Click on any down arrow to find questions answered in each of the four categories.
My property is currently vacant. Can I still apply for the RIF?
For Loan Option 1, unoccupied properties must have an active rental license in order to be eligible.
My property is tenant occupied but doesn’t have a rental license. Can I still apply for the RIF?
Yes, properties that are currently occupied by tenants are eligible for a loan even without an active rental license, so long as the loan proceeds will be used to address the issues that prevent a successful rental license application (lead remediation, code violations).
A rental license must be obtained as soon as RIF-funded repairs are complete and must be maintained for the duration of the loan term.
Is there a landlord income requirement for the RIF?
No. There is no income requirement for landlords
Are corporate entities like LLCs eligible for RIF loans?
Landlords may apply for RIF loans to repair properties that are legally owned by an LLC or other corporate entity. Landlords must meet the eligibility requirements as an individual, including full or partial ownership of fewer than five properties/15 units. Copies of the certificate of organization or articles of incorporation are required as part of the application.
Does renting a room in my primary residence count as being a landlord?
Renting a room to someone does not qualify you as a landlord eligible for the RIF. However, you may live in the property to be repaired, as long as the property has at least one other housing unit that is rented (for example, a duplex).
What kinds of repairs can be paid for with RIF loans?
RIF loans may only be used to repair the specific rental unit for which you apply. Repairs must address habitability concerns, improve energy or water efficiency, or make units accessible for individuals with disabilities. Repairs that are covered include, but are not limited to:
- Asbestos, mold, and lead remediation
- Electrical and plumbing improvements
- Energy audit and weatherization improvements
- Fire alarm and sprinkler system installation or upgrades
- Heating and cooling system repairs and upgrades
- Improvements to carpeting and flooring
- Pest control
- Roof repair or replacement
- Structural repairs
RIF does NOT allow applicants to use the loan to finish basements, split up the property into additional rental units, add a new deck or porch, add an addition, or construct a new driveway.
Am I required to spend any of my funds?
It is common for home repair costs (including soft costs like permits and drawings) to exceed the original cost estimate. Therefore, the RIF requires an additional 20% of the estimated project cost to be set aside to cover possible cost overruns. This can be achieved one of two ways:
- RIF borrowers can set aside 20% of the loan to cover potential cost overruns. That would mean the repair cost estimate should not exceed 80% of the maximum loan amount. For example, for a $25K/10Y loan, the repair cost estimate should be no more than $20,825 so that $4,165 can be set aside within the loan for contingencies.
- RIF borrowers can use some of their own money to start the repair work, and the RIF loan will cover the rest, up to the total loan amount. For this option, applicants will need to provide proof that they have funds on hand to cover at least 20% of the project cost upfront as part of their RIF application.
Does PHDC have contractors who will determine what repairs are needed and complete the repair work?
No. You must hire your own contractor. Any contractor who is licensed and insured can be hired to do repair work with a RIF loan.
Will PHDC help me choose a contractor?
PHDC does not provide contractor information or recommendations. You will learn about how to choose a reputable licensed contractor in the landlord education session. You can find a list of licensed contractors on the City website at https://li.phila.gov/Contractor-Lookup/ Choosing a licensed and insured contractor will be your responsibility.
Is a general contractor required for RIF projects?
No. Hiring a general contractor is recommended, but not required, for RIF projects. If you have experience managing repair projects, you can choose to hire subcontractors directly and coordinate the work yourself. You will be required to submit proof of current licensure and insurance for all subcontractors.
How does loan forgiveness ($25K/10Y) work?
For Loan Option ($25K/10Y), all loan payments are deferred and the loan principal and interest are ultimately forgiven as long as the conditions below are met during the loan term.
Loan deferment, forgiveness, and/or 0% interest rate requirements:
- Annual rent increase can be no more than 3%, unless the landlord leases to a tenant with a Housing Choice Voucher (HCV). Landlords with HCV tenants can continue to request rent increases through PHA.
- Three-year good cause eviction protection for current tenant(s).
- Any L&I violations must be corrected within six months throughout the loan term.
- Maintain a valid rental license and property insurance.
If the above are not met or the property is sold, the remaining principal on the loan must be repaid to PHDC at 4% interest.
In a multi-unit building, are all units subject to the affordability requirements?
All units that are receiving the benefit of the proposed repairs are subject to the affordability requirements.
If repairs are taking place only within a specific unit (i.e. bathroom upgrades, flooring replacement), then only that unit would be subject to affordability requirements. However, for building-wide repairs like roofing, electrical upgrades, or improvements to common areas, ALL units in the building will be subject to the affordability requirements.
Do tenants have to be using Housing Choice Vouchers (HCVs, also known as Section 8)?
No. The unit rent must meet the affordable rent requirement, but it does not have to be paid through voucher. However, landlords who rent to tenants with an HCV are eligible and encouraged to apply for RIF loans. HCV units are not subject to the affordable rent limits and landlords can continue to request rent increases through PHA.
How do I apply for a RIF loan?
To begin the application process, the first step is to attend our information session to learn more about the program, repair project management, and working with contractors. Sign up for a session at https://rental-improvement.phdcphila.org/#/EducationSessions
Next, gather the documents you will need:
- Current lease for unit(s) to be repaired.
- Notice to Tenant Form signed by you and the tenant(s) living in the unit(s) to be repaired. Download a copy here.
- Scope of work with itemized cost estimate for repairs from a licensed contractor, if available. If you do not have a scope of work, you can still apply but your application will not be considered complete until you have submitted a cost estimate from a licensed contractor.
- Bank statement proving you can cover 20% contingency costs, if the repair cost is more than 80% of the maximum loan amount).
Where can I get help with the application?
The Rental Improvement Team at PHDC is available via email and phone to answer questions about the program and application process. A PHDC staff person will be assigned to help you navigate the program as soon as you submit the online application. Since we may reach out by email, check your inbox and spam or junk folder regularly after your submission. Neighborhood Advisory Committees (NACs) can also provide computer access and assistance with the online application.
Contact PHDC with questions about the program, by emailing [email protected] or calling 215-448-3006.
Where can I get help with the permitting process?
The Philadelphia Permit Navigator is a simple method for determining what type of permit(s) you need for your repair project. Go to https://permits.phila.gov/ select the Residential Portal option, and answer the quiz questions to get your result. There is also a form to request email assistance from City staff.