Funds
are available to make needed repairs to rental properties.
HUD mandated rent, occupancy, and affordability requirements
apply to units; meaning that HUD requires the owner
to rent the units for low-income housing.
Type
of repairs under the program include interior and exterior improvements
to bring the property to Section 8 Housing Standards, including
roof, water heater, plumbing, electrical, sewer, and outside
improvements.
General
Terms
This
is a zero interest, 30-year loan (first payment may be deferred
for one year and then amortized over the life of the loan).
Loan to Value Ratio cannot exceed 90%. Income to Debt
Ratio cannot exceed 105% and must conform to HUD guidelines
for affordability periods. Repayment of the loan is due at the time of sale or change in title.
Funds
may be used for hard or soft costs for rehabilitation, site
improvements, and security upgrades. All work must be
performed by a licensed contractor.
The
program is limited to properties within Target Areas and SAFE
neighborhoods. For
additional information, download the Rental
Rehabilitation Loan Program Fact Sheet (pdf). Haga clic aquí para español.
New HUD Income Limits for 2008