Friday, September 05, 2008
The City of Temecula has established a loan program to assist owners of rental property with rehabilitation and correction of deferred maintenance at their property. The Multi-Family Rehabilitation Loan Program is also designed to improve the supply of affordable rental housing in our community. The property must be within the Temecula city limits to be eligible.
Loan Terms
|
Maximum loan amount |
$3,000 per unit |
|
Loan Term |
20 years |
|
Repayment Terms |
No payment for first 5 years, fully amortized for remaining 15 years |
|
Interest |
Simple interest, Prime Rate at the time of closing |
|
Loan Due |
When property is sold or refinanced | Eligible Improvements:
- Painting
- Landscaping
- Building and Housing Code corrections
- Municipal Code corrections
- Security improvements
- Playgrounds
- Health and Safety corrections
As a condition of the loan, Affordability Covenants will be recorded which have a 30- year duration. Based on the loan amount, a number of units will be required to be reserved for tenants of very low- and low-income. In addition, rents charged for the set-aside units cannot exceed established limits, which are adjusted annually.
A second condition of the loan is a Property Maintenance Agreement the owner must sign ensuring the proper maintenance of the property and its improvements. The site will be inspected at least annually to assess property upkeep.
If you have questions or would like more information, please contact the Redevelopment Agency at 951-694-6412.
|