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Redevelopment Authority

Date TBD
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This agenda focuses on a proposed Rental Rehabilitation Revolving Loan Program for RDA Project Area #1. The program aims to improve housing quality, eliminate blight, and encourage private investment in older rental properties within the designated area.

Key Agenda Items:

  • RDA Project Area #1 Rental Rehab Revolving Loan Program: Discussion and potential approval of a program designed to provide financial assistance for rental property improvements.
  • Program Goals: The program aligns with the City of Monroe Comprehensive Plan 2025-2045 and aims to:
    • Eliminate blight and improve neighborhood aesthetics.
    • Increase the supply of quality, code-compliant housing.
    • Encourage private investment in older housing stock.
    • Stabilize or increase property values.
    • Support workforce or affordable rental housing.
  • Financing Options: Two options are being considered:
    • Option A: Low Interest Loan with Portion Forgivable:
      • Interest Rate: 0% or 1-3% (below market).
      • Term: 5-10 years.
      • Grant Amounts: $5,000 - $25,000 per loan.
      • Forgiveness: $2,000 - $5,000 (20% of total loan) after the first year.
      • Security: Mortgage/lien on property with a clawback clause if sold within the loan term.
    • Option B: 1:1 Match Grant: No loan repayment required.
  • Financial Considerations:
    • A seed fund of $125,000 is proposed.
    • Financial projections show that with 5 loans of $25,000 each, the fund would be fully disbursed.
    • With a 2% interest rate over 10 years, the projected return after 10 years is $120,000.

Important Details:

  • Eligible Properties: Non-owner occupied residential properties within RDA Project Area #1.
  • Eligible Uses: Exterior and structural improvements, health and safety upgrades, energy efficiency, accessibility upgrades, property code compliance, and ADUs (Accessory Dwelling Units).
  • Ineligible Uses: Luxury improvements, landscaping, non-residential structures, non-residential accessory structures (except ADUs), home furnishings, appliances, and interior renovations/additions.
  • Public Participation: While not explicitly detailed in this excerpt, city council meetings typically offer opportunities for public comment on agenda items. Citizens are encouraged to attend or contact the city for specific details on public hearing times or comment periods.

This program aims to revitalize rental properties and contribute to the overall improvement of the RDA Project Area #1.