HOUSING PRESERVATION LOAN FUND

The Housing Preservation Loan Fund provides a comprehensive approach to financing the preservation of Hartford’s housing stock and the revitalization of its neighborhoods. Administered by the City’s Department of Housing and Community Development and funded by Community Development Block Grants from the federal government, the Housing Preservation Loan Fund provides low interest loans that are designed to encourage property owners to fix-up their properties and, thereby increase the supply of decent housing for lower and moderate income people. In addition to direct low-interest rate loans from the Fund, alternative financing sources are utilized to expand the involvement of the private financial market in the preservation of Hartford’s neighborhoods.

Eligibility

- Basic eligibility for a loan from the Housing Preservation Loan Fund in determined by:

• The income of the owner or the affordability of the rental units for lower and moderate income tenants.

- Owners of 1-4 unit buildings whose income is within federally defined program limits may qualify for loans up to $20,000 at reduced rates of interest (3% or 6%).

- Low income owner-occupants of 1-4 unit buildings may be eligible for a deferred loan up to a maximum of $7,500.

- Owner-occupants of 1-4 family unit buildings where incomes are not within federally defined limits (HUD Section 235 or Section 8), non-owner occupants 1-4 unit buildings and owner of multi-family buildings may qualify for loans only if the majority of their tenants have lower or moderate income, or, if the building is vacant, after rehabilitation it must be occupied by low and moderate income tenants.

-  Owners must, in most cases, agree to limited rental increases in at least 51% of the dwelling units that will maintain their affordability to lower and moderate income households.

Direct loans and loans offered in combination with private sector financing are available at interest rates that may range from 1% to 6% depending upon each applicant’s eligibility.

Loan amounts, rates and terms are shown below.

Type of Improvements

Loans are available to make the following types of repairs or improvements on a priority basis.

• Housing or Building Code Violations, including evidence of lead base paint
• Energy conservation measures
• Handicapped accessibility
• General property improvements not to exceed 25% of the total costs

Examples of eligible activities are:

• Exterior work to help preserve or protect structure, such as painting, roofing, and siding.
• Interior work to make a structure more livable, such as painting and plastering.
• Repairs, restoration or replacement of heating systems, plumbing systems, electrical wiring, structural repairs.

For More Information

Call 860 757-9005 or stop in at the
Department of Housing and
Community Development
250 Constitution Plaza 
Hartford, Connecticut 06103