St. Louis Park Multifamily Rental Rehabilitation Deferred Loan
The City of St. Louis Park currently offers rehabilitation assistance to multi-family residential properties with 2 or more units.
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About the Loan
- 0% (0.224% APR)*
- No monthly payments.
- 20 year term.
- Loan amounts minimum of $5,000 per qualified restricted unit and up to $100,000 maximum per property.
- Loan must be matched 1:1 with borrower funds.
*APR based on $50,000 for 20 years
- Licensed rental properties with 2 or more units.
- Property must be at least 30 years old.
- Properties must not have any rental license revocations and must be properly insured.
- Loan approval is subject to credit and program guidelines.
- 0% (0.224% APR)*
- This loan is secured by a mortgage on the property.
- 1:1 project cost match.
- Closing costs apply.
- No income limits.
- Owners who meet the Rent Restrictions and Requirements for 5 years or longer will have a portion of the loan forgiven, as follows: 25% of loan forgiven at 5 years, 50% of loan forgiven at 10 years, 75% of loan forgiven at 15 years, 100% of loan forgiven at 20 years if the owner has met the Rent Restrictions and Requirements . The loan is 100% due and payable if the owner does not meet the Rent Restrictions and Requirements for at least 5 years.
*APR is based on $50,000 for 20 years.
- Eligible improvements include most interior or exterior improvements made to common areas and outstanding code violations. Improvements must not displace current residents during project.
- 1 bid is required from a properly licensed contractor.
- For do-it-yourself projects, a materials list including prices is required. The cost for labor and the purchase of tools may not be included in the loan.
- The borrower must restrict rents for 20 years from the date of closing or if the property has been sold, refinanced or the ownership of the property has been transferred.
- Borrowers must file an annual self-certification to the City that rents charged do not exceed 60% AMI affordability levels.
- Borrowers must agree to give equal consideration to renters with housing subsidy vouchers.
- At least 18% of units with affordable rents to households with incomes at or below 60% AMI.
- Annual rent increase for the assisted units may not exceed 5% of the previous rent charged, not to exceed 60% AMI affordable rent levels.
The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).