Rental Rehabilitation Loan Program
The purpose of the Rental Rehabilitation Loan Program is to preserve existing affordable rental housing options in Saint Paul. Eligible properties include occupied single-family, duplex, triplex or fourplex rental buildings currently classified as C or D by the Department of Safety and Inspections (DSI), or classified as A, B, C or D in ACP50 priority areas.
The Metropolitan Council defines Areas of Concentrated Poverty (ACPs) as census tracts where 40% or more of the residents have family or individual incomes that are less than 185% of the federal poverty threshold. To identify areas where people of color experience the most exposure to concentrated poverty, the Council further differentiates Areas of Concentrated Poverty where 50% or more of the residents are people of color ACP50s.
The Department of Planning and Economic Development (PED) has reserved up to $750,000 to be distributed to responsible landlords desiring to upgrade their current property classification by making property improvements that increase the safety and quality rental units.
- have a valid Certificate of Occupancy
Eligible properties are highlighted in orange on the map below.
Loan Limits and Term Length
- Up to $30,000 per building
- Amortized quarterly over 10 years
- 0% interest
- Distributed on a first come, first served basis until the program's complete fund of $750,000 has been distributed.
In order to help preserve our city’s affordable housing options, participating landlords must not increase rents of the assisted units by more than 3% per year while remaining at, or below, the HUD Fair Market Rents for the entirety of the Loan term. More information is included in the “program policies” document.
- If you are awarded a loan, DO NOT permit your contractors to start work on your property prior to loan closing. Work started before loan closing is not eligible for funding.
- Rents of the assisted units will be restricted to no more than a 3% yearly increase while also remaining at or below Fair Market Rents (less tenants paid utilities) for the duration of the loan term.
- The loan will be due in full if the borrower sells, transfers the title, or fails to comply with any of the other program requirements as defined in the loan documents.
- After the completion of the project, the property must meet the minimum rental housing standards as confirmed by annual inspections.
- Through the duration of the loan term, the property must not be down graded by DSI.
- Landlords whose applications are accepted for this Program must submit the Annual Self Certification of Rents and Incomes with their application, as well as every year of the loan term.