The program will subsidize the owner's portion of of rehab via a 10-year, 0% interest, deferred forgivable loan. 10% of the loan amount will be forgiven each year that the owner occupies the dwelling and meets rental affordability requirements. A maximum subsidy of $60,000 is available per property.
The balance of the loan must be paid in full if the owner no longer occupies the property or sells/transfers ownership of the property before the end of the 10-year financing term. (As an exception, the owner may sell or transfer ownership to a new low-moderate income owner or heir who will occupy a unit and who meets the program’s income, affordability, and underwriting guidelines. In this case, the new owner will assume the outstanding City mortgage.)
Eligible Rehab Activities
For residential spaces, only necessary, permanent improvements not of a cosmetic or luxury nature are eligible for funding, including: