CDBG: Rental Rehab projects provide owners of buildings at risk in the downtown Renaissance area with grant funds for the elimination of blight and to address health and safety issues. The projects are funded through the US Housing and Urban Develoment's (HUD) Community Development Block Grant program (CDBG). These grants have to be applied for and funding cycles vary. Please contact the Planning Department at (270) 444-8690 to find out if your project is eligible and to find out the status of these funds.
Grant funds are provided to eligible property owners who voluntarily participate in this project. Funds are provided as a five-year declining balance mortgage with a due on sale or transfer clause. CDBG funds will be offered on a dollar for dollar basis to address the rehab costs per building address, and owners will contribute an equity investment equal to the grant amount for the rehab costs.
HOME (KHC): This type of project enables downtown property owners to renovate upper floor space and make them available for rent at an affordable rate to low-to-moderate income persons for a period of time. (10-15 years)
Rehabilitation is jointly funded with grant funds and private conventional finance. Local lenders have agreed in the past to waive fees and grant below market rates as support for these types of projects. HOME dollars will be awarded with private dollars for a deferred payment loan with no payback unless the investor/owner defaults on his or her requirements. Requirements will include a period of affordability secured with a second mortgage, rent limitations based on HOME and Fair Market Rents for McCracken County, and income limits for perspective tenants.