In 2023, the Oregon legislature allocated $20 million for a Community Development Financial Institution (CDFI) to create a Construction Loan Guarantee (CLG) fund and program. Once established, CLG will provide guarantees for construction loans for affordable housing projects for low-to-moderate-income households earning up to 120% area median income (AMI).
The CLG will aim to offer up-front financial security in market affected by macroeconomic forces such as changing interest rates, material costs, and supply chains issues.
The Request for Application (RFA) is currently open for CDFIs to apply for this award. Please apply through the state procurement system, OregonBuys.
The application deadline is July 11 at 4 p.m. PST.
Funding priorities and requirements
This funding must:
- Be administered by a CDFI
- Provide guarantees for repayment of construction loans
- Serve low- or moderate-income households (up to 120% AMI)
- Guarantees may not exceed five-year terms
OHCS’ priorities for the CDFI’s use of this funding include:
- Prioritizing loans for small, rural, and culturally specific organizations
- Addressing historic disparities in lending practices
- Supporting projects that leverage other OHCS-administered development resources
- Prioritizing guarantees for loans for projects that serve households with lower AMIs
- Using CLG in a manner that allows projects to continue to move forward
- Emphasizing feasibility, longevity, and productivity
Request for Application
CDFIs interested in establishing this program and administering these funds are invited to apply through the open Request for Application (RFA) through OregonBuys. Here, you can learn more about eligibility, requirements, and the expected scope of activities. The application deadline is July 11 at 4 p.m. PST.
RFA resources:
To apply for an RFA, you must register for OregonBuys. For assistance with registration or any questions regarding OregonBuys, contact support.oregonbuys@das.oregon.gov or call 1-855-800-5046.
Watch the Construction Loan Guarantee RFA informational webinar.
After the application deadline, OHCS will review and score applications to select an awardee. Once a CDFI is selected, it will take some time to establish the Construction Loan Guarantee product. Please check this web page for updates, detailed eligibility information, more program details, and future application guidelines.