Financial Tools

MDIF is a $75 million revolving loan facility assembled by ULC and used at ULC’s discretion. MDIF loans are low-interest and interest-only, and their terms are pre-negotiated. Because of its simplified loan-approval process, MDIF allows ULC to move quickly and compete with market-rate buyers in its efforts to acquire real estate for community benefit.

MDIF is supported through a collective of lenders, led by FirstBank, which committed $37.5 million in a 10-year revolving credit agreement. Other MDIF partners include the Colorado Division of Housing, Colorado Housing and Finance Authority, Colorado Health Foundation, Gates Family Foundation, Colorado Trust and Gary Community Ventures.

FirstBank provides the primary loan for ULC’s acquisitions and handles the loan approval process for all MDIF lenders. ULC, as the organization managing the fund, is responsible for the development plan, long-term financing, and eventual use or sale of the properties it buys. In most cases, ULC retains ownership of the land through a 99-year lease. MDIF offers below-market interest rates by combining discounted bank loans with very low-cost funding from nonprofits, public agencies, and philanthropic organizations. As of 2023, MDIF had helped finance 40% of ULC’s properties, totaling $81 million.