SMALL RENTAL PROPERTIES PROGRAM

The Small Rental Properties Program (SRPP) was designed to help local gov­ernments meet a persistent affordable housing problem—  the need to rehabil­itate rental properties with 11 or fewer units to increase or preserve the stock of low-income apartments, particularly in small rural communities. Governments are encouraged to structure their programs to meet specific, local rental rehabilitation needs. Small rental prop­erties are defined by the HOME Program as those with one to 11 units.

Property owners interested in SRPP should contact participating local governments, rather than IHDA, for detailed program information. (However, property owners may contact IHDA to obtain a list of local governments which take part in SRPP.)

PROGRAM PARAMETERS

• Affordability Period: Property owners who take part in SRPP-assisted develop­ment must adhere to the following rent and income limits for a period of five years.

   For properties with five or more units, at least 20 percent of the SRPP-assist­ed units must be occupied by “very low-income households,” with annual incomes at or below 50 percent of the area median. The remaining 80 per­cent of units are reserved for tenants deemed “low-income,” with yearly incomes at or below 60 percent of the area median income. Landlords must not exceed the Low HOME Rents set by HUD for very low-income renters or the High HOME Rents for low-income renters.

   For properties with four or fewer units, only the High HOME Rents apply, and all units can be rented to low-income tenants with incomes at or below 60 percent of the area median income.

•  Levels of SRPP Assistance: SRPP requires a minimum per-unit HOME investment of $2,000, and the maximum HOME subsidy is $14,999. Actual rehabil­itation costs per unit may be greater than $14,999. Rehabilitated properties must meet HUD and IHDA housing quality standards.

•  Property Owner Contributions: Property owners assisted through a HOME SRPP

   Program must contribute a minimum of 25 percent of the total project cost, either with cash or a loan.

For more information about SRPP, please call the HOME Department at (312) 836-5200.