CITY OF BELLINGHAM
RENTAL REHABILITATION PROGRAM
The purpose of the City of Bellingham Rental Rehabilitation
Program (RRP) is to assist qualified investor owners of rental
properties located within the City limits to rehabilitate existing
units and to increase the supply of rental housing stock
available to low and moderate income families.
RRP City Subsidy:
The City, using Community Development Block Grant (CDBG)
funds, will fund up to 50% of the per unit rehabilitation costs or
a maximum of $7,500, which ever is less. Program funding is
dependent upon the availability of CDBG funds for the City.
Terms: Fixed rate loan, no payments and zero (0%) percent
interest. Ten year term. Loan is not assumable and is due upon
sale, transfer of title, or if the unit(s) cease to be occupied by
tenants whose income is at or below 80% of the median
income at the time of their initial occupancy. In the event of
default, the City, at its option, may increase the interest rate to
a maximum of twelve percent (12%).
Balance of Funds:
The portion of rehabilitation costs not funded by CDBG may be
from owner's own cash, borrowed from commercial lenders, or
borrowed from Key Bank under an agreement between Key
Bank and the City of Bellingham.
Terms: Under the agreement with Key Bank, the maximum
loan term is 15 years. The interest rate fixed at three quarters
of one percent above the Wall Street prime rate in effect at
loan approval. If a loan is not closed within thirty (30) days of
loan approval, the interest rate will be adjusted to reflect the
current Wall Street Prime Rate in effect at loan closing.
Maximum loan amounts under this agreement are $12,500 for
a detached single family unit or $7,500 per unit for a multi-
family (2-4 family) building. The loan is not assumable and is
due upon sale, transfer of title, or if the unit(s) ceases to be
occupied by tenants whose income is at or below 80% of the
median income at the time of their initial occ