A new citywide program is expected to help hundreds of small landlords in Philadelphia make needed repairs to their properties while keeping the units affordable to tenants amid rising rents. The Rental Improvement Fund offers two types of loans — 10-year forgivable loans of up to $24,999 per property and 15-year 0% interest loans of up to $50,000 per unit. Under the $9 million program, the maximum loan for a single landlord is $100,000. Participants can use the money to repair roofs, windows and doors. They can also use it for asbestos, mold and lead remediation, as well as electrical and plumbing improvements, among other repairs. “We know that mom-and-pop landlords have been really struggling. And if we let them go under, the affordable housing goes under and families go under,” said City Councilmember Jamie Gauthier. To qualify for the program, landlords must own no more than five rental properties and no more than 15 rental units. They must also have a valid rental license and property insurance, be current or in a payment agreement for city taxes, and have a tax compliance certificate. The only exception is if the loan will be used to address repair issues that are currently preventing the landlord from securing a rental license and/or insurance for a property. Under the program, landlords cannot raise monthly rents by more than 3% each year, unless they are leasing to a tenant with a Housing Choice Voucher. The initiative is funded by the Neighborhood Preservation Initiative — a $400-million program the city launched in 2021 — and the Whole-Home Repairs Program — a $125-million statewide effort designed to help homeowners and landlords struggling financially as a result of the COVID-19 pandemic.
Source: PlanPhilly; 8/23/2023