MIDWEST HOUSING DEVELOPMENT FUND INC

What MIDWEST HOUSING DEVELOPMENT FUND INC does

Midwest Housing Development Fund, Inc. (MHDF) is a nonprofit Community Development Financial Institution (CDFI) founded in 2000 and headquartered in Omaha, Nebraska, with a secondary office in Sioux City, Iowa. The organization was formed to meet nontraditional financing needs for the creation, development, and rehabilitation of affordable rental housing in Midwest communities, originally focused on predevelopment loans and now offering a full lifecycle suite of financing products: Pre-Development, Acquisition, Construction, Permanent, TIF/Tax Abatement, Gap, and Workforce Housing loans. Underlying architecture is a revolving loan fund model in which debt and equity capital from institutional investors, banks, foundations, and government sources (CDFI Fund, FHLB Topeka, Nebraska DED) is pooled and continuously redeployed as loans are repaid.

MHDF's revenue model consists of thin net interest margin on loan products (rates of 1-4% to MHDF from investors, 0-5% to borrowers, 5-15 year maturity) plus operating grants to cover overhead. Loan capital is sought in tickets of $25,000 to $1,000,000 and equity capital in amounts exceeding $5,000, with no financial return on equity. Distribution is direct-lending: MHDF works with affordable housing developers and sponsors throughout the pre-development and development process, providing technical assistance and remaining directly involved in downstream applications for construction, permanent, and equity financing. The primary customer segment is affordable housing developers in the Midwest; institutional investors and partners such as Wells Fargo CDC, First National Bank of Omaha, U.S. Bancorp CDC, the Peter Kiewit Foundation, and Midwest Housing Equity Group (MHEG) provide financing capacity.

Name

MIDWEST HOUSING DEVELOPMENT FUND INC

Legal name

Midwest Housing Development Fund, Inc.

Website

https://mhdfinc.com

Company type

Private

Founded year

2000

Operating status

Operating

Short description

Midwest Housing Development Fund Inc is a nonprofit Community Development Financial Institution (CDFI) that provides flexible, nontraditional financing and technical assistance to affordable housing developers across the Midwest via a revolving loan fund spanning predevelopment, acquisition, construction, permanent, gap, and workforce housing loans.

Ownership category

akta.pro rank

Product category

Affordable Housing Lending

NAICS

Funds, Trusts, and Other Financial Vehicles (525)

SIC

Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

National/Regional Development Finance Institutions (DFIs) (FSABAKAB)

Keywords

• Affordable housing financing
• Community development lending
• Revolving loan fund
• Workforce housing loans
• Predevelopment financing

Headquarters

HQ city

Omaha

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Others

Revenue model

1. Loan Interest Income: MHDF generates revenue through interest charged on loans provided to affordable housing developers. Interest rates on loans to borrowers are slightly higher than the cost of funds to the loan fund. Program earnings are described as low as fees and interest charged are minimal.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

MHDF is a nonprofit Community Development Financial Institution that provides non-traditional financing for the creation, development, and rehabilitation of affordable rental housing in the Midwest. Its core offering consists of a revolving loan pool from which it issues Pre-Development Financing, Acquisition Financing, Construction Loan Financing, Permanent Financing, TIF/Tax Abatement Loans, Gap Loans, and Workforce Housing Loans to affordable housing developers and sponsors, paired with technical assistance throughout the development process.

Product overview

Midwest Housing Development Fund, Inc. (MHDF) operates as a nonprofit Community Development Financial Institution (CDFI) offering a comprehensive suite of flexible financing products for affordable housing development. The organization provides a range of loan products across the development lifecycle, including Predevelopment Financing (early-stage loans before traditional financing access), Acquisition Financing, Construction Loan Financing, Permanent Financing, TIF/Tax Abatement Loans, Gap Loans, and Workforce Housing Loans. MHDF also serves as a technical assistance provider to sponsors of quality, sustainable affordable housing, helping borrowers navigate the application process for construction, permanent, and equity financing.

Differentiator

Problem solved

Functional benefit

Products and services

• Pre-Development Financing Loans provided to affordable housing developers and sponsors prior to their ability to access traditional construction and permanent financing, covering early-stage development costs.
• Acquisition Financing Loans to finance the acquisition of property for affordable housing development.
• Construction Loan Financing Financing for the construction phase of affordable housing development projects.
• Permanent Financing Long-term financing for completed affordable housing developments once construction is finished.
• TIF/Tax Abatement Loans Loans tied to Tax Increment Financing or tax abatement arrangements to support affordable housing development.
• Gap Loans Financing to fill gaps in project funding that cannot be met by conventional or government sources.
• Workforce Housing Loans Financing specifically targeted for workforce housing developments serving moderate-income households.
• Technical Assistance for Affordable Housing Developers Technical assistance and development process support to sponsors of quality, sustainable affordable housing, helping borrowers navigate applications for construction, permanent, and equity financing.

Quantifiable outcome

• One write off less than .01% of loans made since inception in 2000

Named customers2 records

Segments2 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered core.

• Midwest Housing Equity GroupcoreStrategic or Co-development PartnerMHDF works in partnership with Midwest Housing Equity Group (MHEG). MHEG logo appears on the main website indicating a strong operational partnership in the affordable housing ecosystem.
• Opportunity Finance NetworkcoreStrategic or Co-development PartnerNational network of community development financial institutions. MHDF is a member, providing access to industry best practices and peer support.

Scale indicators2 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Reinvestment Fund: CDFI that finances affordable housing, healthy food access, and community development using a revolving loan capital structure similar to MHDF's. Comparable in mission-aligned lending and use of program-related investments to leverage private capital.
• Local Initiatives Support Corporation (LISC): National nonprofit CDFI providing loans, equity, and technical assistance for affordable housing and community development. Closest large-scale analog to MHDF in product breadth, investor base, and CDFI funding model.
• Enterprise Community Partners: National nonprofit CDFI that finances and develops affordable and workforce housing across multiple states. Directly comparable to MHDF in mission, CDFI structure, and use of revolving loan and equity funds to bridge gaps left by conventional financing.
• Capital Impact Partners: National nonprofit CDFI focused on affordable housing, community development, and equitable economic outcomes. Closely comparable to MHDF in loan product design, mission-driven capitalization, and use of EQ2/PRI-style investor instruments.

Others

• Opportunity Finance Network (OFN): National membership and advocacy network for CDFIs, of which MHDF is a member. Comparable as the ecosystem/peer organization that aggregates CDFIs, channels capital, and shapes federal CDFI policy affecting entities like MHDF.

Regional players

• Coastal Enterprises Inc. (CEI): Regional CDFI serving rural and small-city communities in the Northeast with loans and equity for affordable housing and community facilities. Comparable as a regionally focused CDFI lender, though operating in a different geography than MHDF.
• Nebraska Investment Finance Authority (NIFA): State housing finance agency in Nebraska that issues tax-exempt bonds and allocates LIHTC to support affordable rental housing. Comparable in geographic focus on Nebraska and in providing multifamily affordable housing financing complementary to MHDF.
• Iowa Finance Authority: State housing finance agency issuing mortgage revenue bonds and administering LIHTC for affordable housing across Iowa. Comparable as a regional affordable housing capital provider overlapping with MHDF's Midwest footprint.

Broad incumbents

• Federal Home Loan Bank of Topeka: FHLB district bank serving Nebraska, Kansas, Iowa, and other Midwestern states with Affordable Housing Program (AHP) subsidies and member bank capital. Functions as both an MHDF investor and a broader incumbent source of affordable housing capital in the same geography.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about MIDWEST HOUSING DEVELOPMENT FUND INC