Resident Ownership Capital, LLC (or “ROC USA Capital”) was formed to provide community purchase financing to resident corporations that are supported by a Certified Technical Assistance Provider. Therefore, ROC USA Capital’s loan products are specifically designed for the needs of resident corporations, from pre-development loans to community acquisition-permanent loans at 100% of a community’s appraised value plus closing costs.
Whether the 32-site Green Acres Cooperative in Kalispell, Montana which required $852,000 in financing, the 54-site Meadow Valley Park in Unadilla, New York which was purchased by its homeowners at auction in 52 days or the 174-site Ryder Woods community in Milford, Connecticut which required a $5.4 million 15-year acquisition- permanent loan, ROC USA Capital is meeting the financing needs of resident corporations, small and large.
Since some commercial banks will lend 75 percent of the purchase price, the historic problem for resident corporations has been the “down-payment” gap (from 80 to 100 percent of the price/value).
Historically, this need for down-payment has produced one of three outcomes:
- The resident corporation fails due to lack of sufficient financing, or never gets off the ground in the first place because the homeowners and/or the seller doesn’t believe it’s possible.
- Homeowners who can afford large share values raise the down-payment funds that the resident corporation needs.(Often, though, this creates two classes of homeowners – members and non-members – and a situation which we have seen too many times, divided communities.)
- The resident corporation finds a non-profit or government agency that is willing to lend the down-payment piece.
ROC USA Capital provides the whole loan, the portion commercial banks might provide, as well as the “down-payment” piece.ROC USA Capital’s community acquisition-permanent loan product is efficient, timely and meets the needs of resident corporation borrowers.It helps the resident corporation meet the seller’s desire for a timely closing, since they don’t often like to wait for resident corporations to assemble financing from multiple sources.
The U.S. Department of Treasury has recognized ROC USA Capital’s specialized financing for resident-owned communities and has certified ROC USA Capital as a Community Development Financial Institution (a “CDFI”). In addition to Treasury’s CDFI Fund, ROC USA Capital has also leveraged debt and/or equity from:
- Bank of America
- Deutsche Bank
- Housing Development Fund of Connecticut
- Minnesota Housing Finance Agency
- NCB Capital Impact
- New York Housing Finance Agency
- Opportunity Finance Network
- The Ford Foundation
- The Calvert Foundation
For more information on ROC USA Capital, contact its Managing Director, Michael Sloss at (603)724-8370.