Redding Affordable Housing Loan Fund

In 2006 the Lowe’s Home Improvement retail corporation donated $1 million in funds to the City of Redding in exchange for constructing a new Lowe’s on land previously set aside for affordable housing development.  The City’s Housing Division issued a Request for Proposals on how best to use the Lowe’s mitigation fee to support the development of affordable housing. 

The Redding Affordable Housing Loan Fund Committee was formed to develop a way to use the $1 million as leverage to attract private sector participation, and to establish a locally-controlled fund that will benefit many community projects, rather than using it to fund a single project.  The Redding City Council approved this use of the $1 million mitigation fee. 

Since 2007, the Committee has worked diligently to create a sound model for a collaborative revolving loan fund housed at the Shasta Regional Community Foundation.   During that time Catholic Healthcare West pledged $1.5 million to the fund, and PremierWest Bank, Redding Bank of Commerce and Northern California Community Loan Fund each pledged $1 million. With these partners the fund has a total of $5.5 million in funds available for loans.

The RAHLF will offer loans at affordable rates and flexible terms to finance the development of affordable housing projects that fulfill the City’s priorities for income levels, affordability period, and neighborhood location.  Loans will be made collaboratively, funded by all of the partners on a pro rata basis.

The Northern California Community Loan Fund is the lead lender and administrator for the loan fund.  The Community Foundation’s role is to organize and convene the partners when necessary and house the fund created by the City of Redding.

Program Guidelines:

The Redding Affordable Housing Loan Fund provides short-term loans (up to five years) for affordable housing (single family, multifamily and special needs). Loans are available for:

• Acquisition
• Predevelopment
• Site development
• Unit construction
• Acquisition/Rehabilitation

A total of $5,000,000 in loan funds is available on a first come, first serve basis.

Loan Term:

• Term Up to five years
• Maximum Loan Amount: $1,000,000
• Loan Fees:
                  Commitment Fee: 1%
                  Closing Fee: 1%
• Collateral: Real estate, subordination to conventional lenders considered.
• Loan-to-Value: Up to 75%
• City of Redding Regulatory Agreement required
• Borrowers must be nonprofit 501(c)(3) agencies
• Projects must be located in the City of Redding
• Ultimate beneficiaries must be low or very low income persons (80% of area median income or below)

Application Process:

• Mail completed application and all required materials to Shasta Regional Community Foundation
• Once all information is received, notifications will occur in 4-8 weeks.

For general questions regarding this loan fund, please contact the Community Foundation at 530.244.1219 or info@shastarcf.org.

For technical questions, please contact Catherine Howard at the Northern California Community Loan Fund at 415-392-8215 x318 or choward@ncclf.org.