Distressed in Downtown

[Charlotte Williams]

When you have a downtown or other distressed neighborhood, aren't there funds that you can be awarded to fix that home; windows; etc.?

[Bill Gulley]

Welcome to BP!

Yes, usually, depends on the municipality, if state and federal economic development funds are received or if HUD has a grant or loan program that the city can qualify for.

See if your city has an economic development office.

Banks are also under the Community Reinvestment Act, a % of loans must meet certain community needs. However, there are many ways for a bank to meet this requirement and it may be difficult for the average investor to obtain a loan strictly under this Act, but it may be done.

Might read the thread "Profits in Non-Profits" partnering with these organizations may allow participation with grant money.

States may have special funds set aside for "economic development zones" these are distressed areas in a community and programs vary.

Lastly, for the big guys mainly, there are programs for syndicated tax credits under IRS Code Section 42 that may be used for MF/SF and mixed developments and redevelopment of distressed properties.

Realize that any time government is involved with financing, there will be strings attached, mot all of these programs will require providing housing to low-moderate income tenants at different levels. Acceptance of Section 8 may be required. :)