The rental rehabilitation component is designed to help a local unit of government provide funding assistance to improve the number or income producing, investor/owned properties in a downtown area. Investor/owners are required to contribute a minimum of 25% of the total project cost for each rental unit being rehabilitated. In a Blueprint community such as Ypsilanti, MSHDA’s Office of Community Development (OCD) could provide up to $25,000 in hard rehabilitation costs and up to $10,000 for lead-based paint related costs for each rental unit. Rents are then controlled for 51 percent of the units and must remain affordable for a period of five years. The balance of units, the other 49%, can be rented at market rates.
The OCD funds utilized in each project are held as a lien against the property during the 5-year affordability period. While the local unit of government would have some flexibility on how the lien is structured, generally the MSHDA lien is forgiven at the end of the affordability period. All properties must be rehabilitated to a minimum of Housing Quality Standards and local codes. Tenant incomes must be certified annually.
For more information call Brian Vosburg, DDA Director at 734-482-1410 or at brian@ypsilantidda.org to be part of a coordinated application for funds.
