Small Rental Rehabilitation Program

• Your property has 1–4 rental units and sustained unrepaired damage from Hurricane Helene (September 27, 2024).
• The property is located in a HUD- or State-designated Most Impacted and Distressed (MID) county.
• Units are VACANT at the time of application (no evictions to qualify).
• You owned the property at the time of the storm and still own it (priority).
• All owners must be U.S. citizens or legal permanent residents.
• You are current on property taxes or on an approved payment plan, and loan obligations, including mortgages, are current.
• You are not subject to bankruptcy proceedings.
• You agree to lease assisted units to income-eligible households at restricted rents for 10 years.

Due to capped resources, priority will be assigned based on one of the following:

• Applicants who owned the property at the time of Helene.
• Applicants with properties located within a HUD MID area.
• Applicants whose property sustained damage from Hurricane Helene.
• Applicants whose property is located outside of the Special Flood Hazard Area (SFHA).

• Federal assistance serves only to supplement insurance and other forms of disaster assistance (Robert T. Stafford Act).
• Duplication of Benefits occurs when a person, household, or other entity receives financial assistance from multiple sources for the same purpose.

The purpose of the damage assessment phase of the application process is to:

• Confirm the presence of remaining, unrepaired storm damage resulting from Hurricane Helene.
• Complete the Tier 2 Environmental Review checklist in compliance with 24 CFR Part 58.
• Prepare a preliminary Estimated Cost of Repair (ECR) and Damage Repair Verification (DRV).
• Verify environmental mitigation requirements such as lead-based paint (LBP) stabilization or abatement, asbestos testing, radon testing, or elevation requirements.

• Each case will be reviewed to determine potential to impact the environment in accordance with federal, state, and local requirements.
• The program conducts an environmental review prior to issuing any award to ensure proposed activities do not have an adverse environmental or health effect on end users.
• Issues identified during environmental review may be mitigated before or after the construction process, if feasible.
• Properties with extraordinary site conditions may be deemed ineligible for assistance.

The formula below describes how the program will calculate an award:

1. Identify Estimated Cost of Repair (ECR).
2. Identify all potentially duplicative assistance (DOB).
3. Deduct assistance determined to be duplicative (DOB).
4. Apply applicable award cap based on number of units being served in the application.
5. Identify pre-storm market value from the applicant's County records or other applicable source.
6. Compare Determined Award Value to pre-storm market value to determine award type.

Note: Applicants found to have a Duplication of Benefits Gap (DOB Gap) will be given the option to return unused assistance to the program, if the total DOB Gap is less than the award amount.

• Rehabilitation
• Reconstruction
• Manufactured Housing Unit (MHU) Replacement

Key activities of pre-construction include:

• General contractor assignment
• Survey and design
• Cost estimate
• Pre-construction meeting
• Permitting
• Utility disconnection

Key activities of the construction process include:

• Program-assigned General Contractors will execute the approved cost estimate.
• All construction work must be approved via an approved cost estimate or duly authorized change order.
• Construction activities are subject to the award cap.
• Construction will be completed using standard, builder-grade materials, regardless of pre-existing materials.
  • Applicant request for upgrades or modifications will not be considered.

During the compliance period:

• Income certification and third-party verification must be completed at initial lease-up and annually thereafter.
• Income verification must be based on source documentation, such as pay stubs, tax returns, or benefits statements, and may not rely on self-certification.
• Complete accurate rent rolls and tenant income documentation must be maintained.
• Maintaining the property as an affordable rental property for a minimum 10-year affordability period.
• During the affordability period, all leases executed for the program-assisted units must include a program-approved lease addendum.
• All units assisted by the program must be leased to tenants with household incomes at or below 80% of the Area Median Income (AMI) for a minimum duration of the 10-year compliance period.
• Rents charged by applicants may not exceed the High HOME Rent Limits as defined by HUD throughout the compliance period.
• All leasing and occupancy practices must comply with HUD Fair Housing and Equal Opportunity (FHEO) requirements.
• In the event of a sale or transfer during the affordability period, the use restrictions and applicable warranties must transfer with the property through a recorded deed restriction, land use covenant, or other HUD-approved mechanism.
• Use restrictions must remain in place regardless of transfer, refinance, or payoff, unless released through foreclosure or transfer in lieu of foreclosure.
• Owners must submit annual compliance reports to DCR demonstrating adherence to program terms, including occupancy, rent, and income eligibility.
• The program will conduct annual monitoring. If the applicant is found out of compliance, the program will issue a written notice of deficiency, allowing 30 calendar days to cure the violation.