Market Rate Conversion Program

The Network for Affordable Housing (NOAH), a community development financial institution (CDFI) offers a Market Rate Conversion Loan through the Oregon Housing Acquisition Fund (OHAF). OHAF is capitalized through a blend of funding sources. Private bank capital is combined with lower-cost philanthropic grants and public dollars from state and local government partners, including the Oregon Legislature and the Portland Housing Bureau, allowing NOAH to offer below-market loan terms to borrowers.

The Market Rate Conversion Loan program provides short-term bridge financing to help qualified borrowers acquire market rate multifamily properties and convert them into affordable housing. Both for-profit and nonprofit entities are eligible.

Loans range from $300,000 to $5,000,000, with terms up to 48 months and interest-only monthly payments. Interest rates fall between 5–7%, and there is no prepayment penalty. Loan-to-value maximums are 80% for nonprofits and public entities, and 75% for for-profit borrowers.

To qualify, properties must have at least 5 units, and borrowers must commit to renting a meaningful portion of units to households earning below 80%, 60%, or 50% of area median income (AMI), depending on the affordability tier chosen. Borrowers are required to present a credible plan for completing the conversion to long-term affordable housing within the loan term.