*******ATTENTION: THE APPLICATION DEADLINE FOR THE NEIGHBORHOOD LANDLORD RENTAL PROGRAM HAS BEEN EXTENDED TO CLOSE OF BUISNESS 8/16/2017********

 

Program Description

The Louisiana Housing Corporation (“LHC”) will implement the Louisiana Neighborhood Landlord Rental Program (“LNLRP Initiative”) to provide assistance to landlord applicants (“Eligible Applicants”) experienced in renting residential properties to tenants or developing in-fill residential rental housing to be located in areas adversely affected by the 2016 Severe Storms and Flooding Events. Under the LNLRP Initiative, LHC will accept applications from Applicants who will construct new residential rental housing units (“New Units”) or will renovate residential rental housing units (“Existing Units”) in a Qualified Project located in one of the parishes declared to be disaster areas (“Eligible Parish”) as a result of the March 2016 and August 2016 Severe Storms and Flooding.


Total funding available for the LNLRP is $36 million for loans. This program is funded through the Community Development Block Grant Disaster Recovery Program (CDBG-DR) from the U.S. Department of Housing and Urban Development.


What Is Provided?

  • Financial assistance will be provided in the form of a loan for permanent financing (“Take-out Commitment”) to take out the construction financing necessary for reconstruction, rehab and new construction of properties with 7 or less units. The loan may be fully forgiven at the end of the affordability term if the Eligible Applicant complies with all tenancy and affordability requirements for the term of the affordability period.
  • Financial assistance will be provided for eligible unmet needs, after deducting all duplicative assistance such as NFIP proceeds, SBA loans, etc.
  • In return for assistance, each assisted unit will be required to meet an affordability period which requires the owner to rent to a low income tenant for a set amount of time.
  • Loan will not be granted until the construction has been completed on the property, and a certificate of occupancy is awarded. 
  • Eligible Applicants may apply for assistance not exceeding one million five hundred thousand dollars and no Eligible Applicant may submit more than three (3) Complete Applications.

An Applicant must either partner with a pre-qualified commercial lender (“Lender”) who commits to provide the Applicant construction financing (“Construction Loan”) and/or fund all development costs with the Applicant’s own funds for all construction monitored by the LHC. An Applicant using non-borrowed funds to finance construction must submit to the LHC a Closing Docket and arrange to commence construction financing.

 The Take-out Commitment will occur on the Conversion Date following completion of construction or renovation of a residential housing unit. All assisted units will be restricted to affordable rents during an affordability period.


Who Is Eligible?

To be eligible for benefits under the LNLRP, an applicant must meet the following criteria:

  • Community Housing Development Organization (“CHDO”)
  • 501(c)(3) or 501(c)(4) Not-For-Profit Organization (“NPO”)
  • Local Public Housing Authority (“PHA”)
  • A local development agency (“LDA”) that is not a parish or municipality
  • A private for-profit property owner (“Residential Rental Property Owner”) 

Rental Property Eligibility Requirements

In order for a property to be eligible to be repaired, reconstructed or newly constructed under the LNLRP initiative, a property must meet the following criteria:

  • Must be a structure with not-to-exceed 7 units. Properties with more than 7 units contained within a single structure are not eligible under the Program;
  • Site-built, modular or manufactured home

Program Description  

Application

NOTE BEFORE AN APPLICATION IS SUBMITTED ALL REQUIRED DOCUMENTS BELOW MUST BE PRESENT

Required Application Documents

*All below documents should be included with each application to be considered complete*

New construction

  1. Site plan
  2. Floor plan
  3. Front, side and rear elevations
  4. Certification Regarding Sources and Uses of Funds Statement and No Duplication of Funds (Please provide any SBA or NFIP paperwork associated with the unit)
  5. Preliminary checklist indicating “Green Building” compliance with appropriate standard
  6. Evidence that project meets zoning requirements
  7. Evidence that the proposed housing unit is not in a special flood hazard area (This can be an elevation certificate or a print out from the LSU Ag Center Flood Map Site)
  8. Construction Contract with complete scope of work to include needed appliances
  9. Stop Work Order Provision Document
  10. Commitment contingent upon receipt of LNLRP (This should be a lender commitment letter or equivalent)


Rehabilitation

  1. Site plan
  2. Photos of front, rear, and sides of exterior
  3. Photos of each room
  4. Complete scope of work to include needed appliances
  5. Proposed compliance alignment of the scope of work with HUD CPD Green Building Retrofit Checklist
  6. Certification Regarding Sources and Uses of Funds Statement and No Duplication of Funds evidence of commitment and availability of all permanent and duplicative funding sources necessary to complete the project.(Please provide any SBA or NFIP paperwork associated with the unit)
  7. Evidence that project meets zoning requirements
  8. Evidence that the housing unit is not in a special flood hazard area (This can be an elevation certificate or a print out from the LSU Ag Center Flood Map Site)
  9. Vacancy certification
  10. Construction Contract (If work has been started on the units)
  11. Construction Quote (If work hasn’t been started on the units)
  12. Stop Work Order Provision Document
  13. Commitment contingent upon receipt of LNLRP(This should be a lender commitment letter or equivalent)
  14. Tenant Certification

Special Flood Hazard Zones are labeled as: Zone A, Zone AO, Zone AH, Zones A1-A30, Zone AE, Zone A99, Zone AR, Zone AR/AE, Zone AR/AO, Zone AR/A1-A30, Zone AR/A, Zone V, Zone VE, and Zones V1-V30.

                 

Allowable Tenant Rents and Utility Allowance by Parish/City

Lenders Who Expressed Interest in the Program

This list will be updated as more lenders express interest

 

Bank Name Areas Served Contact Name Contact Number
Guaranty Bank  East Baton Rouge Terry Brown 985-974-2780
Home Bank Lafayette, Baton Rouge, New Orelans, and Northshore Brandon Kelly 225-300-8327
Investar Bank  East Baton Rouge, Ascension, Livingston, Tangipahoa, St. Tammany, Lafayette, and Evangeline Missy Pace 225-227-2219
 WoodForest National Bank  Lake Charles, Lafayette, Eunice, Jennings, Houma, Baton Rouge, Tangipahoa, Orleans-Metairie MSA (10 parishes), Alexandria, Monroe, Morehouse, Lincoln, Shreveport  K. Lavon Burbank  504-261-5067
       
       
       
       
       
       

 

Are you not able to Complete the Application Via the Website?

If you are unable to submit the application online, you may call 225-763-8700. A program staff member will assist you in filling out the application. If the application is being taken by phone, all application documents should be mailed to the following address:

Louisiana Housing Corporation
Re:The LNLRP Initiative
2415 Quail Drive
Baton Rouge, LA 70808

Please include applicant/company name & return address

 

Legal Documents

  • Document 1
  • Document 2
  • Document 3

Do you have any questions about the program? Please email disasterrecovery@lhc.la.gov

Timelines

Outreach and Marketing of Program to Lenders May 5
Notice of Funding Availability

May 15

NOFA FAQ’s Published   June 9
Application Intake Deadline August 16
Commitment Letters Issued Continuously After This Date on a First Come First Served Basis July 3 

 

Webinar for Questions and Answers:

Date Time Call in Number Link Archive
6/1/2017 3:00PM-4:00PM CST 1-605-475-5613 Passcode 700520 https://louisianahousingcorp.globalmeet.com/SustainableHousing  
6/8/2017 3:00PM-4:00PM CST TBD TBD  

 

 

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