On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Kent sits down with Sean Doss, Director of Loan Originations and Business Development at Nonprofit Finance Fund, a national CDFI that has deployed over $1.7 billion to nonprofits and affordable housing developers over 45 years.

This episode breaks down how CDFIs fill the financing gap that commercial banks can't touch. Sean explains the APSH (Accelerating Permanent Supportive Housing) Loan Fund: a 3-year, unsecured, enterprise-level working capital loan at 5.5-6% that lets nonprofit developers manage an entire project pipeline instead of waiting on one grant at a time. He also covers what NFF actually looks for when underwriting a borrower, how an emerging developer secured a $2 million unsecured loan, and why a single affordable housing project can end up with 13 separate funders on one call.

Common Questions This Podcast Episode Answers:

What is a CDFI and how does it fund affordable housing development?

A CDFI (Community Development Financial Institution) is a specialized lender serving nonprofits and low-income communities. Organizations like Nonprofit Finance Fund receive capital from commercial banks through Community Reinvestment Act (CRA) requirements and redeploy it as below-market loans to affordable housing developers. 

Why don't commercial banks lend directly to affordable housing nonprofits?

Commercial banks lack the expertise to underwrite nonprofits that rely on public funding streams, LIHTC allocations, and government grants. CDFIs specialize in understanding housing policy, public subsidy structures, and nonprofit cash flow, making them the right lender for this borrower type.

What is the APSH Loan Fund for nonprofit affordable housing developers?

The APSH (Accelerating Permanent Supportive Housing) Loan Fund is a 3-year, unsecured, enterprise-level working capital loan from Nonprofit Finance Fund. Developers can use it across multiple projects and recycle it as needed. It launched in late 2019 and targets established nonprofit developers in Los Angeles and adjacent counties.

What interest rate does Nonprofit Finance Fund charge on its unsecured pre-development loan?

The current rate is approximately 5.5% to 6%. NFF can keep the rate low because it sources capital from foundations, banks, and the CDFI Fund, which carry a lower cost of capital than conventional commercial lenders.

What does a CDFI look for when evaluating a nonprofit affordable housing developer?

NFF is a cash flow lender. It focuses on the borrower's ability to execute, mission alignment, transparency with financials, knowledge of housing policy, and track record navigating funding changes. Even emerging developers can qualify if they demonstrate community engagement, a capable board, and a clear understanding of the funding process.

How much can a nonprofit developer borrow from Nonprofit Finance Fund?

Loan commitments range from $250,000 to $8 million. Lines of credit max out at $3 million. For deals that exceed $8 million, NFF has a network of CDFI partners who can co-lend to make the deal work. 

Why is affordable housing so expensive and slow to build?
A single affordable housing project can require capital from 13 or more separate funding sources, including LIHTC, city soft loans, foundation grants, and CRA dollars. That coordination burden slows projects and drives up costs. Federal-level capital intervention at scale is what the problem ultimately requires. 

If you have questions or want to connect with Sean, you can reach him via email at: [email protected]

Don't forget to check out Nonprofit Finance Fund's work at:  nff.org/our-work/focus-areas/

Please DM any questions or content suggestions to Kent Fai He, affordable housing developer, educator, and host of the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments in the United States.

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. This is not an offer or solicitation for any investments. Always do your own research before making investment decisions.  #SeanDoss

00:00 Podcast Trailer
03:09 Sean's Background
09:27 What Is the Nonprofit Finance Fund and How Does It Work?
11:14 What is a CDFI and why do big banks fund them for nonprofits?
18:15 Why enterprise-level loans from NFF creates flexibility for qualified developers!
18:47 How Can Nonprofit Developers Fill Pre-Development Funding Gaps?
22:02 How to Get Unsecured Working Capital for Nonprofit Developers (5.5–6% Interest Rate?!)
25:03 Nonprofit Loans from $250K to $8M: Flexible Funding Options Explained
27:14 How Can Nonprofits Get 85–90% Loan-to-Cost Financing
32:23 How an emerging developer got a $2M unsecured loan
37:43 Why Is Affordable housing (i.e. lack of supply)  Hard to Solve 
42:30 Where/How to contact Sean?