Own property? The city is giving money for rental rehabs
The city of Battle Creek has launched a program to fund rental housing development.
A total of $175,000 — funded by Community Development Block Grant funds from the U.S. Department of Housing and Urban Development — will offered during the 2016-17 year to help pay for projects to rehabilitate properties for rental housing.
The city will accept pre-applications until 2 p.m. Sept. 15. They can be submitted in Room 117 at City Hall, 10 N. Division St. Projects considered to be more viable during the pre-application process will be given a more comprehensive review to complete.
"This program will increase our housing density and mixed-use neighborhoods, providing housing that is walkable and connected to shopping, parks, jobs, schools and other community amenities," Community Development Manager Chris Lussier said in a news release.
Among the requirements:
- The program will be open to owners of "suitable structures, including prospective buyers with site control."
- Owners may be individuals, corporations or partnerships. Community-based developers also can apply and propose new construction.
- At least 51 percent of the rental housing units developed or rehabilitated must initially be occupied by households with less than the area median income, which is based on family size and determined by Housing and Urban Development. It's $44,400 for a family of four.
Properties "for which rental housing is the best use" will get funding priority, according to the city. Development or rehabilitation of single-family homes generally won't be considered.
Also, the city will favor projects in which the owner is an occupant, such as the rental unit of an owner-occupied duplex or a mixed-use building that houses the owner's business. Projects that "improve vacant or underutilized space," such as rehabilitating an unused upper floor, will get priority as well.
If granted funding, the city will place a five-year lien on the property, requiring no monthly payment nor interest. If there are no uncorrected code violations or conflicts of interest by the owner, the lien will be discharged and the amount of assistance will be forgiven at the end of the five-year period.
The city also will conduct a risk assessment before granting funds.
More information can be found by contacting Lussier at 269-966-3267 or at battlecreekmi.gov/562/Rental-Rehab-Program.
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Contact Jennifer Bowman at 269-966-0589 or jbowman@battlecreekenquirer.com. Follow her on Twitter: @jenn_bowman