Subdivision Development Financing Program
no fixed amount
Loan
Description:
The Subdivision Development Financing Program (SDFP) is a financing support pilot program that will help qualified developers offset infrastructure costs for long-term residential housing developments. This program will support projects funded through the Municipal Infrastructure Fund (MIF).
Comments on Funding:
This financing will be provided for a term of 5-years and amortized over a 25-year period. If there is outstanding debt at the end of the 5-year term, there will be an option to renew the loan at Finance PEI’s prevailing interest rate at the time of maturity.
Continuous Intake
Eligibility:
Applicants must demosntrate the following:
1. The proposed project has been approved through Municipal Infrastructure Fund.
2. The applicant has successfully completed a similar project on time and within budget. Alternatively, proponents will enter a fixed-price contract with a general contractor who has experience with projects of similar size, cost, and construction type in the same market area.
3. The financial viability of the applicant itself, including the capacity to carry the project over an extended period, and a good credit and repayment history.
4. The financial viability of the proposed project itself, including the capacity to manage development risks such as cost overruns and delays in construction.
5. Rural communities that have existing water and/or sewer infrastructure.
Application Steps:
Applicants must follow these steps:
1. Applications must first go to the Federation of PEI Municipalities for review as they are administering the Municipal Infrastructure Fund.
2. Eligible applications approved through Municipal Infrastructure Fund will be forwarded to Finance PEI, who will then complete their credit analysis and due diligence for the Subdivision Development Financing Program loan.
Documentation Needed:
No specific documentation has been identified
Other Things to Note:
About the author
Maurice
