Rental Program
The City of Spokane’s Community Development Department sponsors this program, which Kiemle & Hagood Company administers. The Program provides low interest loans to owners of single family (1-4 units) rentals.
Who Can Apply?
The program is designed to assist for-profit, independent landlords who own single family rentals (1-4 units) in the City of Spokane. Owners/partnerships may only receive assistance for one building per Program year.
How Do I Qualify?
The Owner must demonstrate that the project has sufficient cash flow to be viable and that there will be sufficient equity in the property after rehabilitation is complete (10% equity remaining based on county assessed value or 20% based on appraised value). Additionally, the mortgage payments, taxes and insurance must be current and title insurance must be attainable to protect the City’s lien position.
What Properties Are Eligible?
Single-family homes, duplexes, triplexes or four-plexes are eligible.
How Much Work Can I Get Done?
The maximum loan amount is for $10,000 per unit – a four-plex could actually use $40,000. We will work with the Owner to determine the breakout for the building i.e. for a triplex, the bulk of the funds might go for exterior improvements plus plumbing in one unit.
What Type of Work Can Be Done?
The focus of the Program is to deal with Health & Safety repairs such as electrical, plumbing, HVAC, meth lab clean-up, flooring, structural repairs, roofing, windows including egress, handicap accessibility improvements, cabinets, lead paint mitigation, and doors.
Can I Do My Own Work?
Yes – The Program will pay for all work done by General Contractors, Subcontractors, and the materials purchased by the Owner if the Owner wishes to do work themselves. The Program will not pay the Owner for any labor or services they perform. Note: if used in conjunction with Lead Safe Spokane Program, approved contractors must complete all work.
What Work Can’t Be Done?
The Program cannot: convert a single-family residence to a two or more family dwelling; provide or repair moveable appliances; provide materials, fixtures or equipment which exceeds in cost that customarily used in Spokane for properties of a similar type; work on detached outbuildings or garages; or add to the existing structure.
How Do the Construction Payments Get Made?
The Owner will submit paid bills to Kiemle & Hagood Company. When the Owner, the Building Official, and the Contractor agree that the work billed is completed and acceptable, Program staff will verify the billings and certify that the work has been performed. Upon certification, staff will authorize a partial or final payment.
What Kind of Loan Is It?
The loan will be secured as a lien against the subject property and will have an interest rate of 3% with a 10-year repayment term. The minimum monthly payment is $50.00.
Do I Have to Follow Rent Restrictions?
The Owner must agree to rent to households whose incomes are at or below 80% of AMI as defined by HUD for a period of five years. Additionally, rents must remain “affordable” for the same five years.
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