The Lowcountry Housing Trust aims to be a flexible funding source and strives to expedite and streamline the application, review, and funding process. However, we take seriously the need to conscientiously underwrite projects and to follow all legal and administrative procedures deemed necessary to secure our financial interests, including the recording of a mortgage on all funded units or property.
The application process takes approximately 60 days to complete. The Lowcountry Housing Trust Board meets every other month to review applications. Please plan your project accordingly.
|Loan Amount||Who has Authority to Approve|
|Up to $25,000, so long as no exceptions to these lending policies are requested||Lending Staff with the approval of the Executive Director. Lending staff sends quarterly reports of loans approved to the Loan Committee and the Board of Directors|
|$25,000 up to $250,000, so long as no exceptions to these lending policies are requested||Loan Committee. Loan Committee sends quarterly reports of loans approved to the Board of Directors|
|Over $250,000 and all loan requests which require an exception to these lending policies||Board of Directors|
Denial of Loan Request
A loan request may be denied for any or all of the following reasons:
- The loan does not fit within LHT’s mission
- The risk of repayment is unacceptable
- The portfolio would be materially out of compliance with established diversification requirements
- Insufficient information
- The loan requires exceptions to this Loan Policy that would unacceptably increase the risk of nonpayment
- Funding for the loan is not available. In this case, the applicant is informed that the approval is deferred until funding is available. If funding is delayed for six months or longer, Loan staff will re-underwrite the request and re-submit to the Executive Director and Loan Committee for approval.
If the loan is denied, the Lending Director will send the applicant a letter stating the reason(s) for the denial. In most cases, the Lending Director will include suggestions to make a future application stronger. LHT staff may provide additional technical assistance if appropriate.
In these cases, the application fee can be applied to one future re-application if the Applicant re-applies within six months of the date of the letter.
If the loan is approved, the Credit Memo becomes the “Loan Approval”. Any additional terms or conditions imposed by the approving body are added.
Loan Closing Procedure
Funding recipient is to provide at least 10 days notice to LHT of each anticipated closing date and contact information for the recipient’s closing attorney.
LHT’s attorneys will provide the following documents, if applicable, to the award recipient’s attorney for review and execution by recipient:
- Restrictive Covenant Agreement
- Loan Agreement
- Promissory Note
Award recipient’s attorney will provide the following documents to LHT’s attorney prior to closing:
- Land Documents
- Title Insurance Commitment, Copy of Exceptions, Legal descriptions, and Deed
- Title Policy and Endorsements
- Certificate of Occupancy
- Closing Documents
- Proof of Insurance (liability, hazard, and flood, where applicable)
- Recorded Loan Docs
- Closing Statement
- Corporate Documents
- Certificate of Existence
- Articles of Incorporation
- Company Resolution Authorizing Transaction
- 501(c)3 Tax Exemption Letter
- Recipient receives funding disbursement(s)
McNair Law Firm, P.A.
c/o Rhonda R. Tapley, Esq.
P.O. Box 1431 Charleston, SC 29402-1431
Phone: 843.723.7831 Fax: 843.805.6559
Click to download LHT's LOAN POLICIES AND PROCEDURES MANUAL.