Community Loan Fund
Established in 1993, the Community Loan Fund is a pool of over $4 million in contributions and capital investments that provides low-interest financing to individuals and organizations who develop affordable housing. As a Community Development Finance Institution (CDFI), WCHR's Revolving Community Loan Fund is focused on three types of lending:
Funding Models
REACH Program
Funded through a $2 million award from Massachusetts Attorney General Andrea Campbell's Office, the REACH Fund provides loans to court-appointed receivers to fund court-ordered repairs to Massachusetts residential and some mixed-use properties in receivership. Loans can be up to $250,000 and are offered at a competitive interest rate. Questions about the loan can be directed to REACH@wchr.org; unfortunately, we cannot answer phone inquiries. Click here for REACH Loan term sheet. Applications will be accepted beginning February 18th. Please check back at that time for a link to the portal for submitting your application.
Acquisition, Construction, and Bridge Loans for Affordable Housing
WCHR makes loans to cover construction expenses on affordable housing projects being developed by both nonprofit and small business developers, with an emphasis on emerging developers operated by women and minority owners.
These loans can fund construction and other direct costs by bridging the time between when vendors need to be paid and governmental or permanent mortgage funds become available, which may be several months if government funding programs are used. Depending on the scope of the project, these loans will generally run from six to twelve months in term and are interest-only during that period.
Gap Loan Financing
When working with non-profit or for-profit organizations, WCHR may be able to fill the final gaps needed for a rental housing project by providing lower debt service through the use of an amortization period that is longer than the loan term. In other words, we may be able to make a loan with payments based on a term of 20 years, even though the full balance of the loan may be due in a shorter timeframe.
More than 30 investors contribute to the Community Loan Fund to help improve the safety, sustainability, and quality of life within our communities. In addition to government funding, investors include nonprofit organizations, social investments, foundations, educational institutions, community banks, credit unions, religious institutions, and individual investors. Investment amounts, loan terms, and interest rates are tailored to the individual or organizational investor within WCHR's investment guidelines.​​​
To discuss becoming an investor in WCHR’s Community Loan Fund, please click the button above and fill out the form, or contact Ben Coy at bcoy@wchr.org or N. Paul TonThat at nptonthat@wchr.org.
Community Loan Fund in Action
PETERSHAM ROAD, HARDWICK
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WCHR made an acquisition and rehab bridge loan to Father and Sons Properties, a small family-owned business, to purchase and rehabilitate this old farmhouse into three apartments. The building had been partially converted into a communal living situation for faculty at a local private school, but no permits had been obtained for the start of the construction work. The developer was able to buy the property at a good price because of its uninhabitable condition and quickly turned it around. It will be rented at affordable rents, one of the few such properties in this rural town.
ILLINOIS STREET, WORCESTER
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This four-family building was owned by an emerging developer who had applied to the City of Worcester’s Affordable Housing program to create units with long-term affordability, obtaining $150,000 in federal Community Development Block Grant funds for utility, exterior, and interior finish improvements. WCHR provided a bridge loan to cover the gap between work being done and the funds being received. Under the terms of the CDBG funding, the units will carry a long-term affordability restriction of fifteen years.
PLEASANT STREET, LEOMINSTER
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This property came under receivership after significant storm damage had made two of the four units uninhabitable. The owner did not have sufficient funds available for the necessary reinvestment. The receiver, a well-known local contractor, was able to obtain funding for both emergency repairs and longer term capital improvements that would prevent further flooding, The work was completed, the property sold at the receiver’s auction, and is now a stable example of “naturally occurring” affordable housing. WCHR’s loan commitment of $339,000 enabled the receiver to make complete structural repairs, major improvements to the plumbing and electrical system, and restore all units to habitability.