Rental Rehabilitation Loan Programs
The purpose of the City's Rental Rehabilitation Loan Program is to concentrate funding in the downtown to rehabilitate small 1-4 unit rental properties, improve the overall image of the downtown, and create affordable and sustainable housing.
Allowable improvements are defines as basic and necessary items that improve the basic livability, safety, or utility of the property. These improvements must meet International Property Maintenance Code (IPMC) ; Housing Quality Standards (HQS); and any other applicable codes as determined by the inspection and rehabilitation scope of work. Examples may include: repair or replacement of inadequate roofs, heating, electrical, or plumbing systems; energy and weatherization; removal of asbestos, lead based paint hazards, or other hazardous conditions as required by a risk assessment and inspection; and accessibility improvements.
Property & Applicant Eligibility
To be eligible, the property must be a small rental property and be located in the target area; may be owner occupied or an investor owned property; and must in “good standing” with Code Enforcement.
The applicant must have proof of ownership of the building; must be current on all City assessments; if owner occupied, must be at or below 80% of Median Family Income (MFI); and may not be elected or appointed City Official. At least 51% of the rental units in the property must be occupied by low-moderate income residents. (See Appendix 3: Median Family Income Guidelines). As part of the application, the owner must provide Tenant Income Verification Forms filled out and signed by the tenant. (See Appendix 4: Tenant Income Verification Form).
Interest Rates, Terms and Financial Information
Terms and rates are tiered based upon income & ownership:
1.) Owner Occupied: Low-income household at or below 50% Median Family Income (MFI) are eligible for a deferred loan at 0% for ten years. Must be principal residence. Loan may be forgiven in 10% increments per year over the ten year period. If sold before the 10 year time frame expires, any remaining balance not forgiven must be repaid.
2.) Owner Occupied: Low income household @ 51-80% MFI - loan must be repaid at 1% interest over up to 20 years. If the owner moves to a principal residence other than the primary property securing the city loan, the loan rate will convert to the applicable Investor Owned rate.
3.) Investor Owned: Principal residence inside Lewiston or Auburn, 2% up to 20 years or Principal residence outside Lewiston-Auburn, 3% up to 20 years
Owner Match: A 10% match per unit is required in the form of cash (no in-kind) from all applicants except low-income households at or below 50% MFI. Applicant may secure this match from a lender, owner equity, or insurance, etc. Match must be cash or liquid and available when the project is approved for funding.