About the Rental Improvement Fund
Impact Loan Fund and the City of Philadelphia have launched a pilot program to finance repairs and renovations for landlords to improve apartments for affordable rentals. Landlords who have issues with lead paint and L&I violations are eligible to bring properties back on line.
The Rental Improvement Fund (RIF) will lend to landlords who own fewer than 10 apartments in the City of Philadelphia, and who need to improve their units to address health and safety-related repairs. Other upgrades are allowed as long as code requirements are addressed. In return, landlords will maintain affordable rents for 10 years, meet fair housing guidelines, and permit L&I inspections during the term of the loan.
- Landlords who own fewer than 10 rental units
- Loan amount from $10,000 up to $24,999
- Improvements that result in a rental unit leased at affordable rates for 10 years
- Up to a 10 year loan term
- Up to 25 year amortization schedule
- Application Fee: $150
- Origination Fee: 2% of loan amount
- Legal Fee: $250 (if using form docs)
- Lenders Title Insurance and Recording Fees
- Inspection Fees apply ($350 initial inspection, $250 each draw inspection)
- Credit check fee ($25) applies to additional guarantors
- Amortization schedule to achieve a 75% LTV within 5 years based on available cashflow
- Draw period of 3 months to complete improvements
- 15% minimum equity in property. Additional cash may not be required.
- Cashflow from estimated leases rates to cover debt service at 1.15x-1.25x
- Transaction costs must be paid out of pocked. Funds are disbursed as work is completed (no cash advances)
- First or Second lien on the property up to 85% LTV
- Lender’s Title Insurance
- Personal guarantee of borrower and spouse, if applicable
- Insurance in place
- Maintain renters’ license
- Real Estate Taxes paid and current
- Improvements to address L&I violations and lead paint mitigation
- Participation in a Fair Housing Training program
To apply, fill out the intake application below and we will follow up with a phone call.