The purpose of the Rental Rehabilitation Loan Program is to assist owners of smaller rental properties in financing improvements to investment properties occupied by persons or families with an income less than 80% of the statewide median income. The loan has a 6% annual percentage rate, with a term of up to 15 years. The loan is non-assumable, and due on sale. Owners may receive up to $25,000 for a one or two unit property, or $10,000 per unit for larger properties, with a maximum amount of $100,000.
Owners wishing to participate in this program must have a good credit history and must be financially secure. The owner must also have equity in the property, and the building must have a positive cash flow. Individuals, partnerships, or corporations may apply for a loan. In the case of a partnership or corporation, the principals of the organization must also personally guarantee the debt. Work must be completed within nine months from the date of the loan and the property must meet HUD Housing Choice Voucher (formerly Section 8) Housing Quality Standards upon completion of the rehabilitation.