HNEF Project Eligibility

To be considered for an HNEF investment, projects must meet the following threshold criteria:

  • Demonstrated neighborhood and community support
  • Location: Within ½ mile of transit, or in a mixed-use neighborhood with significant potential for increased walkability
  • Scale: Minimum $5MM Total Development Cost (TDC)
  • Uses: Market-rate and moderate-income housing (rental or ownership); commercial office, retail, and industrial space; mixed-use development

HNEF Financing Terms

  • Investments will be made at construction and/or permanent closing and are expected to have a term of up to 10 years.
  • HNEF will take an ownership position in the project partnership as a limited partner or investor member.
  • HNEF investments will typically provide 5 to 25 percent of TDC.
  • Projects are expected to deliver a target IRR of 10% over the life of the investment, including annual cash distributions and back-end proceeds.
  • Project sponsors must have a defined plan to take out HNEF equity at the end of the investment period. 

HNEF Project Screening

All potential HNEF projects are screened for investment based on a HealthScore rating system that considers the extent to which projects will:

  1. Create dense, mixed-use, walkable neighborhoods that promote active living, increase transit use, and reduce Vehicle Miles Traveled (VMTs).
  2. Provide new economic opportunities, especially for low- and moderate-income residents.
  3. Contribute to quality housing for all income levels.
  4. Increase access to fresh and healthy food.
  5. Create a healthy and safe environment.

See the HealthScore rating system in action.


HealthScore Rating System

All potential HNEF projects receive a HealthScore rating of 0-100, based on a weighted average of the following criteria:

Neighborhood screening criteria measure the need and opportunity for healthy development
(25% of total HealthScore)

  • Community support and growth potential
  • Access to multi-modal transportation
  • Opportunity to advance regional equity
  • Opportunity to reduce health disparities

Project screening criteria measure how well the project meets the need and captures the opportunity
(75% of total HealthScore)

  • Neighborhood walkability
  • Transformative Impact
  • Housing choice and affordability
  • Community safety
  • Economic opportunity
  • Green space and recreational access
  • Transit-supportive development
  • Healthy food access
  • Indoor air quality
  • Building and site performance

Minimum HealthScore to be considered for investment: 50

Projects meeting the minimum receive a tier classification:

  • Moderate Impact: 50-65 
  • High Impact: 65-75
  • Very High Impact: 75+