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 created a new Revolving Construction Loan Gap Fund seeded with $2 million to provide short-term, low-interest construction loans aimed at helping nonprofits and mission-driven developers build permanently affordable and workforce housing. The fund will offer loans at interest rates of 1% to 3%, significantly below typical market construction loan rates for attainable housing.
The fund is designed to fill the capital shortfalls that often stop affordable housing projects from moving forward. It will make gap loans for construction that cover timing and cost mismatches between traditional financing sources and project needs. Loans are intended to be short term and structured so the capital revolves in perpetuity, returning to the pool to fund additional projects over time.
Loan decisions will be made through the Permanent Housing Committee of Cabarrus, which will include local nonprofit representatives, government participants and resident input. The committee will receive technical assistance from a local banking partner, F&M Bank, to help evaluate loan applications and structure financing. The fund is set up to operate outside traditional loan systems to allow more flexible underwriting for mission-aligned projects.
The idea began as part of a strategic plan developed by a local housing initiative and was carried forward by the county housing collaborative and community organizations focused on permanently affordable housing and shared equity models. Local advocacy and organized campaigns emphasizing public stewardship of housing dollars helped secure approval from county leadership for the seed funding and governance approach.
A public announcement was scheduled for Tuesday, August 19 at 10 a.m. at City Hall, 35 Cabarrus Ave. W., Concord. People seeking full program details and application guidance are directed to the local housing initiative’s website where a dedicated Revolving Gap Loan page contains program guidelines, eligibility criteria and contact information.
County leaders view the fund as a tool to spur more private and nonprofit investment in affordable and workforce housing and to improve economic mobility for workers and residents. The low-cost capital is intended to make projects that are otherwise stalled by high construction costs and tight financing more feasible.
The fund comes at a time when several local housing initiatives have been underway. A recent neighborhood development added 26 townhomes intended to expand homeownership opportunities in a long-neglected area. Those units include three-bedroom townhomes reserved for qualifying buyers at prices starting in the mid-$200,000s, with income targeting at or below 80% of the area median income and a portion set aside for households up to 110% AMI. That project faced delays during construction due to zoning, engineering, and unexpected underground infrastructure issues, illustrating the kinds of challenges the new fund aims to address.
Beyond the county, larger regional and out-of-state projects demonstrate the range of development models being pursued, from single-family home subdivisions to large multi-family affordable developments with supportive amenities. Common obstacles remain land and construction costs, permitting timelines and the need for initial capital before longer-term financing and subsidies become available.
The fund is structured to empower mission-aligned groups to move projects forward without relying solely on conventional commercial loans. By offering interest rates far below market and a revolving structure, the program aims to reduce the upfront capital barrier, accelerate construction timelines and preserve affordability over the long term.
Nonprofits, social ventures and public entities interested in applying should review the fund details posted online and plan to engage with the Permanent Housing Committee for guidance on eligibility and application timing. The committee, supported by banking staff, will vet applications, prioritize projects that preserve long-term affordability and seek to balance ownership and rental options that serve workers, families and seniors.
The fund is a county-seeded pool of capital that provides short-term, low-interest gap loans to nonprofits and mission-driven developers to close financing gaps during construction of affordable and workforce housing.
Eligible borrowers include nonprofit housing developers, social ventures and certain government entities working on affordable or workforce housing projects that meet program criteria.
Loans will be short term and offered at interest rates between 1% and 3%. Specific terms, amounts and collateral expectations will be determined case by case by the Permanent Housing Committee with bank assistance.
The Permanent Housing Committee of Cabarrus will review and approve loan requests, with technical and underwriting support from a partnering bank.
The fund is designed to be revolving, meaning repayments return to the fund to finance additional projects, enabling long-term reuse of public seed capital.
Program details and application materials are posted on the housing initiative’s website. The public announcement was scheduled for the county city hall on the date provided and interested parties were invited to attend for full details.
| Feature | Details |
|---|---|
| Seed funding | $2,000,000 provided by the county |
| Loan type | Short-term construction gap loans |
| Interest rates | 1%–3% |
| Eligible borrowers | Nonprofits, social ventures and certain government entities |
| Decision body | Permanent Housing Committee of Cabarrus with bank assistance |
| Bank partner | F&M Bank (technical assistance and underwriting support) |
| Fund structure | Revolving — repayments return to the pool for future projects |
| Primary goal | Accelerate construction and preservation of permanently affordable and workforce housing |
| Public info | Program details available on the local housing initiative website and via the public announcement at City Hall |
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