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I I I I I I I I I I I I I I I I i I Substantial Rehabilitation Loan Program Eligible Proiects: The funds must be used in an area of current concentrated redevelopment effort - there will be no community-wide projects. HUD will look for involvement other than 312 in the area. Previous efforts will not be considered. The rehabilitation may be for single family, rental, or commercial properties. Loan Limit: Single family and rental - $27,000 per unit, limited by debt/value Commercial: 8096 of appraised after-improvement value not to exceed $100,000 Interest: 3% for single family lower income, 996 for other single family 996 for rental and commercial with reduced rate available for 5196 private co-payment. Term of Loan: Up to 20 years. Types of Improvements: Predominantly code and safety with provision for other "general improvements" (5/2 residential, 5/1 commercial ratios of code to general improvements). Administrative Costs: Coverage is not available from 312 funds. You may however use CDBG to cover the administrative costs. Loan Processing: Applications, appraisals, credit checks, will be performed by one contracting agency, with responsibility for cost assumed by the communities (again, CDBG may be used). Loan Approval: Made on an individual property basis by HUD. Loan Servicing: Done by HUD. At the point a loan is closed, the County and community are removed from the process. All collection efforts are performed by HUD. Federal Rules and Regulations: Commercial and some rental rehab is subject to Davis-Bacon and bidding requirements. Please keep in mind that unlike the CDBG program, the 312 Rehab Program is not an "entitlement". We have no guarantees on the amount of funds available and each proposed project (even each individual loan application) is subject to HUD approval. HUD will be particularly looking for evidence of current improvement efforts in the area. m