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Are you looking to upgrade your home or business? If so, the City of Gaylord may be able to provide some financial assistance.

Earlier this year, Gaylord and Arlington received a $609,000 federal grant for the rehabilitation of housing, commercial and rental property.

Byron Jost, of Pettipiece Associates, LLC, recently explained the Small Cities Development Program (SCDP) to Gaylord’s City Council. According to Jost, the grant money will be split 50/50 between Gaylord and Arlington.

Jost said the rehabilitation loan program has three major components – housing, commercial and rental property. The SCDP and the Cities are offering different levels of 0% interest, 10-year deferred loans for each component. Banks in Gaylord and Arlington have also agreed to set aside capital for the loan program.

HOUSING

For eligible homeowners interested in improving their homes, the SCDP assistance is in the form of a 0% interest, 10-year deferred loan.

According to Jost, the maximum loan for housing is $25,000 and 100% of the loan is forgiven after ten years. If the property title is transferred, the property is sold, or the owner is no longer living in the home within ten years of the repayment agreement, the loan is paid back to each community. The City would then establish a home improvement program of its own with this money.

Jost reported that the amount of the SCDP loan is dependent upon the applicant’s ability to take on additional debt. If the applicant has any affordability, they will be required to pay up to 30% of the total project cost, Jost explained.

The Cities of Gaylord and Arlington will also provide assistance in the form of a 0% interest, 10-year deferred loan, according to Jost’s report. The amount of the City loans is $4,900 per project.

To qualify for SCDP assistance, homeowners must meet income eligibility guidelines set by the federal government. There are also restrictions on what improvements qualify for the program.

COMMERCIAL

Commercial property owners interested in making improvements to their commercial buildings may also be eligible for financial assistance through the SCDP program.

According to Jost’s report, the rehabilitation program’s finance plan has these elements:

• 40% of the project paid through a 0% interest, 10-year deferred SCDP loan;

• 20% Gaylord Economic Development Authority low-interest (1.0 to 2.0%), seven-year installment loan;

• owner funds or local lender 7.5% interest installment loan;

The maximum amount of SCDP assistance for commercial property improvements is $40,000. Eligible property owners must be located in the Slum and Blight Districts established by each community. Gaylord’s Slum and Blight District includes most of the downtown area.

According to Jost, the commercial improvement program is designed to primarily address exterior building improvements.

RENTAL

Each rental property owner is eligible for up to $6,000 per unit from the SCDP program. The SCDP assistance will be in the form of a 0% interest, 10-year deffered loan that is 100% forgiven after 10 years.

There are eligibility requirements for SCDP assistance including: upon completion of the rehabilitation, at least 51% of the units in the building must be occupied by low and moderate-income households as defined by the U.S. Department of Housing and Urban Development (HUD) for a period of 5 years. In the case of duplexes, 50% of the dwelling units must be occupied by low and moderate-income households for a period of 5 years.

A total of 33 projects, including housing, commercial and rental property, were initially identified in Gaylord and Arlington through a preliminary survey. Identified in Gaylord were seven housing projects, 6-7 commercial building upgrades and 3 rental projects.

“This is a win-win situation,” said Denny Schultz, interim City Administrator for the City of Arlington. “This is a good program to get houses upgraded. It will also help area contractors get work.”

Schultz said assistance from this program will be distributed on a first come, first served basis. He said more information on the SCDP program can be obtained at upcoming public meetings planned for both Cities.

Gaylord will host its public meeting on the SCDP on Tuesday, June 26th at City Hall.