Fort Myers Community Redevelopment Agency closes on Revolving Housing Loan

FORT MYERS, Fla.  — The Fort Myers Community Redevelopment Agency (CRA) has closed on another successful Revolving Housing Loan available in the Cleveland Avenue and Dr. MLK, Jr. Blvd. redevelopment areas.

Working with Catalyst Community Capital, the CRA has closed on a loan for the construction of affordable housing in the Dr. Martin Luther King Jr. redevelopment area.  This is the sixth project financed through the Revolving Loan Fund, which was created in 2022 by Catalyst and the CRA in an effort to create and preserve much-needed affordable and workforce housing in the city.

The Revolving Loan Fund was created to promote the creation, rehabilitation, and conservation of workforce housing and offers flexible terms for mission-aligned developers and investors. Loan amounts range from $100,000 to $1 million. In addition to funding, Catalyst provides technical assistance and mentorship to developers that utilize the Revolving Loan Fund.

The fund is to be used exclusively for the purpose of supporting developers seeking to construct housing targeting individuals that make 100 percent of the Area Median Income (AMI) or less.

“This is a pillar of the Fort Myers CRA’s overall affordable housing strategy of services and we are excited to have closed another loan,” Executive Director, Fort Myers CRA, Michele Hylton-Terry said. “The revolving loan program is meant to incentivize the development of affordable housing options, something desperately needed in our district.”

According to Hylton-Terry, loans acquired through this program must be repaid within 24 months.  Upon repayment back to CRA, the money returns to the trust fund so that it can be loaned out once again in the project area to build additional affordable housing units.

Catalyst Community Capital, Inc. (“Catalyst”), a Florida 501 (c)(3) nonprofit organization and certified Community Development Entity (CDE), is partnering with the CRA to create the loan fund. The loan fund will provide funding for the acquisition, development and preservation of affordable and workforce single family and multifamily properties located within the Cleveland Avenue and MLK CRA redevelopment areas.

The program primarily targets smaller projects, including single family homes and multifamily properties with less than 40 units.

Program participants also have the ability to participate in formal real estate development training and workshops facilitated by Catalyst, as well as one-on-one support from local developers and mentors. These local experts will provide project-specific guidance to further participants’ real estate development efforts.

Up to $1,000,000 is available for projects that meet the following criteria:

• Projects must be located within the Cleveland Area or MLK Area in order to participate in the Program.
• The loan must result in the creation or preservation of single or multifamily Workforce Housing (i.e., housing for people or families earning at or less than 100% AMI).
•  Applicants must have some experience with new construction or renovation projects.
• Properties financed through the Revolving Loan Fund must comply with the Program’s rent and income guidelines for at least ten (10) years from the receipt of Certificate of Occupancy.
• Applicant must make a minimum cash equity contribution equal to 5% of the total cost of the project.
• None of the units may at any time be occupied by the owner of the project or an individual related to the owner.

For more information visit fortmyerscra.com/incentives/community-redevelopment-agency-revolving-housing-loan-program, call Michael Maguire 813-319-3931 or email mike@catalystcd.com.

About the Fort Myers Community Redevelopment Agency (CRA)

The Fort Myers Community Redevelopment Agency was created in 1984 by the City of Fort Myers, Florida, under Florida Statute Chapter 163, to formulate a plan and strategy for the revitalization of the downtown River District.

The Fort Myers CRA has continued to grow, and redevelopment areas have been added throughout the city. Today, the Fort Myers Community Redevelopment Agency encourages and oversees redevelopment in four designated areas that contain a total of 14 distinct geographic sections within the Fort Myers city limits.

The Fort Myers CRA, along with the City’s Community Development Division, prepares plans for the revitalization of each area and coordinates the implementation of the plan’s recommendations. Tax Increment Funds (TIF) generated by each area, combined with other funding sources, are used to upgrade the public infrastructure and to stimulate redevelopment in the same area where it was generated.

The Fort Myers City Council members, sitting as the Community Redevelopment Agency Board of Commissioners, oversee the Agency’s divisions and their operations. The Fort Myers CRA office is located at 1400 Jackson Street in the Downtown River District.

About Catalyst Community Capital, Inc.

Catalyst Community Capital, Inc. is a 501 (c)(3) nonprofit organization that provides capital and technical assistance to small business owners and mission-aligned organizations in low-income and under-served communities along the West Coast of Florida. Catalyst provides loans from $100,000-5,000,000 and offers technical assistance and coaching to entrepreneurs looking to grow.