Rental Rehabilitation Program

[Patrick Goswitz]

Has anyone had any experience with a Rental Rehabilitation Program when purchasing an investment property? It seems like a pretty good deal but also seems like it could be a big headache when dealing with the city. I can get up to 30k/ unit for a multi family home in renovations but must rent to low income for 10 years.

"The City of Knoxville's Rental Rehabilitation Program provides owners of substandard residential rental property with financial and technical rehabilitation assistance. In return for the City's rehabilitation assistance, participants agree to certain long term (5-20 years) rent and occupancy restrictions which provide for the continued availability of the housing to lower income families at an affordable rent. The Program utilizes forgivable loans called "Deferred Payment Loans," which require no monthly payments to subsidize the required costs of rehabilitation. Total funding is limited to 80 percent of cost of required rehabilitation or a maximum of $30,000 per unit."