The Targeted Rental Rehabilitation Program is a financial assistance program designed to assist owners of rental property to rehabilitate their residential units in a targeted area. The program is a combination of private funds and the city’s Community Development Block Grant (CDBG) Program. The program’s emphasis is on providing safe, decent, and affordable rental housing within the City of Parkersburg.

ELIGIBILITY REQUIREMENTS

• The structure must be located within the following boundaries: 13th Street to 19th Street, Avery Street to St. Mary’s Avenue.
• The landlord must own the structure outright or with a single Deed of Trust.
• The property must be physically and financially feasible of being rehabilitated.
• The owner must provide adequate evidence of a financial ability to privately match one-half of cost of the rehab.
• The structure must contain a minimum of one unit and a maximum of eight units.
• Priority will be given to buildings currently housing low-income residents
• Priority will be given to units that require fewer subsidies.
• Priority will be given to projects with higher equity participation of the owner.
• The structure cannot have been previously assisted with City or CDBG funds.

ELIGIBLE REHABILITATION ITEMS

Upgrading code violations, including roofing and façade improvements, electrical and rewiring, plumbing, heating, insulation, making units accessible to handicapped individuals, kitchen fixtures and bathroom fixtures if determined to be unsafe or unsanitary, and modernize the structure with respect to Housing Quality Standards (HQS).

FINANCING

The city will match up to 50 percent of the cost of the rehabilitation on a five-year forgivable loan. The maximum amount that the city will loan is $10,000 per rental unit. The minimum loan amount is $1,000. Twenty (20%) percent of the loan will be forgiven each year. The landlord must keep the improvements in place for 5 years, charge no higher than the HUD rent limits and rent the units assisted to low and moderated income period for the 5 year period. If the owner fails to abide by the income, rent or maintenance guidelines for the period or transfers or sells the property in that period, the amount of the loan that has not been forgiven will become immediately due to the City of Parkersburg.

The owner must also comply with all fair housing laws in regard to renting the rehabilitated units.

INCOME AND RENT GUIDELINES

Landlords applying for Rental Rehabilitation Loans are not required to fall within income limits. However, tenants in the project property must fall within the maximum income guidelines as outlined below:

1 person $28,100
2 people $32,100
3 people $36,150
4 people $40,150
5 people $43,350
6 people $46,550

Owners may not charge more than the following monthly rents for the rehabilitated units:

1 Bedroom $435
2 Bedrooms $557
3 Bedrooms $740
4 Bedrooms $798

Maximum rents will be reduced by a utility allowance, established by HUD, for all tenant paid utilities. Tenants must be certified on initial occupancy and annually until the five years from the completion of the units.

Income and rental limits are revised periodically; last revision for income was in Feb 2008 and Feb 2007 for rent limits. Owners must comply with all revisions of these incomes and rents by HUD.

PROGRAM BENEFITS

• Increased property value after rehabilitation
• Excellent financing to improve properties
• Improved neighborhood environment

If you are interested in this loan program or have any questions, please call the Parkersburg Housing Division at 304.424.8418.