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The original item was published from 9/18/2017 11:31:47 AM to 10/7/2017 12:00:01 AM.

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Posted on: September 18, 2017

[ARCHIVED] City begins second round of rental rehab program

DEC 16

The city is rolling out a second round of its program to support development and rehabilitation of quality rental housing, to improve housing options and increase neighborhood vibrancy in our community.

The program is made possible through our Community Development Division, using Community Development Block Grant funds from the U.S. Department of Housing and Urban Development.

A total of $175,000 will be available for the 2017-2018 program year (through June 30, 2018).

Criteria for prioritizing projects are:

  • Rental projects will generally be limited to properties located in the downtown area and other traditional business corridors for which rental housing is the highest and best use.  A wide variety of building types will be eligible, but may include small, mixed-use buildings; duplexes; coach houses or other auxiliary structures; and more.  The City generally will not fund the development or rehabilitation/construction of single-family homes as rental properties.
  • The city will prioritize projects in which the owner is an occupant, such as the rental unit of an owner-occupied duplex or a mixed-use building with commercial space housing the owner’s business.
  • The city will prioritize buildings which improve vacant or underutilized space, like the conversion of an unused second floor into an apartment.

The first round of the program was a demonstration, to identify challenges and create a clear path for redeveloping rental units in smaller-scale, mixed-use properties.  It resulted in one rehabilitation project, currently under construction in the Old Lakeview Business District, and a handful of other projects undergoing evaluation and feasibility assessments. 

“We learned a lot about how to provide support to smaller developers and how to navigate some of the challenges property owners face when trying to rehab some of these mixed-use spaces,” said Community Development Manager Chris Lussier. “I think a number of property owners with some great project ideas got a better handle on the steps they need to take as well.”

Eligible applicants are building owners of suitable structures, including prospective buyers with site control. Owners may be individuals, corporations, or partnerships. Also eligible to apply are qualified Community-Based Development Organizations, which may propose new construction.

A minimum of 51 percent of the rental housing units developed or rehabilitated must initially be occupied by households with less than 80 percent of the area median income, based on family size, as determined by HUD ($44,400 for a family of four).

The city will accept pre-applications until 4 p.m. on Thursday, October 5, 2017 in Room 117 at City Hall, 10 N. Division St. More comprehensive applications will be required for chosen projects. For more information, please visit our website,, or contact Lussier at 269-966-3267.

City Rental Rehab Program information
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