Residential Rehab Loans
This program is designed to (1) provide low interest financial assistance for necessary improvements to residential property owned or occupied by low/moderate income persons, (2) eliminate code violations in existing housing resulting in safe and sanitary living conditions,
(3) implement and encourage energy efficient improvements, (4) ELIMINATE LEAD BASED PAINT HAZARDS, and (5) prevent the decline and deterioration of older neighborhoods. Such decline results in an erosion of the tax base, a loss of investment equity by owners, and requires more extensive and expensive future remedial action on the part of the homeowner. The preservation of housing stock is one of the primary objectives of citizens, City Council, and staff professionals who believe that the quality of housing is a primary source of neighborhood stability.
The following is a summary of the available terms:
ELIGIBLE LOW-INCOME OWNER OCCUPIED 1-4 FAMILY DWELLINGS
- Interest rate – 3%
- Term – up to 20 years
- Approximate monthly payment as low as $5.55 per $1,000 borrowed
ELIGIBLE VERY-LOW-INCOME OWNER OCCUPIED 1-2 FAMILY DWELLINGS
- Interest rate – 3%
- Term – until sale or transfer of property
- Monthly payment – deferred until sale or transfer
INVESTOR OWNED PROPERTY WITH INCOME ELIGIBLE TENANTS
- Interest rate – Prime
- Term – 10 – 15 years
- Approximate monthly payment as low as $9.56 to $11.11 per $1,000 borrowed
IMPORTANT COSTS CONSIDERATIONS
A rehabilitation loan may be made only with respect to a property which needs to be brought up to minimum requirements of the 2009 International Residential Building Code, and/or the “Housing Quality Standards” established by the U.S. Department of Housing and Urban Development (HUD). Once a property is determined to meet this requirement, other potential costs are:
1.Cost effective energy conservation measures such as insulation, weatherstripping, new or modified heating equipment, doors, windows, etc.
2. General property improvements not of a luxury nature, roofing, foundation repair,plumbing, electrical repairs, kitchen and bathroom repairs,replacement of non-working stoves or refrigerators, flooring, siding, painting, etc.
3. Modifications to make a living unit accessible to a handicapped or elderly occupant.