Predevelopment Loan Fund FY27
🏛 Virginia Housing Development Authority
✓ Free, no account · Source: Virginia state grants portal · Last verified Jul 20, 2026
Can you apply?
This grant is for nonprofits, for-profit companies, and public entities developing affordable multifamily rental housing in Virginia. Applicants must operate in the Commonwealth and demonstrate financial capacity with audited statements. Preference goes to organizations with prior Virginia Housing transactions and two years of successful payment history. The fund supports predevelopment expenses for REACH-eligible multifamily projects on an unsecured, 48-month loan basis.
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Program description
Notice of Funding Opportunity: Predevelopment Loan Fund July 2026 Funding Purpose: The Predevelopment Loan fund has been created to facilitate development of high quality affordable multifamily rental housing by providing below-market financing for typical predevelopment expenses. Eligibility Criteria: 501(c) 3 non-profit organizations, for-profit companies, and public entities including local governments and redevelopment and housing authorities are eligible. The organization must operate in the Commonwealth of Virginia. Preference is given to entities that have closed at least one transaction with Virginia Housing and show at least two years of successful payment history. Program Parameters: Organizations must provide a clear project description for a multifamily REACH eligible development. Predevelopment Loans will be unsecured for a 48 month term. The loan may not be used toward general operating expenses, developer fees and activities not connected with the creation and preservation of affordable housing. Applications must specify the sources and uses of funds. Eligible Predevelopment Loan Amounts are as follows: Projects under $5 million in total development costs are eligible up to $100,000. Projects between $5 million and $20 million in total development costs are eligible up to $250,000. Projects over $20 million in total development costs are eligible up to $500,000. Eligible applications are considered as submitted as long as funds remain. Click the handbook link below for a detailed explanation of the expenses allowed under this funding opportunity, disbursement and reporting requirements. Application Process: Due to funding availability, applications are reviewed on a first-come, first-served basis. All final applications are reviewed monthly by an internal committee. A Strategic Housing Initiatives program administrator is available to assist applicants with completing the application and performing due diligence associated with obtaining a Virginia Housing loan. Before submitting an application, contact Luke Tate, Community Outreach Regional Manager , at (804) 343-5778. Application Requirements: Predevelopment Loan Application and attachments Evidence of good standing from the Virginia State Corporation Commission Audited Financial Statements from two (2) most recent fiscal years and year-to-date financials Conceptual Pro forma Analysis with Proposed Sources and Uses. Evidence of local jurisdiction support (if applicable)
Who can apply
Eligible applicants
How to apply
Application links
Key dates & requirements
Required documents
- Predevelopment Loan Application
- Evidence of good standing (Virginia State Corporation Commission)
- Audited Financial Statements (2 most recent fiscal years + year-to-date)
- Conceptual Pro Forma Analysis with Proposed Sources and Uses
- Evidence of local jurisdiction support (if applicable)
Program contact
- 👤 Luke Tate
- 📧 Luke.Tate@VirginiaHousing.com
- 📞 8043435778
FAQ
Who is eligible for this predevelopment loan?
501(c)(3) nonprofits, for-profit companies, and public entities (local governments, housing authorities) operating in Virginia can apply. Prior experience with Virginia Housing is preferred but not required.
What are the loan terms?
Loans are unsecured with a 48-month term. Award amounts depend on total project development costs: under $5M (up to $100K), $5M–$20M (up to $250K), over $20M (up to $500K).
What expenses are eligible?
Only predevelopment costs for affordable multifamily housing qualify. General operating expenses, developer fees, and unrelated activities are not eligible.
How are applications reviewed?
Applications are reviewed on a rolling, first-come, first-served basis. Final decisions come monthly from an internal committee.
Is there a deadline for this round?
Applications are accepted as long as funds remain available. Contact the program administrator for current funding status.
💡 Tips for applicants
- Contact Luke Tate before submitting to clarify eligible expenses and application requirements. This prevents costly revisions later.
- Prepare detailed sources and uses documentation showing exactly how loan funds address project predevelopment needs.
- Gather audited financial statements and evidence of good standing from the Virginia State Corporation Commission before starting your application.
- If you have prior Virginia Housing transactions, emphasize your payment history and successful project closings prominently.
- Obtain local jurisdiction support documentation early, especially for projects requiring municipal approval or coordination.
⚠️ Common mistakes
Submitting vague project descriptions without clear REACH eligibility or affordable housing outcomes. Proposing loan use for ineligible activities like general operating expenses or developer fees. Failing to provide current audited financials or evidence of good standing from Virginia authorities.
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