7.2 HRSR 04-07-2014 - Laserfiche WebLink

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Rental Rehabilitation Deferred Loan (RRDL) Program The Rental Rehabilitation Deferred Loan Program assists owners of smaller rental properties located outside the seven-county metropolitan area,to finance moderate rehabilitation of structurally sound residential rental units. The borrower may be: • An individual,private developer,non-profit,unit of government, or tribal housing corporation Borrower eligibility: • Minimum Credit Score: 640 (individual owners) • Minimum Equity Requirements: 5%of eligible soft costs • Compatible with existing commercial debt(Limited Partnership and Corporations) • Minimum credit worthiness and financial requirements(Limited Partnership and Corporations) • Property taxes current • Property insurance current Property eligibility: • The property is residential rental property of six or more units within a building or buildings in one area • The property space is at least 51%utilized for rental housing • The property is occupied by households with incomes less than 80%of the statewide median income(current household income limit$58,000) • The rent limit is the lesser 30%of local wages(2012 average)from the MN Department of Employment and Economic Development(DEED)data and 80%of the greater of statewide or area median income(AMI). Eligible improvements: • Eligible improvements must be permanent general improvements,that have not been started prior to the loan closing • Renovations or repairs such as: roof,window,and Furnace/boiler repair or replacement, and energy and water saving improvements. • Improvements must be made in compliance with all applicable health,fire prevention, building,housing codes and standards, and Minnesota Housing's Abbreviated Design Standards and Sustainability Requirements for limited scope rehabilitation projects.