New Loan Program Available to Rental Property Owners
(Delta, Colo.) – For those who own rental property, or wish to rent their property, a new loan program is available to support repairs and modifications, to ultimately increase rental housing stock in a region along Colorado's Western Slope. The Rental Rehabilitation Loan Program (RRLP) offers affordable financing to landlords or prospective landlords who own properties in Delta, Gunnison, Hinsdale, Montrose, Ouray, and San Miguel counties, for lease to low- and moderate-income renters. The program is a partnership between Colorado Housing and Finance Authority (CHFA), Delta Housing Authority, and Colorado Department of Local Affairs-Division of Housing.
"In these rural areas where very few new affordable rental housing units are being built, we are focusing on preserving and improving what rental units already exist, and adding units by converting vacant properties into rentals. The RRLP is an important financing tool for landlords to use to extend the long-term livability of their properties and better meet the needs of renters here in the region," said Karen Harkin, CHFA's Western Slope community relationship manager.
RRLP offers 15-year loans up to $24,999 per property or per multifamily property unit, at a 3 percent interest rate. Intended uses of the financing include health and safety improvements, energy efficiency upgrades, accessibility additions or repairs, and certain property cosmetics. The types of properties that may be eligible for RRLP include single-family detached homes, multifamily properties of up to four units, and mobile homes under certain conditions.
"Making improvements to a rental property is a win-win for the landlord, tenant, and community overall. The RRLP may help with improvements such as a new roof, windows, weatherization, HVAC, etc. Property owners might be challenged in finding financing that fits their needs and that's why we are excited to offer this new program. The Delta Housing Authority believes that it is essential to preserve the existing housing inventory in these six counties," said Ute Jantz, executive director of the Delta Housing Authority.
There are more than 18,000 renter households in the six rural counties targeted by RRLP. Of those households, nearly half—48 percent—are cost-burdened, meaning they pay more than 30 percent of their gross annual household income on housing costs. Additionally, 25 percent of renter households in these counties are considered extremely cost-burdened, paying more than 50 percent of their income towards housing costs.
"Attainable housing is essential for rural communities to retain and attract a talented workforce," said Alison George, director of the Colorado Division of Housing. "Everyone deserves to have a home they can afford and this program is focused on providing that stability in rural Colorado."
To learn more about RRLP or to apply, call Delta Housing Authority at 970.874.7266, extension 3 (800.545.1833 tdd).
CHFA strengthens Colorado by investing in affordable housing and community development. Created in 1973 by the Colorado General Assembly, CHFA invests in loans to low- and moderate- income homebuyers through our network of participating lenders, and makes loans to affordable multifamily rental housing developers and small and medium sized businesses. CHFA also provides education and technical assistance about affordable housing and economic development. CHFA is a self-sustaining public enterprise. CHFA issued debt is not the obligation of the state. For more information about CHFA please visit www.chfainfo.com, call its Denver office at 1.800.877.chfa (2432), or its Western Slope office at 1.800.877.8450.