A $2 million fund launched by Mayor Muriel Bowser in 2017 helps non-profit developers secure capital for pre-development soft costs – a common obstacle when financing affordable housing projects. Through the fund, which is named after the late Oramenta Newsome, developers can receive loans of up to $100,000 per project.
The fund was established with $1 million from the Housing Production Trust Fund (HPTF)and $1 million from the DC Housing Finance Agency’s (DCHFA) McKinney Act Fund. By providing early capital, the Oramenta Newsome Pre-development Loan Assistance Fund for Non-Profit Developers (Newsome Fund) can help qualified non-profit organizations and limited equity cooperatives (LECs) meet the application requirements of DHCD’s consolidated request for proposals (RFP) for affordable housing projects.
Funds are available on a rolling basis, and applicants can submit funding requests at any time, subject to fund availability. Developers will need to meet certain application and eligibility criteria and will have 1:1 match requirement for loan funds. They will be able to fulfill this requirement using grants, debt, or equity from any non-DHCD source, which may include DCHFA’s McKinney Act fund. The loan term will be for two years.