the 400,000 square-foot Plaza Pacoima shopping center project in Northeast San Fernando Valley

The Major Projects Loan Program offers long term, fixed rate financing for large-scale real estate commercial development projects. Such projects could include industrial parks, hotels, office buildings, mixed-use projects, and large shopping centers. These projects must provide a HUD-specific public benefit that create or retain full-time equivalent jobs, or goods and services to low and moderate income communities.

In addition to meeting HUD requirements, projects to be considered must meet one of the following criteria:
  • Revenue Generation
  • Investment in Targeted Communities
  • WorkSource Hiring Commitment
Loan Amounts can range from $500,000 to $30,000,000. The interest rate can range from HUD Cost of Funds +2.5-4.5% for rehabilitation/new construction and HUD Cost of Funds +4-6% for acquisition. The maximum city participation is 20% of total project value for rehabilitation/new construction loans and 25% for acquisition loans.

Loan terms are no longer than 20 years for rehabilitation and/or construction, and 5 years on acquisition loans. Eligible activities are property acquisition, equipment purchase, new construction and related soft costs. Loans may be used with private and public funds.

Applicants must show that traditional bank financing is not available, or not available in the amounts needed, or at terms the company cannot afford to do the project. For questions and to apply, please contact Angelica Nuñez at 213-744-9377 or This email address is being protected from spambots. You need JavaScript enabled to view it..