Invest in BNCLT’s Semi-Permanent Loan Pilot!

The Semi-Permanent Loan Pilot is up and running! This is a new model for impact investment that bridges short term financing at acquisition with longer term investment as a means to stabilize our properties over time. This new tool is especially needed for scattered site properties like ours that we have been able to preserve as a means to prevent displacementkeep people from having to leave their neighborhoods. Conventional financing is both harder to access for this type of housing portfolio, and can also be expensive and extractive. Our new model invites community focused investors to hold these loans so that BNCLT, representing an investment in the social return of stabilized neighborhoods and enduring social housing. In addition, these impact loans are at a much lower rate, allowing us to save $1 million over the next 10 years – this is money that can instead be used to keep our properties in excellent condition, and to help seed other acquisitions.  

We have already raised $1.5 million dollars from the Local Enterprise Assistance Fund (LEAF) and from the Hyams Foundation toward our $3 million goal. This is a 10 year note with a 30 year amortization schedule. This means we will be paying down on the principal, as well as paying modest interest, so that when we go to refinance in 10 years, the amount required will be significantly lower, and the impact investors will be able to either renew their loan for another term, or take it out at this point in time.

Please reach out if you have questions or interest in this new lending vehicle. We are actively looking for impact investors (individuals or institutions) who would like to play this incredibly valuable role in stabilizing these homes, as well as establishing a replicable model for our CLT peers. This Semi-Permanent Loan model will be integrated into the CLT Fund through the Greater Boston CLT Network.