Pre-Development Small & Large Loan Term Sheet

Purpose: To fund pre-development loans to Not-For-Profit organizations in New England (States of Connecticut, Rhode Island, Massachusetts, New Hampshire, Maine and Vermont) to enable them to advance affordable and supportive housing projects with the use of loan funds.

Maximum Small Loan Size:  $50,000 per loan (maximum of one loan per not-for-profit organization).  Loans must be for a specific project and loan proceeds to be advanced as expenses are incurred.

Maximum Large Loan Size: This is variable based upon the project, anticipated term of the loan and current availability of funds available for lending- but generally not  to exceed $1.5 MM.

Term:  Small predevelopment loans would be made for a minimum term of six to twelve months renewable at the discretion of HMNE. Larger loans have a term not to exceed 30 months.

Interest Rate: An interest rate, to be determined at the time of application, will be charged by HMNE on all loans.  Interest will accrue during the life of the loan and will be paid back at the time that repayment of the principal is made or as stated in the loan agreement documents.

Potential Uses of Loan Funds:  All applicable development costs including site control costs, legal fees, design fees, zoning approval process expenses, appraisal/market study fees, environmental report fees, funding application fees and other affordable/supportive housing development related fees deemed appropriate by HMNE.  All expenses must be documented by the borrower and requisitioned to HMNE.  

Eligible Borrowers: Not-for-profits with a proven track record in the development of affordable and/or supportive housing.  Organizations must have a strong balance sheet, experienced staff and a Board that is active in the field of affordable housing.  The organization should also have a successful track record in the successful receipt and use of public funds, three years of strong audited financial statements, must have bank references and all current projects owned and operated by the entity must be in compliance with all applicable government codes and regulations. 

Due Diligence:  HMNE would perform due diligence on both the not-for-profit entity and the proposed project and approval of a loan will be in HMNE’s sole discretion.  Proposed projects must be deemed feasible by HMNE in order to be approved.  Feasibility will be determined based on the type of project, status of site control, support from the community and local government, adequacy of market for proposed housing, design, zoning, availability of funding and other applicable considerations.

Fees:  Borrower would be responsible for any direct costs that HMNE incurs to review the funding application and any required due diligence and servicing of the loan is the responsibility of the borrower if the loan is funded.  Any costs incurred by HMNE may be incorporated into the principal amount of the loan.

Loan Collateral:  To be determined on a project-by-project basis.  For instance, if funds are used to acquire real property, the collateral will be the real property.

Application Process: The same application is used for both small and large loans and can be completed and downloaded on the HMNE website (  Applications that are received by the HMNE will first be reviewed for completeness of the information requested.  The Loan Committee of HMNE Directors will complete the review of the application and upon loan approval issue funds. In some instances the borrower may be requested to requisition funds based upon scheduled project expenses.


Contact Information:

General Information on HMNE Programs: Brenda Clement;
Predevelopment/Acquisition Loans: Leonard Gruenfeld;  (914)-420-0900
Grants: John Daly (603)745-2329.
Board Chairman: Thomas Callaghan, Jr. (781) 322-9090





Acquisition Loan Term Sheet

Grant Application & Guidelines



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