Everything we do at CSH is about advancing our mission to help communities create high-quality supportive housing to prevent and end homelessness. Even in our capacity as a CDFI, CSH looks for innovative ways to use our lending products to strengthen the field of supportive housing.
One of our most unique lending products, Project Initiation Loans (PILs) was established in 1992. We saw a gap in conventional financing approaches that was derailing supportive housing development. In the earliest stages of a project, developers trying to cover pre-development costs would often have to identify a source of loan repayment. Without those financing commitments, obtaining a pre-development loan was nearly impossible. Supportive housing developers were stuck, their projects were seen as too risky for many lenders, but without initial funding, their projects could not become viable. CSH created a solution with our PILs.
These early stage loans help get projects off the ground. We take on more risk than a typical community development lenders will, so that developers have access to just enough money to advance the project to a point where traditional pre-development loans can be secured.
Thanks to PILs, we've been able to scale supportive housing development nationally. The recently opened Kingstown Crossing residence in Providence, Rhode Island is just one great example. "The support we received from the Corporation for Supportive Housing in the form of a pre-development loan was the foundation on which we were able to build this exciting project. Now we have beautiful, safe, energy-efficient homes where families can be proud to live," said Michelle Wilcox, Chief Operating Officer Crossroads, Rhode Island.
To date, we have been provided over 350 Project Initiation Loans totaling over $16 million.