The Napa City Housing Department this month updated the City’s Rental Rehabilitation Loan Program, which provides financial and technical services to landlords looking to renovate affordable rental apartments in the city.
As a result, the maximum loan amounts were increased by tens of thousands of dollars, in most cases per unit. (The maximum amount of credit allowed for renting a single-family apartment, for example, is now $ 75,000, up from $ 45,000).
“The Rental Rehabilitation Program had lower loan limits before, so if you had a rental property before we changed the rules, you could only borrow a smaller amount,” said Lark Ferrell, Napa Housing Manager. “It was kind of like that made sense.”
The city’s housing rehabilitation program provides interest-free subsidies and loans for home renovations. It serves low-income residents and families whose average income is 80% or less of the average income in the area, as well as the landlords who rent them out. (According to the California Department of Housing and Community Development, Napa’s median income is currently $ 109,200.)
The goal of the program is to improve and increase the number of affordable rental housing in the city in accordance with the updated guidelines.
Ferrell said the housing division has also raised the rent limits for eligible properties. Rent for eligible units must be below 30% of 80% – instead of 60% – of the AMI adjusted for the size of the household corresponding to the size of the apartment. This means that the maximum available monthly rent for a studio is, for example, $ 1,576.