frequently asked Questions
What services does the program provide?
The services of the Rehab Loan Program include: performing rehab inspections; estimating costs; establishing a rehab plan; managing and monitoring the rehab; providing a below-market-rate loan and/or submitting a loan application to a local bank for financing; providing a deferred payment rehab loan; counseling on property management and maintenance; working with tenants to assure that their rent is affordable.
What is a deferred payment rehab loan?
CNAHS has received financing from the City of Cambridge, through the Cambridge Affordable Housing Trust, to make deferred payment rehab loans available. These are loans that multi-family property owners can use to reduce the costs of building improvements. In exchange, the owner provides affordable rehabbed apartments to income eligible tenants. In most cases the loans can be forgiven: no payments need ever be made.
How does the program work?
CNAHS works with property owners to determine the level of rehab that is needed. Work specifications are written and several contractors will review the proposed work and submit a bid. A financial analysis is performed to insure that the operating costs and any rehab debt will be covered by the proposed rents. A financing package is then put together utilizing conventional financing and deferred payment rehab loan financing from CNAHS, so that the rents will be affordable for the tenants. Loans are approved and a contractor is selected. The loan closes and the rehab begins. The entire rehab process is supervised by CNAHS to assure it is done properly.
What properties are eligible for CNAHS assistance?
Multi-family buildings are eligible for CNAHS assistance. Priority will be given to properties having the greatest concentration of low- to moderate-income families and to buildings with family sized apartments.
What type of rehab is eligible under the program?
Any type of rehab qualifies for assistance from CNAHS, such as: new roofs; upgrading electrical service; new bathrooms and kitchens; new windows; exterior siding; painting; heating systems; deleading; energy conservation. Priority will be given to renovations that will correct all existing code violations and preserve or restore the soundness of the building’s structure.
How does the program help property owners?
CNAHS makes the entire rehab process easier by providing both financial and technical assistance to property owners who wish to rehab their property. This assistance will result in improved buildings that will be financially manageable and more attractive. Owners who are concerned that renovating their property could result in unaffordably high rents for their tenants can now do the rehab and keep their tenants’ rents affordable.
How does the program help tenants?
The program’s goal is to assist property owners in renovating apartments while keeping rents affordable. Deferred payment rehab loan financing allows owners to keep their debt low, resulting in affordable rents for low- and moderate-income tenants. Tenants will not only have improved housing conditions but will also be able to afford the rent.
How do I apply?
If you believe that you meet the eligibility requirements outlined above, you can either call the office at (617) 491-1545, ext. 208, or simply come by the office at 280 Franklin Street, Cambridge, conveniently located in Central Square. You are then briefly prescreened for eligibility. If you qualify and want to apply, you will receive an application along with other documents to complete and return to the office.