Vigo County & The City of Terre Haute

Revolving Loan Fund

Building housing units is a tall order in today’s world where supply chains change constantly; the labor pool is ever-changing, and having a steady line of capital is a must. Thrive West Central has partnered with Vigo County and the City of Terre Haute to create a long-term revolving loan fund to help builders and developers overcome some of the challenges of building in today’s world.

Eligibility Criteria

  • Project must be located within Vigo County
  • Applicants must be a builder or developer in good standing with all state and local government agencies having jurisdiction. Projects must be approved through Thrive’s housing scoring committee.
  • Proof of site control is required in part or full depending on the project.
  • Must meet local zoning and permitting requirements
  • Builder must demonstrate relevant construction experience and have a contractor’s license/certification
  • Applicants must be current on all taxes and have no open judgments that affect project security
  • Proof of builder’s risk and general liability insurance
  • Completed plans, budget, and timeline must be submitted
  • Project must represent residential construction or significant rehabilitation
  • Funds must be used for eligible direct project costs
  • Applicants must demonstrate adequate financial capacity to complete the project

Incentive Details

(Loan Terms)

  • Loan Amount: No maximum; subject to underwriting
  • Loan Term: Up to 7 years (3-5 years preferred unless a strong case is demonstrated)
  • Interest Rate: Fixed, determined through internal scoring; range +2% through -2% of Prime Interest Rate on quarter percent increments.
  • Disbursement: Full amount released at closing
  • Closing Fee: Flat $3,000
  • Prepayment: No penalty

  • Eligible Uses: Land, site work, construction, rehab, soft costs, material costs

  • Ineligible Uses: Equipment purchases, debt consolidation, non-housing projects
  • Collateral: Mortgage on subject property; additional security as needed
  • Insurance: Builder’s risk and general liability required; proof of insurance required

Required Documentation

Criteria

Request For Funding Proposal (RFP)

Thrive has created an RFP process that is publicly solicited and advertised for any parties interested in home development throughout Vigo Counties..

Eligibility Criteria

Applicants must have a demonstrated experience of five years or longer in the development of housing units and have the capacity to build a minimum of three housing units per year before September 2028. Exceptions will be considered by the committee. For-profit, cooperatives, public entities, and non-profit organizations are eligible to apply. Applicants must be in good standing with local, state, and federal units of government and demonstrate a good financial history as well as current and future financial capacity.

Eligible Project Location

Eligible projects must be located within Vigo County.

Requirements

Awardees will be required to have a minimum of two bids for every expense, along with a written narrative for selection considerations. Upon completion of work (infrastructure), photographic evidence of completion is required. All records will be required for submission prior to reimbursement. Thrive West Central will retain all records for five (5) years.

Support & Information

Support and Assistance Info

Each applicant is encouraged to participate in a pre-application meeting to assist with application development. Thrive will provide technical assistance during the application process. Thrive, and their project partners will provide technical assistance during the project development, implementation, and closeout.

Post-Completion Expectations

Post-completion expectations are that builders/developers offer a one-year warranty on all units to encourage quality developments.

Penalties for Non-Compliance

Developers/builders are required to submit a timeline for the completion of any projects and adhere to, within reason, any agreed-upon timeline for development. Periodic updates and communication will be an essential part of any award. Developers who fall behind in their construction timelines may see all or a partially awarded funds reallocated to other applicants or awardees.

If the final project does not meet the approved criteria specified in the proposal, awardees may see a penalty resulting in reduction of their award.

Payment Structure

The borrower shall make regular monthly payments to the lender in accordance with the terms set forth in the loan agreement. Payments not received within ten (10) days of the due date may be considered late and subject to applicable fees. The repayment obligation will continue until the principal balance has been satisfied in full.

Feedback and Reapplication

If an application is not successful, feedback will be provided. Applicants are allowed to reapply if there are subsequent RFP rounds and improvements are made to their application proposal

Process

Submission documents

  • 1

    Completed Loan Application Download

  • 2

    Proof of site control (deed, purchase agreement, or option agreement)

  • 3

    Proof of local/state approval

  • 4

    Project budget and construction timeline

  • 5

    Construction plans/drawings

  • 6

    Builder’s risk and general liability insurance documentation

  • 7

    Two years’ personal tax returns (all principal owners)

  • 8
    Two years’ business tax returns (if applicable)
  • 9

    Credit Report

  • 10

    Personal financial statement

Scoring and Evaluation

RFP rounds will be issued on a periodic basis based on available funding. The selection committee will score, and award proposals based on a scoring rubric. The categories for scoring are:

  • Proposal details and thoroughness of the plan
  • Housing type is in alignment with ZVA regional or local market potential analysis needs
  • Scale/quantity of developed units/impact on the environment
  • Quality of build, impact on the community, and consideration of age-friendly housing
  • Overall competitiveness of the proposal

Environment and Sustainability Considerations

  • Online, rolling application and awards
  • Thrive West Central Housing Hub team will serve as technical advisors for application development
  • Thrive uses an independent scoring committee made up of industry professionals from around the State.

Timeline

We have rolling RFPs (applications) that start and end every 4 to 6 weeks.   We have a rolling RFP that closes on the 12th of each month.  Applications are reviewed at the end of every month and awards are made following.