Our friends at the Kansas City chapter of the Local Initiatives Support Corporation (LISC) recently announced a new $4 Million program geared toward predevelopment in Downtown KCK: the Catalytic Urban Predevelopment Fund.
The Catalytic Predevelopment Fund provides low-interest, flexible predevelopment loans for projects in the urban core of Kansas City, Kansas. The fund acts as a catalyst to spur development in low to moderate income neighborhoods by providing the critical capital necessary in the early phases of real estate development projects.
Eligible borrowers include both non-profit and for-profit developers planning a variety of projects including affordable and mixed-income housing, commercial development, community facilities, and mixed-use projects. Special project investments at 0% interest may be available for technical assistance and early-stage activities for eligible applicants.
- Annual interest rate: 4% (Special project investments at 0% may also be available)
- Average loan size: $250,000
- Loan term: Up to 3 years, interest monthly, principal due at maturity
- Loan to value & Security: Variable
Predevelopment loans are for project planning, design, acquisition, and environmental assessments that normally precede construction. Predevelopment activities include but are not limited to:
- Project conception, Environmental consultants, Site selection
- Finance consultants & fees, Market research, Development consultants
- Pro forma development, Market studies, Legal services
- Community engagement, Appraisals, Architect/Engineer services
Preference is given to projects within one mile of a school and in LISC’s three focus areas of the Historic Northeast and Troost/Prospect Corridors of KCMO; and Downtown KCK. We encourage everyone with an interest in this program to contact us for additional information.
To download a PDF copy of the Catalytic Urban Predevelopment Fund Brochure, click here.