Occasionally, a district may have reason to purchase property for a future church site without the church having the immediate capacity to make fully-amortized monthly loan payments. While we don’t wish to participate in land speculation when the appreciation of land value is a necessary condition for the repayment of a loan, DLPs may be considered, subject to the following criteria:
The property under consideration must be unimproved; however, improved property may be considered as long as the improvements add no significant value to the property.
The church body for which the property is intended must be an extension church. If this is unclear, our board of directors will determine whether or not the church in question should be considered an extension church.
The church body for which the property is intended must already be in existence and worshipping together.
The district must demonstrate that the property is in a prime target area for the church.
Similar property should not be readily available in the near future, due either to escalating prices or to lack of other vacant lots; or the property should be demonstrated to be significantly underpriced.
The district has 25 percent equity in the property. If the district is not able to make a cash down payment of at least 25 percent, other debt-free district property may be used as collateral.
The district agrees to accept full responsibility for monthly loan payments.
All loans directly to the district, or for which the district has guaranteed payments, must be current.
Loans are underwritten and funded by The Alliance Development Fund, Inc. (ADF), which conducts its operations, together with the operations of The Orchard Foundation, under the brand name Orchard Alliance; however, only ADF is responsible and liable for the lending operations of Orchard Alliance.