Frequently Asked Questions
1. How can I get an application for Cornerstone funding?
To download the application, click here. You may also
Contact Us to have the Application sent to you by email
or by regular mail.
2. What kinds of projects does Cornerstone fund?
Cornerstone funds supportive housing- primarily apartment
buildings and single room occupancy (SRO) units- where a portion
of the units are dedicated over the long term for people with mental
illness. People living in the units decide whether and to what extent
they receive metal health and other services. Cornerstone's borrowers
are usually nonprofit developers. Cornerstone also helps people with
mental illness purchase their own homes.
3. What can Cornerstone funds be used for?
Cornerstone funds are capital funds. They can be used for the
predevelopment, acquisition and renovation of properties. Cornerstone
does not fund operations, rent, or services.
4. How much funding can I expect to get from Cornerstone?
Cornerstone is a gap lender and typically provides between 10% and 35%
of project funding, depending on the needs of the project. Cornerstone
will not be the primary lender on a project, and Cornerstone collaborates
with other funders, both public and private. In some instances,
Cornerstone can be the "first in" lender to help projects move forward.
If prudent, Cornerstone will subordinate its financial interests to
other lenders.
5. Does Cornerstone provide grants?
Cornerstone provides grants IN COMBINATION with loans. Cornerstone
does not provide "grants only."
6. What are the terms of Cornerstone loans?
Cornerstone provides a variety of below-market loans with varying terms
and interest rates. Loan terms range from two to ten years, at interest
rates ranging from 1% to 6%, depending on Cornerstone's source of funds.
7. What is the application process?
After identifying a property, an applicant meets with Cornerstone staff
and submits an application, including detailed information on project
finances, proposed operations, the organization's experience and the
scope of proposed renovations. Cornerstone staff conducts a site visit
to determine appropriateness of the property. When the application is
complete, the applicant presents the project to Cornerstone's Loan
Committee, which makes a recommendation to the Executive Committee
for approval. Applications are accepted on a rolling basis.
8. How long does the process take?
The process typically takes three to four months to complete, depending
on the completeness of the application and the resolution of any issues.
Borrowers are required to execute legal documents (Deed of Trust,
Promissory Note, Loan Agreement) prior to the disbursement of funds.
Depending on project needs, the timeline can be modified.
9. What is the Cornerstone Air Conditioning Program?
Each summer between Mid-May and August 1, Cornerstone provides window
air conditioners on a one-time basis free of charge to people
with mental health issues in DC. Individuals are limited to one air
conditioner. To download a request form, click here.
