Investor Rehabilitation

GUIDELINES
ELIGIBLE PROPERTIES One or more buildings on a single site or multiple sites under common ownership located in Fall River.
ELIGIBLE BORROWERS Investors with property located in Fall River.
ELIGIBLE ACTIVITIES Acquisition of multi-family properties for income-qualified tenants.
Rehabilitation of investor-owned property.
All housing code violations need to be corrected. Asbestos removal, radon, interior and exterior work, heating system, electrical updating, and energy-related activities are all eligible under the program.
Lead paint abatement is necessary under the program, and is eligible.
Handicap accessibility renovations are eligible.
INELIGIBLE ACTIVITIES Properties previously assisted with HOME funds may not be assisted again during the affordability period unless it is within one year after project completion. Assistance is limited to residential units; commercial property is not eligible under the HOME Program.
No out-buildings (i.e. detached garage); no luxury improvements (“luxury” is as judged by CDA).
INTEREST RATES
The Investor Rehabilitation Program features an interest rate of 1%. The length of the affordability period is determined as follows:Rehabilitation or acquisition of existing housing:
Affordability Period
5 Years
10 Years
15 Years
20 Years		 Affordability Period
Less Than $15,000
$15,001-$40,000
$40,001 or More
LOAN LIMITS & TERMS
  • Loans may be written for terms up to 30 years.
  • Private leveraging is required.
  • All HOME rehabilitation loans are deferred for 1 year.
  • Lead paint abatement of $7,500.00 per unit and handicap accessibility renovation loans up to $15,000.00 are deferred until forgiveness (granted) as long as the borrower complies with program restrictions during the affordability period. Total amount of deferred assistance may not exceed $30,000.
  • Rent and income restrictions as established by HUD will apply to all HOME-assisted units.
  • HOME funds may be used to assist mixed-income projects, but only HOME-eligible tenants may occupy the HOME-assisted units.