Blended Capital Loan Program
The Blended Capital Loan Program is a community-focused effort aimed at helping homeowners keep their homes and build wealth in their neighborhoods. Managed by the Central Area Collaborative, this program provides forgivable loans to eligible homeowners to make critical home repairs, improve safety, and build Accessory Dwelling Units (ADUs). This initiative supports homeowners—especially Black and other minoritized residents—who are at risk of displacement due to rising housing costs and limited resources.
Unlike traditional loans, this loan may be fully forgiven over a 10-year period. To qualify for forgiveness, borrowers must live on the property for at least ten years, complete their construction project, and agree to rent the new units at rates that are affordable for people earning less than the area median income. These terms ensure that the benefits of the loan ripple outward, supporting both the homeowner and the broader community.
The process is designed to be accessible and accountable. Homeowners work with our team to define a clear Scope of Work and Budget, and funds are disbursed as construction milestones are met. Homeowners must demonstrate progress and complete the project within agreed-upon timelines. Once the unit is built, they must submit documentation and photographs to show that the work has been completed. Central Area Collaborative staff may visit the property to monitor progress and ensure compliance.
To protect the program’s integrity and the homeowner’s investment, a Deed of Trust is placed on the property for ten years. This is not a lien to recover funds, but a legal notice ensuring that the forgiveness terms are met. At the end of the ten-year term—if all conditions have been met—the loan is considered repaid in full and the Deed of Trust is removed.
This program is about preserving community, not just building structures. By helping families remain in their homes and equipping them to build wealth, we are investing in the long-term health and stability of our neighborhoods.
How It Works (Loan Terms Summary)
Must be owner-occupied residential property
Funds must align with the approved Scope of Work & Budget
10-year Deed of Trust ensures compliance
Forgiveness requires:
Proof of completed project
Owner occupancy for 10 years
Renting unit at HUD-defined affordable rates (ADU)
Eligibility Requirements
Must own and reside at the property
Be in King County
For ADUs, be willing to rent to tenants at affordable rates (based on HUD AMI)
Meet income (140% AMI) and documentation requirements
If you are interested in applying to this program, please contact us.
