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CEDAC provides two key ingredients to help its non-profit partners develop and preserve affordable housing: professional expertise, and seed funding to cover a project's predevelopment costs.

Predevelopment Seed Funding

CEDAC manages over $45 million in revolving loan funds, which it lends to non-profit developers to help move their projects from concept to reality--from blueprints to buildings, plans to programs. Over its twenty-six years of operation, CEDAC has lent non-profit developers over $205 million in high risk, unsecured loans, with a loss rate of under 1%. CEDAC has helped non-profit developers preserve and produce over 38,000
housing units in the Commonwealth.

In its role as a "development lender," CEDAC starts the process on each project by lending funds to cover a developer's start-up expenses of gaining site control, analyzing a project's feasibility, and performing initial architectural and engineering studies. If a project proves feasible, CEDAC increases its loan amount to help developers prepare the financing and subsidy applications, and secure the regulatory approvals, that will make the project a reality.

Once preliminary financing commitments are secured, CEDAC will lend additional funds to cover the costs of advanced design work, appraisals, environmental testing, and project management expenses. CEDAC also offers an Acquisition Loan Program, which makes loans to developers to buy sites if they must purchase them before all the project's financing can be secured.

Expert Technical Assistance

CEDAC staff work with both new non-profit developers, as well as those with significant development experience, to offer a guiding hand through the development process. With their collective experience in non-profit real estate development, CEDAC staff can offer borrowers the knowledge necessary to find their way through the complicated maze of assembling financing and bringing affordable housing projects to fruition. CEDAC staff can help assess the feasibility of a project, develop strategies about alternative development programs for a site, and advise on applicable state and federal programs.

Affordable Housing and Supported Housing

CEDAC serves as the Department of Housing and Community Development's (DHCD) underwriting agent for three loan programs which provide deferred-payment, subordinated permanent mortgage financing to help meet the costs of producing affordable housing. The loans are for amounts up to $500,000, depending on project size, are non-interest bearing, and are structured with 30-40 year terms. As underwriter, CEDAC recommends that DHCD make loans to community-based projects through:

  • The Housing Innovations Fund (HIF), which supports limited equity cooperatives, single-room occupancy housing, housing for special needs populations, and other innovative projects.
  • The Facilities Consolidation Fund (FCF), which finances community residences for clients of the Department of Mental Health and the Department of Developmental Disabilities, and permanent housing for the mentally ill.
  • Community Based Housing (CBH) provides funding for the development of integrated housing for people with disabilities, including elders with priority for individuals who are in institutions or nursing facilities or at risk of institutionalization.

The HIF, FCF and CBH programs have helped finance the construction and renovation of more than 16,000 units of family rental, special needs and supported housing.

Webinar: Innovative Approaches to Supportive Housing Development in Massachusetts

On October 30, 2014, CEDAC hosted a webinar for the National Housing Conference and Center for Housing Policy. Download slide deck here.

CEDAC, 18 Tremont Street Suite 1020, Boston, MA 02108 tel. 617-727-5944 fax 617-727-5990 email cedac@cedac.org