Rental Rehabilitation Loan Program
PROGRAM OBJECTIVE
The Rental Rehabilitation Loan Program provides owners of rental property located in the City of Appleton with financial and related technical assistance for the rehabilitation of their units rented to low-income tenants. The loan proceeds must be used to bring the rental unit up to a decent, safe, and sanitary condition; and to increase energy conservation. Lead-based paint hazards must also be addressed as part of the rehabilitation work.
PROGRAM BENEFITS
The Rental Rehabilitation Loan Program offers the opportunity to protect the investment you have in your rental property by providing a loan to improve the property.
LOAN QUALIFICATIONS
In order to qualify for a loan, you must meet the following requirements:
- Be the owner of the property for which assistance is being requested.
- Property must be located in the City of Appleton.
- Property must have at least 50% of the rentable floor space dedicated to residential use.
- Property must be occupied by or available to low income tenants for the first five years of the loan.
- The building must be able to be physically and financially rehabilitated.
- All rents must be at or below the fair market rents established by the U.S. Department of Housing and Urban Development (HUD) for the first five years of the loan.
TERMS OF THE LOAN
Up to 100% of the actual cost of the rehabilitation work can be covered by a rental rehabilitation loan; there are no payments on the loan, the loan is due in full when the property is sold or transferred. The interest rate is 0%. Loan amounts are based on the lower of the following:
- $15,000 per qualifying unit, or
- The actual cost of the rehabilitation work, or
- An amount, which when added to the amount owed on the property, does not exceed 100% of the current property value.
ELIGIBLE PROPERTY IMPROVEMENTS
The loan proceeds must be used to bring the rental unit up to a decent, safe and sanitary condition; and to increase energy conservation. Priority will be given to the following work:
- lead-based paint hazards
- roofing
- foundation
- heating
- electrical
- plumbing
- energy conservation
- exterior surfaces
- interior walls and ceilings
- All items not meeting code or HUD's Housing Quality Standards, as identified during the property inspection, and
- All lead paint hazards, must be rehabilitated as part of the loan. Funds cannot be used for new construction or the acquisition of land.
GROSS INCOME LIMITS FOR TENANTS (as of
Mar. 2008)
| Family
Size |
Gross
Income |
| 1 |
$28,800 |
| 2 |
$33,000 |
| 3 |
$37,100 |
| 4 |
$41,200 |
| 5 |
$44,500 |
| 6 |
$47,800 |
| 7 |
$51,100 |
| 8 |
$54,400 |
GROSS RENT LIMITS PER MONTH (Includes cost of utilities paid by tenant)
|
Number of
Bedrooms |
Maximum
Rent (Including
Utilities) |
| Efficiency |
$509 |
| 1 |
$523 |
| 2 |
$649 |
| 3 |
$936 |
| 4 |
$962 |
To receive an application for the Rental Rehabilitation Loan
Program, contact the Community Development Department.
To print a brochure containing all the information outlined
above, click here.
For more information on this program, contact Laura Roy, Housing Coordinator at (920) 832-6007.
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