Program Description

As maintenance and repair needs grow among Philadelphia’s aging rental housing stock, PHDC is committed to ensuring that small landlords can access capital to
make much-needed repairs while maintaining reasonable rents. PHDC’s Rental Improvement Fund (RIF) offers two loan products to small landlords to repair their rental properties. Loans are eligible for full forgiveness or a preferable 0% interest rate if landlords meet program affordability requirements during the loan term.

Which landlords and properties are eligible?

  • Landlords who own no more than 15 rental units across no more than 5 rental properties. This total includes rental properties owned by individuals and associated LLCs inside and outside of Philadelphia.
  • Landlords must be able to produce a tax compliance certificate.
  • Units where the current rent is affordable to households earning at or under 60% AMI (see rent guidelines chart below)
  • Occupied properties do not need a rental license if repair issues currently prevent the property from obtaining one.
  •  Vacant properties must have a rental license
  • Properties must be able to comply with the building code after RIF-funded repairs are complete, which means the cost of all essential repairs must fit within the RIF loan amount.

Maximum current rent for all units that will benefit from RIF repairs

Maximum Monthly Rent by Number of Bedrooms
0 (Studio)123456

What repairs are eligible?

RIF cannot cover the cost of repairs completed before the loan is closed. All repair work must be done by a licensed and insured contractor. Loan proceeds can be used for any repair that addresses a safety, health, habitability, energy or water efficiency, concern. Examples of repairs that are covered include (but not limited to):

  • New and repaired roofs, windows, doors
  • Repairs to deteriorated walls, floors and ceilings
  • Asbestos, mold, and lead remediation
  • Electrical and plumbing improvements
  • Heating and cooling systems, and energy efficiency upgrades

Loan Products

RIF will lend a maximum of $100,000 to a single landlord.

Loan Product 1: $25K/10Y

  • Loan amount: $10,000-$24,999 per property
  • Loan term: 10 years
  • Forgiveness schedule: The loan will be forgiven 20% annually beginning in Year 6 if conditions are met.
  • Interest Rate: 4% if affordability requirements are not met
  • Unoccupied rental properties must have an active rental license.

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Loan Product 2: $50K/15Y

  • Loan amount: Up to $50,000 for one-unit properties; Up to $100,000 for multi-unit properties
  • Loan term: 15 years
  • Interest Rate: 0% if affordability requirements are met, 4% if not
  • Monthly payment will start in Year 2.
  • Loan underwriting: Properties must have a Debt Service Coverage Ratio above 1.2
  • Unoccupied rental properties must have an active rental license or one that expired within the last two years.

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Application Process

Read the

Gather required application materials.
In addition to repair estimates and
current leases, you’ll need the
following RIF forms:

This form only for $50k/15Y

At any point in the process:

Download the PHDC Rental Improvement Fund flyer English and Spanish

Phone: 215-448-3006