Rental Rehabilitation

Occupancy Requirements for Property to be Rehabilitated:

A minimum of 51% of the rental units must be occupied by tenants at or below 115% of AMI for Swift County as determined by U.S. Departmnet of Housing and Urban Development. Income of tenants must be verified and must remain throughout the term of the loan. Owner is responsible for certifying by April 30th each year that at least 51% of the rental units are occupied by tenants at or below 115% of AMI.

Program Rent Limits:

All rental units must be within the fair market rent established for Swift County by the HRA by U.S Department of Housing and Urban Development. Rents must say within these limits for the repayment term of the program. Rent limits are adjusted annually by HUD and incremental annual rent increases are allowed with HRA approval as long as they do not exceed program rent limits.

Funding:

The maximum LHTF deferred loan amount extended to any owner will be based on the following but shall not exceed those available in the LHTF or 80% of the project custom, whichever is less.

Single Family Rental Rehab: $25,000
Multi-family Rental Rehab:

$12,500 per unit if at least 51% of the units are leased to tenants with incomes between 80%-115% AMI
$15,000 per unit if at least 51% of the units are leased to tenants with incomes between 50%-80% AMI
$20,000 per unit is at least 51% of the units are leased to tenants with incomes at or below 50%

Fair Market Rent:

Household Size	HUD FMR
0 Bedroom	$613
1 Bedroom	$689
2 Bedroom	$905
3 Bedroom	$1,118
4 Bedroom	$1,205

Loan Terms

If the total cost of repairs exceeds the maximum loan limits, the applicant will be responsible to secure additional financing beyond the required matching leverage amount. If the applicant is unable to secure the necessary funding, then the scope of the project will be reduced in a manner that is consistent with funding regulations and adopted housing standards. This is a 20-year loan term with 0% simple interest and a deferred lump sum repayment of principal. This means that the borrower will not need to make monthly payments on this loan. If affordability is maintained throughout the 20-year term, the lump sum repayment will be reduced to 50% of the original principal amount. However, this loan will become immediately due and payable, in full, if affordability is not maintained or, if, at any time during the 20-year term, the property is sold or otherwise transferred for an reason, or the primary mortgage is refinanced and the equity taken out. Grant funding is subject to board approval.

LHTF Income Limits

HH Size	50%	80%	100%	110%
1	$28,250	$45,190	$56,490	$64,960
2	$32,280	$51,650	$64,560	$74,240
3	$36,320	$58,100	$72,630	$83,530
4	$40,350	$64,560	$80,700	$92,810
5	$43,580	$69,730	$87,160	$100,230
6	$46,810	$74,890	$93,610	$107,650
7	$50,030	$80,050	$100,070	$115,080
8	$53,260	$85,220	$160,520	$122,500