Cabarrus County unveils $2M revolving gap loan fund to support nonprofit affordable and workforce housing projects.
Cabarrus County, North Carolina, August 18, 2025
Cabarrus County has seeded a $2 million Revolving Construction Loan Gap Fund to provide short-term, low-interest (1%–3%) loans to nonprofits, government entities and mission-driven social ventures building permanently affordable and workforce housing. The fund is designed to close timing and capital gaps during construction, recycle repayments in perpetuity, and accelerate projects that expand homeownership and rental options for moderate- and lower-income households. Loan decisions will be made locally by the Permanent Housing Committee of Cabarrus with technical support from a banking partner. Program details and applications will be posted by the local housing partnership.
Cabarrus County has seeded a new Revolving Construction Loan Gap Fund with $2 million to provide short-term, low-interest loans to nonprofits and social ventures that build permanently affordable and workforce housing. The loans will carry interest rates between 1% and 3%, well below typical market rates for construction lending, and are intended to close timing and capital gaps that often stop or slow affordable housing projects.
The fund offers gap financing — short-term loans that cover costs during construction when other financing is delayed or unavailable. Eligible borrowers include local nonprofits, government entities and mission-driven social ventures working to build housing that stays affordable over time. Loan decisions will be made locally by the Permanent Housing Committee of Cabarrus, with technical support from a banking partner.
The idea grew from a city-level housing strategy and moved through local housing partnerships and advocacy campaigns. Community groups helped shape the fund concept and pressed for public investment to make upfront capital available to organizations that build shared-equity or permanently affordable housing. The county commission approved the $2 million seed, and the fund is structured to revolve in perpetuity, meaning repayments return to the fund to support future projects.
The fund will operate outside traditional loan systems, giving local stakeholders more control over how capital is deployed. The Permanent Housing Committee will set eligibility and underwriting guidance and will be assisted by a banking agency in evaluating loan requests and managing technical aspects of lending. The design aims to combine public seed capital with local decision-making and private-sector expertise.
Rising construction costs and tight lending markets have made affordable housing development difficult for nonprofits and smaller developers. Local leaders see gap financing at very low interest as a direct tool to reduce project costs, accelerate timelines and unlock additional investment from private and nonprofit partners. The fund is intended to help stabilize neighborhoods, expand access to home ownership and support economic mobility for workers and families in the county.
The public launch was scheduled for a county announcement at City Hall on a Tuesday morning. Officials directing people to learn more have noted that full details and application information will be available through the local housing partnership’s website, where a dedicated tab describes the Revolving Gap Loan structure and program rules.
The county and city have recently completed or moved forward on several housing projects aimed at expanding ownership and rental options. One neighborhood project added 26 townhomes on two acres to expand ownership opportunities, with units targeted at households earning at or below 80% of area median income and some units reserved up to 110% AMI. Those units were designed mostly for ownership, with a portion held as rentals to serve a range of household needs. Local partners used a mix of public funds and partnership finance to complete that development, and officials say the new revolving gap fund is meant to make it easier to start similar projects in the future.
The Permanent Housing Committee will include local stakeholders who can recommend and approve loans, balancing community priorities and financial prudence. The banking partner will provide underwriting support, loan servicing guidance and compliance help. The structure aims to keep control and oversight close to the community while using professional banking practices to manage risk.
Organizations interested in short-term construction gap loans should review program materials posted by the housing partnership and attend outreach sessions or committee meetings where application procedures and underwriting standards will be explained. The fund is designed to move quickly on eligible projects that can demonstrate public benefit and financial viability.
The fund is a county-seeded pool of capital that provides short-term, low-interest construction loans to nonprofits and social ventures building affordable and workforce housing.
The initial seed is $2 million provided by Cabarrus County.
Eligible borrowers include local nonprofits, government entities and mission-driven social ventures focused on permanently affordable or workforce housing.
Loans are short-term construction gap loans offered at interest rates of 1% to 3%, intended to be lower than average market-rate construction loans.
The Permanent Housing Committee of Cabarrus will make funding decisions, with assistance from a banking partner for underwriting and technical review.
Complete program details will be posted by the local housing partnership, including eligibility rules, application steps and required documents. Outreach and public meetings will explain the process.
| Feature | Details |
|---|---|
| Seed funding | $2,000,000 from Cabarrus County |
| Loan purpose | Short-term construction gap financing for affordable and workforce housing |
| Interest rates | 1% to 3% (short-term) |
| Eligible borrowers | Nonprofits, government entities, social ventures |
| Decision makers | Permanent Housing Committee of Cabarrus, with banking partner assistance |
| Operating model | Revolving fund designed to recycle repayments for future projects |
| Primary goal | Increase production and preservation of permanently affordable and workforce housing |
| How to learn more | Program materials and application details posted by local housing partnership |
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