Rental Rehab Program

About the Program

The Rental Rehab Program utilizes Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) to support the development of quality, affordable rental housing. Funding is available in the form of a no interest forgivable mortgage. The developer must provide matching funds of at least 25% of the total rehab cost.

Priority is given to rehab projects that will enhance the vibrancy of mixed‐use neighborhoods by providing housing that is walkable to shopping, parks, jobs, schools, and other community amenities.

A wide variety of building types are eligible, such as mixed‐use, duplex, auxiliary structure, etc. Single‐family rehab or conversion of single‐family to multi‐unit is generally not eligible for this program.

Criteria for Prioritizing Funding

Unit development in the downtown/central business district or along major corridors for which rental housing is the highest and best use.
Conversion of vacant or underutilized space within buildings, such as second floor storage or vacant office space.

Availability of Funds

Up to $60,000 per new unit or $25,000 per existing unit is available for the current program year. Additional funding may be available for building improvements required by the State of MI Building Code, such as fire suppression and elevator installation.

Eligible Applicants

Building owners of suitable structures, including prospective buyers with site control are eligible to apply. Owners may be individuals, corporations, nonprofit corporations, or partnerships.

Application Process

The application process has two phases:

Pre-application
Application/Underwriting

Pre-application forms are distributed by the City’s Community Development Division and are reviewed on a first‐come‐first‐considered basis. Staff will evaluate the pre‐application for eligibility and fit with program priorities, which may include a scheduled visit to the property. If the proposal meets eligibility and priority criteria, the City will invite the applicant to complete a more comprehensive application, which involves an extensive underwriting process and environmental review.

For further details, review the Rental Rehab Program Guidelines and contact the Community Development Division.

Contact

Scott Parker, Housing Rehab Coordinator
(269)966-3323
smparker@battlecreekmi.gov