Requirements & Conditions
For Developers
Information for developers seeking financing for to-be-built and rehab real estate projects
- Detailed description of the project (description of building(s), rendering, market description, prospective tenants, construction timetable, expected lease rates, absorption period, etc.).
- Site specifics; description of site, location, land cost, ownership status (under option, owned by developer, etc.), site plan, status of zoning and site plan approval.
- Detailed list of estimated project costs (hard and soft costs).
- Financial projection demonstrating the viability of the project.
- Principals/entities involved in project; developer, investors, general contractor, etc.
- Brief discussion of market and competitive advantages of the project.
- Personal References/Developer Financial Statements.
- Financing required.
- construction loan
- equity
Requirements
- An ALTA survey.
- An ALTA extended title policy.
- A current environmental report (Phase I and, if necessary, Phase II). ECAP must be named as a party on the report, however in some situations a reliance letter may be acceptable.
- An acceptable USPAP conforming appraisal by a firm that is acceptable to ECAP and substantiates ECAP's investment/loan. The appraisal should include “as is”, “as completed”, and “as stabilized” values for the project. ECAP must be named as a party on the report.
- Proof of final regulatory approval for the project, including zoning and site plan approval. Building permits can be pulled when actual construction starts.
- Project plans, specifications, and a final project budget in sufficient detail to properly evaluate the project.
- If applicable, closing on a construction/mini-permanent loan from a bank on terms and conditions that are comparable to the market. The senior loan documents must require construction draw requests that are in accordance with standard AIA conforming construction documents.
- If applicable, an acceptable purchase agreement for the project site.
- If applicable, an acceptable lease(s) with prospective tenants.
- As applicable, acceptable loan and subordination agreements with ECAP or an acceptable Operating Agreement for the LLC.
- Various representations from Developer, including that the project budget is final and will not be exceeded, that all land use requirements are met, and that all environmental issues are and will be in compliance.
