Neighborhood Landlord Rental Program
The Louisiana Housing Corporation (“LHC”) will implement the Restore Louisiana Neighborhood Landlord Rental Program (“RLNLRP Initiative”) to provide assistance to landlord applicants (“Eligible Applicants”) experienced in renting residential properties to tenants or developing in-fill residential rental housing to be located in areas adversely affected by the 2016 Severe Storms and Flooding Events. Under the RLNLRP Initiative, LHC will accept applications from Applicants who will construct new residential rental housing units (“New Units”) or will renovate residential rental housing units (“Existing Units”) in a Qualified Project located in one of the parishes declared to be disaster areas (“Eligible Parish”) as a result of the March 2016 and August 2016 Severe Storms and Flooding.
Total funding available for the RLNLRP is $36 million for loans. This program is funded through the Community Development Block Grant Disaster Recovery Program (CDBG-DR) from the U.S. Department of Housing and Urban Development.
What Is Provided?
- Financial assistance will be provided in the form of a loan for permanent financing (“Take-out Commitment”) to take out the construction financing necessary for reconstruction, rehab and new construction of properties with 7 or less units. The loan may be fully forgiven at the end of the affordability term if the Eligible Applicant complies with all tenancy and affordability requirements for the term of the affordability period.
- Financial assistance will be provided for eligible unmet needs, after deducting all duplicative assistance such as NFIP proceeds, SBA loans, etc.
- In return for assistance, each assisted unit will be required to meet an affordability period which requires the owner to rent to a low income tenant for a set amount of time.
- Loan will not be granted until the construction has been completed on the property, an income eligible tenant has been identified and a lease has been signed.
- Eligible Applicants may apply for assistance not exceeding one million five hundred thousand dollars and no Eligible Applicant may submit more than three (3) Complete Applications.
An Applicant must either partner with a pre-qualified commercial lender (“Lender”) who commits to provide the Applicant construction financing (“Construction Loan”) and/or fund all development costs with the Applicant’s own funds for all construction monitored by the LHC. An Applicant using non-borrowed funds to finance construction must submit to the LHC a Closing Docket and arrange to commence construction financing.
The Take-out Commitment will occur on the Conversion Date which is the date of initial occupancy by an Eligible (low income) Tenant following completion of construction or renovation of a residential housing unit. All assisted units will be restricted to affordable rents during an affordability period.
Who Is Eligible?
To be eligible for benefits under the RLNLRP, an applicant must meet the following criteria:
- Community Housing Development Organization (“CHDO”)
- 501(c)(3) or 501(c)(4) Not-For-Profit Organization (“NPO”)
- Local Public Housing Authority (“PHA”)
- A local development agency (“LDA”) that is not a parish or municipality
- A private for-profit property owner (“Residential Rental Property Owner”) organized under Louisiana law
Rental Property Eligibility Requirements
In order for a property to be eligible to be repaired, reconstructed or newly constructed under the RLNLRP initiative, a property must meet the following criteria:
- Must be a structure with not-to-exceed 7 units. Properties with more than 7 units contained within a single structure are not eligible under the Program;
- Site-built, modular or manufactured home
When Does the Program Start?
The Program’s estimated timeline is below. Applicants will be able to apply in late May and June and Take-out Commitment Announcements will begin in mid-July.
Tangipahoa (City of Covington Council Chambers) April 24 – 9:00 am – 12:00 pm
Lafayette Parish (Lafayette Public Library) April 25 – 9:30 am – 12:30 pm
Caddo Parish (Bill Cockrell Community Center) April 27 – 9:00 am – 12:00 pm
Ouachita Parish (West Monroe Convention Center) April 28 – 9:00 am – 12:00 pm
East Baton Rouge Parish (Louisiana Housing Corp) May 1 – 9:00 am – 12:00 pm
Outreach and Marketing of Program to Lenders May 5
Notice of Funding Availability May 15
FAQ’s Published June 9
Application Intake Deadline June 16
Commitment Letters Issued July 3