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