Purpose

To assist the revitalization of older commercial buildings in neighborhoods. Low-interest loans are made for property and site improvements.

Eligible Areas

Commercial areas where the City and the neighborhood are working together to revitalize the area. The area must have specific design standards and have an existing merchants' association. In certain cases, we can work with the area and help create general goals that are consistent with this program.

Eligible Borrowers

• Property owners.
• Tenants with written leases and permission in writing from the owner to make the improvements.

Eligible Projects

• Exterior improvements that comply with the adopted design standards, roof repair, and structural improvements to walls and foundations.
• Landscaping that enhances the building and complies with the design standards developed for the area.
• Site improvements.
  
• Interior improvements.

Maximum Loan

• Total Loan: 50% of total improvement costs, not to exceed $15,000 per
  project. (Each individual commercial unit may be a separate project.)
• Exterior improvements, landscaping, and site improvements: up to 100% of total loan amount with owner/tenant providing matching amount.
• Interior improvements: up to 50% of total loan amount. The loan cannot exceed the exterior loan and is subject to the owner/tenant match.

Terms

• Up to 7 years. Term cannot exceed remaining term of the lease for lessees.
• 3% interest rate.

Collateral

Typically, a subordinate mortgage position or other adequate collateral.

Process

The merchants' association prepares and adopts a neighborhood development plan including design standards. The borrower submits a loan application for the improvement to the City. Applications must be in conformance with the neighborhood plan and program regulations or, following review by us, meet the goals and objectives of the City's Neighborhood Conservation and Renewal Program.

For additional information, please e-mail OED@dmgov.org or call (515) 283-4004.