This year, PAWV hired Terrell Ellis & Associates (TEA) to examine the feasibility of establishing a revolving loan fund to protect historic properties in West Virginia. If determined feasible, TEA was given the task to make recommendations on the structure and management of a historic preservation revolving loan program.
In researching this matter, TEA interviewed 23 individuals representing a combination of community developers, nonprofit and for profit lenders, private developers, and professional service providers. TEA also surveyed 37 historic property owners and community developers. Based on this research, TEA recommended that PAWV move forward with the development of a revolving loan program based on the following parameters:
- Target historically significant and/or endangered properties;
- Include restrictive covenants in the program design to ensure compliance with the Secretary of Interior Standards;
- Establish funding priorities in “Main Street” commercial type projects and endangered properties;
- Use loan funds for predevelopment funds to get a project in position for financing and for flexible financing, such as bridge loans, for predevelopment, acquisition, and rehabilitation expenses that will accept deferred payments until a project is done and cash flowing;
- Manage the fund in partnership with a nonprofit organization that understands nonprofit lending and mission driven development activity but that also has the background and expertise in financial analysis and loan underwriting;
- Aim for initial capitalization of the loan program at $100,000; and
- Loan only to projects that demonstrate a commitment to leveraging the multiple resources available to fund historic properties.
Now that the feasibility study has been completed, and the recommendation has been made to proceed in creating a historic properties revolving loan program, PAWV will apply for a second round of grant funds from the 1772 Foundation to develop a business plan. PAWV will also identify a nonprofit organizational partner and start raising funds for the initial capitalization of the loan program. PAWV will have the bulk of 2017 to create a business plan and fundraise for this program if awarded funds from the 1772 Foundation. Consider increasing your donation to PAWV to help us make the loan program a reality. Visit http://www.pawv.org and donate through PayPal – the button is at the bottom left-hand corner of the homepage.
The feasibility study was made possible with generous grant funding from the 1772 Foundation. The 1772 Foundation works to ensure the safe passage of our historic buildings and farmlands for future generations. To learn more visit, http://www.1772foundation.org/. For a full copy of the feasibility study, email our executive director, Danielle LaPresta at firstname.lastname@example.org.