The Program's financial assistance is provided in the form of a 10-year, 0%-interest, payment-deferred, 100% forgivable loan secured by a mortgage on the property. A maximum rehab loan of $30,000 per unit is available.
Ten percent of the total loan amount will be forgiven each year that the owner occupies the dwelling and meets the rental unit affordability and related Program requirements.
The balance of the loan must be paid in full if the owner no longer occupies the property, cannot demonstrate compliance with Program affordability and related requirements, or sells/transfers ownership of the property before the end of the 10-year financing term. (As an exception, the owner may sell or transfer ownership to a low- or moderate-income owner or heir who will comply with Program requirements for the remainder of the 10-year term and agree to assume the outstanding City mortgage.)