Rental Improvement Fund (RIF)
Cluster 1 Cluster 2 Cluster 3 Cluster 5 Cluster 6
Philadelphia Housing Development Corporation (PHDC) offers loans for small property owners owning no more than 15 units across no more than 5 properties are eligible for full forgiveness or a preferable 0% interest rate if landlords meet program affordability requirements during the loan term. Loan amount must be between $10,000 and $24,000 per property. Term is 10 years. Forgiveness schedule: The loan will be forgiven 20% annually beginning in Year 6 if affordability requirements and other conditions are met. If not met, the interest rate is 4%.
Loan proceeds can be used for any repair that addresses a safety, health, habitability, energy or water efficiency, concern. Landlords must be able to produce a tax compliance certificate. Vacant properties must have a rental license. Properties must be able to comply with the building code after RIF-funded repairs are complete, which means the cost of all essential repairs must fit within the RIF loan amount.
Sources
- https://phdcphila.org/residents-and-landlords/landlords/rental-improvement-fund/
- https://phdcphila.org/residents-and-landlords/landlords/rental-improvement-fund/detailed-loan-terms/
- https://phdcphila.org/residents-and-landlords/landlords/rental-improvement-fund/rif-frequently-asked-questions/
Last updated: Nov. 8, 2024
Program details
City: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metro Area
Program geography: City
Entities involved: Non-Profit Organization
Market Category: Lower-Cost and Higher-Cost Market
Tool Category: Support for-profit Owners - Buy Rehab and Operate Existing Buildings
Tool Description: Forgivable Loan, Low Cost Financing
Year started: 2023
Building type: 6 units or less
Target tenants: at or below 60% AMI
Affordability restrictions: Yes. All units that are receiving the benefit of the proposed repairs are subject to the affordability requirements. In order for repayment to be deferred and for the loan to be forgiven, PHDC will request a copy of the current lease for the repaired unit(s) on an annual basis and review City records to ensure the following requirements are met: Any rent increase cannot be more than 3%, unless you lease to a tenant using a Housing Choice Voucher (HCV), in which case the landlord can continue to request rent increases from the Philadelphia Housing Authority (PHA). You must provide a current lease for the repaired unit(s) each year. The property must have any code violations identified by the Department of Licenses & Inspections (L&I) corrected within six months during the loan term. You must maintain an active rental license during the loan term. You must continue to own the unit(s) during the loan term.
Funding sources: