HURRICANE HELENE RECOVERY
Frequently Asked Questions
Small Rental Rehabilitation Program
General Questions
Can I choose my contractor?
No. The Program assigns qualified contractors and manages construction.
Do units need to be vacant to apply?
Yes. Units must be vacant at application and remain vacant until construction is complete. Evictions to qualify are prohibited.
Is assistance a loan or a grant?
Assistance is provided as a grant with a 10 year affordability period and recorded use restrictions. Repayment may be required if you violate the affordability terms.
What about rent limits?
Upon completion of construction, all Small-Rental assisted units must rent to Low-to-Moderate persons and comply with High HOME Rent limits published by HUD.
Are Section 8 properties eligible?
Yes, Section 8 properties are eligible.
Are properties becoming vacant because of leases naturally ending acceptable in this program?
Yes, but we reserve the right to contact the tenant to verify circumstances with the tenant. If there is any indication the lease is ending for the purposes of applying to the program, Renew NC reserves the right to deem property ineligible.
If an applicant is married and their spouse is permanently absent from the household, will the absent spouse’s income be excluded from total household income if documentation shows the spouse maintains a separate residence?
Property Owners and their household income is not taken into consideration in the Small Rental Rehabilitation Program. Once assisted properties enter the affordability period; after rehabilitation, reconstruction or replacement, tenant income will have to meet the LMI criteria during the affordability Training will be available to assist property owners successfully meet the requirements surrounding the affordability requirements.
Can you address Month-to-Month, mid-term leases, re-leasing and evictions for cause?
The property must be used as year-round rental housing and may not be used as a second home or for seasonal rentals. If a lease ends due to an eviction for cause or because the tenant breaks the lease, the property owner must re-lease the unit to another household that meets the LMI requirements for the remainder of the affordability/compliance period. Evictions for cause are permitted, but they must be documented. Renew NC must be notified in advance, and the owner must follow the eviction process required by the property’s jurisdiction.
Would the program consider repair/ reconstruction of tenant occupied properties?
The vacancy requirement is intended to maximize the portion of the Program’s $57.4 million budget that is directed to construction activities. This helps the Program serve more applicants and create more affordable housing units across North Carolina.
If an owner has a spouse, is the spouse required to be a US citizen as well?
Yes. All property owners and their spouses are required to be US citizens or legal permanent residents to participate in this program.
Can Applicants get help if they are behind in their property taxes?
Property taxes must be current to participate in the Small Rental Rehabilitation Program. However, Renew NC can assist applicants in coordinating with local agencies to explore plans and available resources to bring taxes up to date/or in good standing.
Will there be similar outreach for the Small Rental Rehabilitation Program as there was for the Single-Family Housing Program?
Outreach for the Small Rental Rehabilitation Program will differ from the Single-Family Housing Program because it targets small landlords rather than homeowners. As a result, there will be no door-to-door (door-knocking) campaign. Instead, outreach will focus on presentations and training sessions, engagement with local stakeholders, and program advertising to ensure broad awareness.
What type of success has similar programs had in eastern North Carolina?
Several other HUD grantees have implemented Small Rental Rehabilitation Programs. While a Small Rental program was not implemented in eastern North Carolina, states such as Mississippi and Kentucky have operated similar programs. Based on our discussions with those grantees, their programs have been successful. Funds were fully expended, and participating landlords were able to meet the long-term compliance requirements. This is a program the state strongly encourages landlords to consider.
Is 80% AMI limit on tenant household income applied for all 10 years of the program?
Yes.
Are there any limits on what landlords can charge as far as security deposits, pet fees, etc. if they fall within the North Carolina legal statutes?
We are currently using the HUD High Home rent rates.
Is there an application window for this program?
There is currently no scheduled application window for this program. Should an application deadline be imposed, Renew NC will ensure that deadline is well communicated in our social media channels and by press release.
Is this program open to those not directly affected by the hurricane?
In order to qualify, the property itself must have had damage from the storm. However, priority will be given to property owners who owned the damaged property at the time of the storm.
What are the maximum number of units a Property Owner can apply for?
A maximum of 8 rental units with no more than 4 units per parcel will be allowed per Property Owner. Only one parcel can be associated with an application, however, that parcel can have up to 4 units. To ensure fair distribution of Program resources, a second application from the same named property owner will not be eligible for assistance until all first applications from each property owner is reviewed/awarded.