrounding tracts and tract income level.

>Details on the project and how it is improving the area, including information regarding what the tract was like before the project (photos are good if they are available).

>Information on the TIF credits, why they were awarded, etc. TIF credits are generally awarded when the project is in a redevelopment area. If this is a designated revitalization/redevelopment area, gather data on the location of that area (what tracts it encompasses, the types of projects sought, the time period it covers.)

You want to document as much information as possible telling the story that shows why this project should garner community development credit for the bank. Anticipate questions that an examiner will ask and have all of the answers ready.

First published on 05/25/2015

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