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Rental Housing Rehabilitation Program

The Lancaster County Rental Housing Rehabilitation Program (the Program) is
available to provide owners of rental residential properties in Lancaster County
financial assistance to rehabilitate their properties. In exchange, property owners are
required to rent to low- and moderate-income tenants for at least ten (10) years or
the term of financial assistance.

The ultimate goal of the program is to assure that tenants are provided with decent,
safe and sanitary living environments at an affordable rent.

More Information and Application

Contact

Justin Eby
Director, Housing & Community Development
Phone Ext 225
Email
Micheala Allwine
Housing Manager
Email

Project Eligibility

In order to qualify for assistance through the Rental Housing Rehabilitation Program:

  • The property to be rehabilitated must be located in Lancaster County, outside
    the City of Lancaster.
  • The property to be rehabilitated must be a permanent structure available for
    rent on a year-round basis.
  • Mixed-use properties (commercial and residential) are eligible for
    assistance as long as the commercial use is compatible with the
    residential use. Assistance is only provided for the rehabilitation of the
    residential portions of the property.
  • Properties where the owner occupies one of the units are eligible for
    assistance as long as the assistance is only provided for the rehabilitation
    of the rental units.
  • Mixed-income properties (renting to tenants with incomes in excess of
    80% Median Family Income (MFI) as well as tenants that are under 80%
    MFI are eligible as long as the assistance through this program is
    targeted to those units that are income eligible.
  • Conversion of a vacant commercial building into rental housing under
    this program is permitted. Mobile homes are not eligible for assistance
    through the Program. Conversion of existing single family homes into two
    or more units is not eligible for assistance through the Program.
  • The property to be rehabilitated must have major building systems that are in need of replacement or that fail to meet applicable building codes and standards of the municipality in which they are located. The average rehabilitation cost must be at least $5,000 per residential unit.
  • The property must have seven (7) or fewer units. Properties with four (4) or fewer units can be processed more quickly than those with more units due to environmental review requirements. The minimum number of units to be rehabilitated through the program, per property, is two (2).
  • If the property to be rehabilitated is occupied at the time of application submission, at least 51% of the tenants must be considered to be low- or moderate-income as determined annually by the U.S. Department of Housing and Urban Development (HUD) and rents must be equal to or less than Fair Market Rents (FMR) as determined annually by HUD. All FMRs includes utilities paid by tenant per Utility Allowance schedules in effect.
  • The applicant must be the owner of record of the property to be rehabilitated. Or, the applicant must have the property under control through a valid Agreement of Sale (the applicant must take ownership of the property prior to the rehabilitation loan settlement). Financing is not available for properties being purchased through a Lease/Purchase Agreement.
  • All relevant taxes for the property must be current.
  • The owner of record may be an individual or individuals, corporation, partnership or nonprofit organization. The owner of record, including the principals of a corporation, may not have a history of code violations in any municipality in Lancaster County.
  • In order to comply with the Federal Uniform Relocation Act, notifications concerning the rehabilitation of rental units and the possibility of relocation must be sent to all tenants in the property considered for rehabilitation. It is not the intent of the Program to require tenants to relocate (displaced to another dwelling unit during the rehabilitation of their unit) and that such event may result in the disqualification of the unit from the Program. However, if all parties involved agree that displacement is necessary, all associated costs shall be in accordance with the Federal Uniform Relocation Act and shall be the sole responsibility of the property owner. NOTE: Property owners cannot elect to not renew a lease or evict a resident due to upcoming rehabilitation work, this would constitute.