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Downtown Loan Fund (DHA & DCLF)

Downtown Loan Funds

The most vibrant downtowns across the country are those with recreational opportunities, unique attractions, learning centers, a mix of commercial activities, and a strong residential base.

In response to the 2001 recession and the Great Recession in 2008, the Louisville Downtown Development Corporation (DDC) established the Downtown Loan Funds through a public-private partnership with Louisville Metro Government and many of Louisville’s local and regional corporate leaders. The events of 2020 have helped to emphasize the importance of these funds as we look to help Downtown Louisville recover from the dual impacts of the COVID-19 pandemic and the protests.

The Downtown Housing Assistance Fund (DHA) was created in 2001 and was designed to assist urban developers in financing their Downtown housing projects, fostering the growth of residential development in Downtown Louisville and it adjacent neighborhoods. In 2008, encouraged by the success of the housing fund, many of DHA’s members helped established the Downtown Commercial Loan Fund (DLCF) with a complementary mission of fostering the growth of Downtown’s commercial sector.

The Downtown Housing Assistance Fund

Since its inception in 2001, DHA has had remarkable results. There have been no loan defaults and all borrowers have paid in full. Consequentially, the program has also been able to fund projects from repaid loans made earlier in the fund’s existence. The 664 units directly funded by the program, with a combined investment of over $230 million, have aided in the creation of a critical mass of new market rate housing Downtown.

The Downtown Commercial Loan Fund

Similar to the success of the housing fund, DCLF has leveraged its $4.3million dollars of gap financing into over $72 million dollars of commercial development in Downtown Louisville and its edge neighborhoods. With the majority of its loans originated in the past three years, DCLF has financed an eclectic range of projects which have brought new jobs to Downtown while fostering the preservation and adaptive reuse of existing Downtown properties.

Learn more by downloading the PDF.