Detailed Loan Terms

Do I have to pay the loan back?

For the $25K/10Y loan, loan repayment will be deferred and the loan will be fully forgiven if the affordability requirements below are met. Deferral means you do not have to make any payments on the loan.

In order for repayment to be deferred and for the loan to be forgiven, PHDC will request a copy of the current lease for the repaired unit(s) on an annual basis and review City records to ensure the following requirements are met:

• Any rent increase cannot be more than 3%, unless you lease to a tenant using a Housing Choice Voucher (HCV), in which case the landlord can continue to request rent increases from the Philadelphia Housing Authority (PHA).
• You must provide a current lease for the repaired unit(s) each year.
• The property must have any code violations identified by the Department of Licenses & Inspections (L&I) corrected within six months during the loan term.
• You must maintain an active rental license during the loan term.
• You must continue to own the unit(s) during the loan term.

How do I apply for loan forgiveness for the $25K/10Y loan?

You must apply to be considered for loan forgiveness annually by submitting a copy of the lease and a rent certification form for any units repaired with RIF loan funds. PHDC will also review City records to confirm your L&I violation history, rental license status, and property ownership records. If you do not apply for or meet the requirements for loan forgiveness each year, you will have to repay the unforgiven portion of the loan at 6% interest.

Are there early repayment (prepayment) penalties for Loan Option 1?

If you take out a $25K/10Y RIF loan and choose to fully repay it during the first three years of the loan term, you will pay a penalty. The penalty schedule for Loan Option 1 is:

My property is currently vacant. Can I still apply for Loan Option 1?

For Loan Option 1, unoccupied properties must have an active rental license in order to be eligible for a loan.