05 - Future Project Considerations

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PROJECT INFORMATION L PURPOSE The program is intended to encourage building renovations through financial incentives to property owners for improvements to building conditions. While building owners may want to do improvements, coming up with the cash can be difficult. This program will assist building owners make needed repairs to their buildings for the long-term benefit of downtown. Grants and 3% interest loans will be provided. ELIGIBILITY: All property owners, for-profit businesses, and not-for-profit organizations with leasehold improvement provisions, willing to improve the exterior of properties located within the downtown target area are eligible to receive assistance. FINANCIAL ASSISTANCE: In order to complete rehabilitation activities, the project is proposing to provide portions of the rehab cost in the form of a 0%, 10 year deferred loan (grant) and a 3%, 15 year loan. For commercial rehab the program funds could cover 66% of the costs and for rental housing rehab the program could cover 100% of the costs. EXAMPLES (Please review the letter of intent samples for more information) Example 1: Total project cost of$30,000 to renovate 3 rental housing units. SCDP share:$24,000,owner share:$6,000. $12,000 0% deferred for ten years(forgiven 1/101,per year) $12,000 3% loan for 15 years $6,000 Owner debt/equity or gap financing Example 2:Total project cost is$114,650 to renovate 11 rental housing units. SCDP share would be $88,000;owner share$26,650. $44,000 0% deferred for ten years(forgiven 1/101,per year) $44,000 3%loan for 15 years $26,650 Owner debt/equity or gap financing Example 1: Total commercial project cost of$40,000,SCDP share:$26,400,owner share:$13,600. $13,200 0% deferred for ten years (forgiven 1/10th per year) $13,200 3% loan for 15 years $13,600 Subject to bank terms Example 2:Total commercial project costs of$80,000,SCDP share:$40,000,owner share:$40,000. Note that in example 2, the owner match becomes more than 33% because the maximum amount that can be financed by SCDP Program is$40,000 per building.