Rental Rehabilitation Deferred Loan (RRDL)
The Rental Rehabilitation Deferred Loan Program assists owners of smaller rental properties located outside the seven county metropolitan area, to finance moderate rehabilitation of structurally sound residential rental units.
- The property is residential rental property including single family homes, duplex or larger apartments, as long as four or more units or single family homes are located within a single community or program area
- The property space is at least 51% utilized for rental housing
- The property is occupied by households with incomes less than 80% of the statewide median income
- The rent limit is the lesser 30% of local wages (2012 average) from the MN Department of Employment and Economic Development (DEED) data and 80% of the greater of statewide or area median income (AMI).
The borrower may be:
- An individual, private developer, non-profit, unit of government, or tribal housing corporation
- Delivered through a network of local administrators
- Simplified application process for individuals owning small properties
- The loan is an interest free deferred loan, with a term of 10 to 30 years
- Up to 25% of the loan may be forgiven
- The loan may be extended when it comes due for continued years of affordability
- Eligible improvements must be permanent general improvements, that have not been started prior to the loan closing
- Renovations or repairs such as: roof, window, and Furnace/boiler repair or replacement, and energy and water saving improvements.
- Improvements must be made in compliance with all applicable health, fire prevention, building, housing codes and standards, and RRDL Limited Scope Project Abbreviated Design Standards and Sustainability Requirements