GAHC operates a loan consortium comprised of Georgia area financial institutions. Financial institutions participating in the GAHC Loan Consortium provide capital via membership pledges to the organization. The pledges are used to fund permanent loans for multi-family housing developments. Both private and nonprofit developers are eligible to apply for GAHC financing. GAHC administers and services the loans it originates from the time of loan application to the final payment, and the financial institutions that provide the capital for these loans receive their pro rated portion of the loan payment from GAHC.

By consolidating individual participations, the GAHC Loan Consortium leverages the underwriting and cost of money risks associated with full commitment, long term lending. In this way, partial investments also provide financial institutions (including those of moderate asset size) with the opportunity to participate in multi-family affordable housing lending on a larger-scale. In addition, their investment risk is reduced because funding comes from several sources. Similarly, the loan-to-value ratios associated with GAHC loans are generally lower because of the increased equity investment that results from the incorporation of low income housing tax credits, HOME funds, or other related affordable housing subsidies.

Products & Programs...

• Permanent Loans - GAHC provides the permanent loan for multi-family housing developments. State of Georgia Affordable housing construction has been increased by the presence of the organization's loan consortium, the funding source for GAHC permanent loans.
• Single Close Loans - This program allows GAHC to serve as the financial agent from the point of application to the funding of the permanent loan, a process that eliminates a developer's need to seek financing from multiple institutions and, thereby, undergo multiple closings. The GAHC Single Close Loan Program is available on both Construction and Permanent Loans.
• Pre-Development Loans for Nonprofit Developers - Pre-development costs include architect fees, market study, etc. Typically, these costs amount to tens of thousands of dollars. Most nonprofit developers do not readily have the cash reserves to cover such expenditures. By providing this loan product, GAHC has become a valuable financial resource for nonprofit organizations embarking on affordable housing construction.