Investor Loan Program
The
Investor Loan and CHDO Investor Loan Program provides funds to assist
in the rehabilitation of substandard rental housing units to meet HUD
Section 8 Housing Quality Standards or construction of rental housing
to low- or very low-income persons in the City of Detroit.
This
program encourages for-profit and not-for-profit developers to
rehabilitate and/or construct rental properties of 20 or more units.
Funds
are available to developers who agree to maintain affordable housing
for up to 15 years for rehabilitation projects and 20 years for new
construction projects. The developers must also agree to restrict
those units to low-income households.
The City will finance a
portion of the total development costs (pre-development, acquisition,
soft costs and renovation or new construction) with HOME funds as a
deferred payment loan, and below-market interest rate loan or other
loan variations required to maintain rents affordable to the targeted
income populations.
Maximum amount of assistance varies with
unit size: efficiency units- $45,000; 1 bedroom units- $60,000; 2
bedroom units-$65,000; and 3-4 bedroom units-$75,000.
For details on the availability of funds and how to apply, contact:
Housing Services Division
65 Cadillac Square, Suite 1900
Detroit, MI 48226
313-224-3461
Hours: 8:30 a.m. - 4:30 p.m. (Monday - Friday)