Property and Applicant Eligibility
To be eligible, the property must be a small rental property and be located in the target area; may be owner occupied or an investor owned property; and must in “good standing” with Code Enforcement.
The applicant must have proof of ownership of the building; must be current on all City assessments; if owner occupied, must be at or below 80% of Median Family Income (MFI); and may not be elected or appointed City Official. At least 51% of the rental units in the property must be occupied by low-moderate income residents. (See Appendix 3: Median Family Income Guidelines). As part of the application, the owner must provide Tenant Income Verification Forms filled out and signed by the tenant. (See Appendix 4: Tenant Income Verification Form).
Interest Rates, Terms & Financial Information
Terms and rates are tiered based upon income and ownership:
1.) Owner Occupied: Low-income household at or below 50% Median Family Income (MFI) are eligible for a deferred loan at 0% for ten years. Must be principal residence. Loan may be forgiven in 10% increments per year over the ten year period. If sold before the 10 year time frame expires, any remaining balance not forgiven must be repaid.
2.) Owner Occupied: Low income household @ 51-80% MFI – loan must be repaid at 1% interest over up to 20 years. If the owner moves to a principal residence other than the primary property securing the city loan, the loan rate will convert to the applicable Investor Owned rate.
3.) Investor Owned: Principal residence inside Lewiston or Auburn, 2% up to 20 years or Principal residence outside Lewiston-Auburn, 3% up to 20 years
Owner Match: A 10% match per unit is required in the form of cash (no in-kind) from all applicants except low-income households at or below 50% MFI. Applicant may secure this match from a lender, owner equity, or insurance, etc. Match must be cash or liquid and available when the project is approved for funding.