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The HOME Program provides financing for the rehabilitation of rental housing which will be available to low income people at an affordable rent. The program boundary shows the eligible area for the HOME Program.
Qualifications for Approval
The rental property must be within the approved boundary and be able to be rehabilitated to appropriate standards. The owner must have acceptable credit and financial condition, agree to affirmatively market the property and agree to rent controls for the period of affordability. Generally, the debt proposed must not be more than the property is worth following rehabilitation.
Terms are negotiable and based upon estimated cash flow of the project. Part of the loan is paid back at 5% interest over 5-20 years, and part of the principle is deferred until a later date. The amount of the loan to be deferred or amortized is negotiated case by case. The City handles all loan closings, fund disbursements, and loan servicing.
Affordability Periods are based on amount of HOME funds borrowed per unit:
|Amount Borrowed/Unit||Affordability Period (years)|
|$15,000 to $40,000||10|