RIF Frequently Asked Questions

My property is currently vacant. Can I still apply for the RIF?

Yes, you can apply, since current occupancy is not part of the eligibility criteria. However, all properties must have an active rental license before the final loan draw and must be occupied by tenants within one year of competing RIF-funded repairs.

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. If a rental license cannot be obtained at the time of the loan application, one 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 for 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(s) 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. Additionally, RIF funds cannot be used for improvements to owner-occupied units or non-residential (commercial) spaces.

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, RIF requires an additional 20% of the estimated project cost to be set aside to cover possible cost overruns. For example, for a minor repair loan, the repair cost estimate should be no more than $20,800 so that $4,200 can be set aside within the loan for contingencies.

Does PHDC have contractors who will determine what repairs are needed and complete the repair work?

No. You must select and hire your own contractor. Any contractor who is licensed in the city of Philadelphia 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 work?

For both Loan Options (Minor Repair/10 Year and Moderate Repair/15 Year), 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 and forgiveness 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 requirements are not met or the property is sold, the remaining principal on the loan must be repaid to PHDC at 6% 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. 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.
• Your past three mortgage statements.
• Your most recent tax return.

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 RentalImprove@phila.gov 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.