Second Notice to Landlords re: Loans and Grants

June 11, 2007
The Road Home Small Rental Property Program Round 2
The Louisiana Loan Fund

Dear Section 8 Landlords:

As part of our continuing commitment to landlord outreach, we would like to make you aware of two new loan programs directed towards creating more affordable housing in the region Although the Housing Program will not be directly involved in the administration of these programs, we felt it was important for you to have this information.

The Road Home Small Rental Property Program Round 2
The Road Home Small Rental Property Program offers incentives for small-scale rental property owners, owner occupants of three- and four-unit buildings, and nonprofit organizations in the form of forgivable loans. The proceeds of the forgivable loan may be used at the borrower’s discretion, without restriction, as long as conditions for receiving the loan are met.

Participating property owners will be required to accept limits on the rents they charge and the incomes of the tenants they select. The amount of financing will be provided in three tiers based on the income level of the tenants to be served. The highest amount of funding per unit will be available to property owners who agree to offer the lowest rents. Awards are offered as no interest, no payment, forgivable loans, due only upon resale of the property or failure to comply with the rent restrictions and household incomes.

Road Home program officials just announced the second round of funding through The Small Rental Property program. Through this round up to $300 million will be made available to encourage property owners to restore much needed rental housing and to commit to make that housing affordable. This second round comes on the heels of the first round, which funded over $202 million to help revive more than 5,000 rental units in 13 parishes.

The new round will continue to place the highest priority on owner occupants of three and four unit properties followed by other small rental owners whose buildings suffered significant damage from Hurricane Katrina or Rita. This round will also be open to middle size rental owners (those who own between 21 and 100 units) and new owners (those Louisiana residents who have purchased property since the storms) if funding is available after the priority groups. As in Round One, there will also be a 5% set aside for non-profits focused on providing longer term affordability and targeting units to those households with special needs.

The program will continue to be limited to small rental buildings between one and four units. However, partially occupied buildings will now be eligible for funding as well as vacant buildings. Round 2 will remain open until July 5, 2007 for both general and nonprofit organization applications and offers an easy-to-use online application submission.

To be eligible for Round 2, applicants must own a one- to four-unit rental property located in one of the 13 parishes hardest hit by the storms: Acadia, Calcasieu, Cameron, Iberia, Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany, Tangipahoa, Terrebonne, Vermilion or Washington. All eligibility criteria can be found online at or by calling The Road Home call center at 1.888.ROAD.2.LA (1.888.762.3252).

Property owners with up to 100 rental units at the time of the storms, nonprofit organizations, and owner-occupied three- and four-unit property owners can apply to Round 2 by printing or submitting an application online at Paper applications can be printed online or requested by calling 1.888.ROAD.2.LA. Paper applications should be mailed to P.O. Box 4729, Baton Rouge, LA 70821-1182. Applicants who were not awarded in Round 1 but met basic eligibility requirements are strongly encouraged to reapply.

The Louisiana Loan Fund
The Louisiana Loan Fund provides resources to residents and developers of affordable and mixed-income housing to build new housing or repair home and apartment buildings that were lost or severely damaged due to Hurricanes Katrina and Rita. The Fund is being jointly managed by Enterprise Community Partners (Enterprise) and the Local Initiatives Support Corporation (LISC), the nation’s two largest community development organizations.

Through the Fund, eligible applicants may borrow up to $200,000 for Early Predevelopment expenses necessary for initial project feasibility and up to $3 million for Acquisition/Predevelopment financing to purchase properties and complete predevelopment activities prior to construction closing.

The loans, at below market rates, are available to nonprofit and for profit developers of quality, affordable and mixed income housing primarily in Calcasieu, Cameron, Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany and Vermillion parishes. More than half of the homes and apartments must be affordable to households with incomes below 80 percent of the Area Median Income. The loans will be limited to work in Louisiana’s GOZone-designated parishes.

For more information and an application, you can go online to or contact Christine Robertson of the Local Initiatives Support Corporation at (225) 924-3353, or Lori Chatman of Enterprise Community Partners at (888) 386-3674.

Bobbie Robinson
Programs Administrator

Tracy Robinson
Special Projects Coordinator

Author: admin