Repair program to stabilize Philly’s affordable housing

A new citywide program is expected to help hundreds of small landlords in Philadelphia make needed repairs to their properties while keeping the units affordable to tenants amid rising rents.

The Rental Improvement Fund offers two types of loans — 10-year forgivable loans of up to $24,999 per property and 15-year 0% interest loans of up to $50,000 per unit.

Under the $9 million program, the maximum loan for a single landlord is $100,000.

Participants can use the money to repair roofs, windows, and doors. They can also use it for asbestos, mold and lead remediation, as well as electrical and plumbing improvements, among other repairs.

“The pandemic is in the rearview mirror maybe, but we’re still living with inflation and skyrocketing construction costs. And we know that mom-and-pop landlords have been really struggling. And if we let them go under, the affordable housing goes under and families go under,” said City Councilmember Jamie Gauthier during a news conference on Wednesday.

To qualify for the program, landlords must own no more than five rental properties and no more than 15 rental units. They must also have a valid rental license and property insurance; be current or in a payment agreement for city taxes; and have a tax compliance certificate.

The only exception is if the loan will be used to address repair issues that are currently preventing the landlord from securing a rental license and/or insurance for a property.

Under the program, landlords cannot raise monthly rents by more than 3% each year, unless they are leasing to a tenant with a Housing Choice Voucher, a rental subsidy for people with very low incomes.