Preservation Loan
Purchase of Existing Project to Convert to Affordable
Closed Loans

Preservation Loan


This short-term loan provides funds to a qualified borrower to purchase an existing multifamily, affordable housing property. Qualified borrowers are typically in the form of a single asset entity with the sponsor providing a guaranty. The loan is designed to provide short-term financing to enable the borrower to purchase the property; renew Federal subsidy contracts; and assemble construction and/or long term financing.

The maximum Loan to Value (LTV) will be capped at 95% of the lesser of “hypothetical as is” market value, or “as is” restricted value (maximum 75% to for-profit borrowers). The loan will be secured by the property. NOAH loans will be in a 1st lien position. Click here for a term sheet for this short-term acquisition loan.

Limited funds are also available for another loan to address gaps in acquisition financing.  This loan, used only in conjunction with an OHAF preservation loan, allows for a total LTV of as much as 120% of the lesser of "hypothetical as is" market value, "as is" restricted value, or the project's acquisition price.  Click here for a term sheet for this gap loan.

NOAH’s Highly Accessible Land Loan provides funding to enter into a land purchase contract and/or purchase land that is transit-oriented or is in close proximity to social and/or commercial services.  This program is targeted toward NOAH’s strongest borrowers.  Eligible borrowers include for-profit and non-profit entities including corporations, partnerships, limited liability companies, municipal or public corporations, or individuals that are duly authorized to conduct business in the state of Oregon. To access this loan the borrower must have a lending relationship with NOAH and all loans must be in good standing.  Land purchases financed with this loan must be developed as affordable housing. Click here for a term sheet for this loan.

Qualified properties will include projects with existing HUD Section 8 project-based assistance or Rural Development (RD) Rental Assistance, FHA or RD BMIR loan program, Section 42 tax credits, other state or federal subsidy programs.

Please note that access to state or local funding sources may be restricted, and that access to OHCS Housing Preservation Funds for gap financing is limited to existing subsidized properties with expiring HUD Section 8 project-based assistance contracts or Rural Development Rental Assistance contracts.

To discuss a program, please contact Preservation Director, Rob Prasch, at 503.501.5688 or