For the last several months your HBA has been working on a potential solution to the problem some builders are having securing financing for their construction projects. The solution lies in a partnership between Wall Street investors, your Home Builders Association, and the South Carolina Housing, Finance, and Development Authority.
To gather the information necessary to put this new program together, we need your help by completing a survey. Please answer the questions as they pertain to the specific financing of a typical home you have completed and sold within the past 18 months. Completed surveys should be returned to Mark Nix, HBA of South Carolina, 1419 Pendleton Street, Columbia, SC 29201.
Traditionally, commercial banks and savings institutions have provided most of the credit for residential AD&C activities. However, even in the recovery from the recession a more restrictive regulatory environment is limiting the capacity and willingness of these lenders to resume that dominant role. Private debt and equity funds are expressing interest in filling the construction lending gap.
In an effort to provide the investors with a better understanding of construction financing needs, your HBA is conducting the survey to obtain examples of construction loans that can illustrate a typical deal structure for small to mid-sized home builders.
This project is being coordinated by the National Association of Home Builders. Columbia HBA member Ken Ormand, a member of the state housing authority board, also is assisting with this project.