Services Departments Government

North Clackamas Revitalization Area (NCRA) Rental Rehabilitation Loans

(For rental property that is not owner-occupied)

I. Basic Criteria for Rental Housing Rehabilitation Loans

To participate in the Rental Housing Rehabilitation Program, a property owner must submit an application and meet each of the following basic criteria:

A. If the applicant is a private individual, the applicant must be a US citizen, a US non-citizen national or a qualified alien.

B. The property must be located in the North Clackamas Revitalization Area (NCRA).

C. The property taxes must be current; however, deferred taxes are acceptable.

D. The applicant must own or be buying property and must be in title. The preliminary title report must be satisfactory to the County.

E. The applicant must have sufficient equity to cover the loan and all existing encumbrances.

F. The applicant must have good credit.

G. The applicant’s income must be sufficient to cover payment(s) on the existing debt on the property and other financial obligations.

H. The rental property must be suitable for rehabilitation and the proposed rehabilitation must be economically feasible.

I. Preference may be given to rental properties with a greater number of affordable units.

J. All projects will display signage indicating the Clackamas County Development Agency’s (CCDA’s) involvement in the improvements. The sign will be supplied by the CCDA.

II. Rental Housing Rehabilitation Loans

A. Purpose. The Rental Housing Rehabilitation Loan Program provides deferred loans to eligible property owners (landlords) with affordable rental units, for needed and critical repairs and improvements.

B. Fund Source: Urban renewal funds for CCDA loans.

C. Interest Rate. The Housing Rehabilitation Program sets interest rates that reflect market conditions and community needs. The program charges simple interest on the outstanding principal of the loan.

D. Affordability Requirements. In order to qualify for a rental rehabilitation loan, current rental rates for the rental property must meet minimum affordability requirements. See Table 2 below for terms.

Table 1 - Property / Rental Rates Interest Rate Loan Type
Property: Owned by governmental entity or non-profit organization.
0% per annum
Deferred
Affordability: All single-family, two-family or three-family units are restricted to an affordability rate of 65% of median family income (MFI) or less as set out in Section XXX.
All multi-family rental units are restricted to an affordability rate of 80% of MFI or less, and
At least 20% of the units having an affordability rate of 50% of MFI or less, or
At least 40% of the units having an affordability rate of 65% of MFI or less.
   
Property: Rental properties containing a single-family, two-family or three-family dwelling (duplex or triplex)
3% per annum
Deferred
Affordability: All units restricted to an affordability rate of 65% of MFI or less as set out in Section XXX.    
Property: Multi-family rental properties.    
Affordability: All multi-family rental units are restricted to an affordability rate of 100% of MFI or less, and one of the following conditions must apply:
At least 20% of the units are restricted to an affordability rate of 50% of MFI or less; or
At least 40% of the units are restricted to an affordability rate of 65% of MFI or less; or
At least 60% of the units are restricted to an affordability rate of 80% MFI or less, as set out in Section XXX.
5.25% per annum
Deferred

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