Debt

Our vision is a country in which owners of efficient and affordable manufactured homes are economically secure in healthy and socially vibrant resident-owned communities.

ROC USA, LLC is a nonprofit social venture that operates with two wholly-owned subsidiaries:

  1. ROC USA® Network, in which regional and statewide nonprofit affiliates provide pre- and post-purchase training and technical assistance in communities and lead local partnership development; and,
  2. ROC USA® Capital, which provides specialized financing to co-ops under contract with a Network affiliate. ROC USA Capital is a U.S. Treasury-certified Community Development Financial Institution (CDFI). 

ROC USA Capital raises debt in two distinct ways:

First, ROC USA Capital raises debt on its balance sheet to hold the subordinate tranche of first mortgage loans made to ROCs. Our minimum loan size is $1 million.

To match our sources and uses, 10- to 15-year term loans are most useful.  ROC USA Capital pays interest on borrowed funds between 1 and 4 percent.

Our largest lenders are Prudential, the Ford Foundation and Bank of America. We don’t presently have any individuals, however we would welcome some.

Please note: Loans to ROC USA Capital are unsecured loans and not insured or guaranteed.  ROC USA Capital has a 100 percent repayment rate to lenders and lenders are protected by covenants, including a Net Asset Ratio. However, past performance is no guarantee of future performance.

Second, ROC USA Capital sells senior secured participations in its first mortgage loans to ROCs, with loan servicing retained. These senior participants include insurance companies, banks, foundations, housing finance authorities and other CDFIs.

Participations are best structured with lenders who have an interest in repeat business for efficiency.

If you have an interest in learning more about balance sheet debt and participation lending, please contact Michael Sloss, Managing Director, ROC USA Capital at msloss@rocusa.org.  Thank you.