RENTAL PROPERTY IMPROVEMENT LOAN

The Rental Rehabilitation Improvement Program offers property improvement assistance to responsible investors who agree to rent to income-eligible tenants. 

Loan Terms

  • The property must be located in a City of Savannah neighborhood and meet program standards when the improvements are complete.

  • Generally, units must have at least 2 bedrooms to qualify.

  • The property's debt compared to its value and its cash flow will be considered as part of our loan underwriting.

  • Provided they meet other program requirements, landlords are eligible for a loan up to 5 years.

  • Loan approvals are based on standard commercial lending guidelines and those required by the CHSA funding source. 

 

Providing funds are available, CHSA's standard rental property improvement loan programs have the following terms and match requirements:

  1. HUD Designated Low-and Moderate-Income Neighborhoods​

  • CHSA loan will be a 1st or 2nd lien only 

  • Up to $20,000 per dwelling unit​​

  • $500 Loan Servicing Fee 

  • Up to 6% interest

  • Term-up to 5 years

  • Estimated payments $386.66 ($20,000 at 6% for 60 months)

  • Owner will pay for loan servicing fee and all closing costs from private funds 

  • Minimum $1 CHSA to $1 Landlord Match Requirement

 

For example, the owner of a unit would be eligible for up to $40,000 through the Rental Property Improvement program as long as the landlord invests at least $40,000 of his or her own funds (bank loan, cash, etc). The landlord is required to spend his/her money first.

         2.  Other Neighborhoods

  • CHSA loan will be a 1st or 2nd lien only 

  • Up to $10,000 per dwelling unit

  • $500 Loan Servicing Fee

  • Up to 6% interest

  • Term-up to 5 years

  • Estimated payments $193.33 ($10,000 at 6% for 60 months)

  • Owner will pay loan servicing fee and all closing costs from private funds

  • Minimum $1 CHSA to $2 Landlord Match Requirement

For example, the owner of a duplex would be eligible for up to $20,000 through the Rental Property Improvement program as long as the landlord invests at least $20,000 of his or her own funds (bank loan, cash, etc). The landlord is required to spend his/her money first.

Program priorities

  • Roof replacement

  • HVAC repair or replacement (heating, ventilation, and air conditioning)

The property must meet building code requirements upon completion of the repairs.  

 

Rent Controls  (01/01/2020)

Monthly rents are capped at: 

   $887 for a 1-bedroom apartment

$1,010 for a 2-bedroom apartment

$1,385 for a 3-bedroom apartment 

$1,589 for a 4-bedroom apartment  

 

Tenant Income Guidelines (07/01/2020)

Landlords must provide tenants' income if unit(s) is occupied at the time of application.

Tenant income cannot exceed:

Family Size                Income Limit

       1                               $40,350

       2                               $46,100

       3                               $51,850

       4                               $57,600

       5                               $62,250

       6                               $66,580

       7                               $71,450

       8                               $76,050  

Technical Assistance

The standards for the Rental Property Improvement Program are high. Experienced construction specialists perform a thorough inspection of the property, identifying problem areas.  The owner must submit a scope of work and cost estimates at application.  The construction specialist works with the owner to review the scope of work (a list of the work that needs to be done) and then helps the owner obtain updated estimates from the owners contractor(s). Once the work starts, the construction specialist makes periodic inspections to make sure the work meets program requirements.

 

Resources

            Application

             Rental Property Improvement Workbook

 

             Tenant Forms

             Landlord Qualification Statement

              Entity Required Documents

             Lead Based Paint Booklet

             



Page created 09/04/2020

Community Housing Services Agency, Inc. 

1375 Chatham Parkway, 2nd floor

Savannah, Georgia 31402

CDFI

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