The city of Madison’s Community Development Division launched a new Rental Rehabilitation Loan Program earlier this year. It offers landlords who charge no more than fair market rents in buildings with up to 20 units a loan to make major repairs to their properties to comply with building codes and regulations or implement energy-efficient upgrades in their units.
Owners of buildings with one–four units are eligible for loan amounts up to $75,000, while owners of buildings with seven–12 units are eligible for up to $150,000, and owners of buildings with 13–20 units are eligible for up to $200,000. In order to be eligible, at least 75% of the units in the building must be housing tenants whose incomes are at or below 80% of Dane County’s area median income.
Eligible uses for the loan include:
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Improvements necessary to meet the city of Madison minimum housing code;
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Improvements deemed necessary to enhance the livability and curb appeal of the property;
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Upgrades of major building components, such as roofs, windows, HVAC, plumbing, and electrical systems;
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Energy-related repairs, including installation or repair of solar panels;
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Weatherization improvements;
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Improvements required to facilitate use of the property by persons with disabilities;
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Energy Star-rated appliances that will stay within the unit(s);
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Landscaping work to reduce flood risks;
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Abatement or reduction of lead-based paint and other environmental hazards, like asbestos or radon; and
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Installing or repairing fences to enhance security.
Program funds will be available continuously until all funds are used. Applications will be processed on a first-come, first-served basis, with requests for assistance for emergency repairs being prioritized. Additionally, properties in targeted parts of Madison’s southwest, south, and north sides (specifically, U.S. Census tracts 6, 14.01, and 21) will receive more attractive loan terms and see their application fees waived.
The application and a full list of program requirements are available on the city’s Community Development Division website.
