How is the Vacant Property Initiative loan forgiven?
A portion of the VPI loan will be forgiven as long as the project is completed and jobs are created. The borrower repays the non-forgivable portion of the loan in one year or at the project completion date (whichever is sooner) and at that time, the entire forgivable portion of the loan will be forgiven. At the time the first lien or letter of credit is released, however, if the borrower does not honer the agreement within 5 years, the forgivable portion will be reinstated and be due immediately. A second lien remains on the property through that time.
