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Rehabilitation
Multi Family Housing
HOME Rental Rehabilitation Program
The HOME Rental Rehabilitation Program provides funding for the
rehabilitation of existing rental properties. Properties must have at
least 51% residential and meet rehabilitation standards after the work
is completed. There is a five year compliance period for rent and
income. Assistance is structured in the following manner:
- HOME developments needing $100,000 or more will receive a 0%
deferred payment loan that will be coterminous with the existing
first mortgage. Borrowers can obtain 100% financing as long as HOME
expenditures do not exceed $14,000 per unit.
- HOME developments under $100,000 will receive a 0% deferred loan
that is forgiven after a five year compliance period. Borrowers need
to provide a 25% match towards the rehabilitation.
The HOME Rental Rehabilitation Program is administered by Semcac. As
the community works towards the development of a landlords association
and/or rental registration and inspection program, this group should
market these resources to property owners in the community to assist
with rehabilitation efforts.
Rental Rehabilitation Loan Program
The Rental Rehabilitation Loan Program works to assist owners of smaller
rental properties to finance improvements. At the time the improvements
are completed and units are rented, 75% of the units must be occupied by
persons or families with an income less than 80% of the statewide median
income. The loan is a 6% annual percentage rate, with a term of up to 15
years. Assistance is available for 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. Semcac also administers the Rental Rehabilitation
Loan Program.
Small Cities Development Program (SCDP)
In addition to owner occupied housing, rental housing is also an
eligible activity through the Small Cities Development Program. The need
for rehabilitation of older housing units both among owner and rental
units has been clearly identified. If the City looks to meet the owner
occupied housing needs through the SCDP, they should also analyze the
interest by rental property owners to participate as well.
Freeborn Bank Building
The City of Albert Lea is offering two connected buildings for historic
rehabilitation in the Central Business District. The buildings which are
located at 201 South Broadway and 211 South Broadway were constructed in
the early 1920’s and are four stories tall. The buildings share a common
stairwell and elevator. The structure is in need of rehabilitation and
would make a good candidate to assist in meeting the market rate housing
demand while assisting in downtown revitalization efforts. |