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312 Subs~tantLal Rehabilitation Loan Pre, ram <br /> <br />The funds must be used in an area of current concentrated redevelopment <br />effort o there will be no community-wide projects. HUD will look for <br />involvement other than 312 in the area. Previous efforts will not be <br />considered. <br /> <br />The rehabilitation may be for single family, rental, or commercial <br />properties. <br /> <br />Loan Limit: <br /> <br />Single family and rental - $27,000 per unit, limited by debt/value <br />Commercial: 80% of appraised after-improvement value not to exceed <br />$100,000 <br /> <br />Interest: <br /> <br />396 for single family lower income, 9% for other single family <br />996 for rental and commercial with reduced rate available for 51% private <br />co-payment. <br /> <br />Term of Loan: Up to 20 years. <br /> <br />Types of Improvements: Predominantly code and safety with provision for <br />other '~eneral improvements" (512 residential, 511 commercial ratios of code to <br />general improvements). <br /> <br />Administrative Cxv;ts: Coverage is not available from 312 funds. You may <br />however use CDBG to cover the administrative costs. <br /> <br />Loan Processing: Applications, appraisals, credit checks, will be performed by <br />one contracting agency, with responsibility for cost assumed by the <br />communities (again, CDBG may be used). <br /> <br />Loan Approval: Made on an individual property basis by HUD. <br /> <br />Loan Servicing: Done by HUD. At the point a loan is closed, the County and <br />community are removed from the process. All collection efforts are performed <br />by HUD. <br /> <br />Federal Rules and Regulations: Commercial and some rental rehab is subject to <br />Davis-Bacon and bidding requirements. <br /> <br />Please keep in mind that unlike the CDBG program, the 312 Rehab Program is <br />not an "entitlement". We have no guarantees on the amount of funds available <br />and each proposed project (even each individual loan application) is subject to <br />HUD approval. HUD will be particularly looking for evidence of current <br />improvement efforts in the area. <br /> <br /> <br />