Through individualized technical assistance and flexible below market interest financing for predevelopment activities, the Predevelopment Loan Program (PLP) helps nonprofit and community based organizations, local governments, and public housing authorities plan, finance, and develop affordable housing. Eligible organizations may apply for a loan of up to $750,000. The loan carries a non-amortizing one percent interest rate, with principal and interest deferred until maturity. The loan generally matures either upon the closing of construction/permanent financing or three years after the original PLP loan closed, whichever occurs first.

PLP loans may be applied toward costs such as rezoning, soil tests, engineering fees, title searches, appraisals, feasibility analysis, legal fees, audit fees, earnest money deposit, impact fees, insurance fees, commitment fees, administrative costs, marketing expenses and acquisition expenses. These activities must be part of a nonprofit or governmental organization's efforts to develop housing for low income households. Specifically, rental developments must set aside 20 percent of its units for persons earning 50 percent or below of area median income (AMI). Homeownership developments must set aside 50 percent of their units for persons earning 80 percent or below of AMI and the other 50% to persons whose income does not exceed 120% of the AMI.

Once a loan application is approved, the applicant receives an invitation to participate in the PLP program and submits a $600 commitment fee. Florida Housing staff will then assign a technical assistance provider to work with the applicant on developing strategies for securing construction and permanent financing. The applicant is allowed six months to complete the development plan, which is reviewed, and the loan request is submitted to Florida Housing's Board of Directors for approval.

If approved, the applicant submits a final $600 commitment fee, and if funds are available, the loan is granted. If the applicant is successful in obtaining construction/permanent financing, the PLP loan is due upon closing of the permanent loan. The applicant will receive a credit for the $1,200 paid in commitment fees. There is an additional $100 application fee required at the time the application is submitted. Applications are accepted on an ongoing basis.