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Housing Choice Voucher Program
Rental Rehabilitation Loan Program
Rental property owners in Dakota County can participate in the
Housing Choice Voucher Program (also
known as Section 8) by providing affordable, safe and adequate
housing for Voucher Program participants.
How can I participate in the Voucher Program?
- Market to Prospects who have a Voucher
When advertising, add “Vouchers Accepted” to your advertisement. The CDA can also assist you by advertising your vacancy for free in our weekly vacancy listing that is available in the CDA’s lobby and on our Web site. To list a vacancy with the CDA, call (651) 675-4403 or fax a completed Vacancy Listing Form to the CDA at (651) 675-4444. You can view vacancies by clicking here.
Since the Voucher Program is tenant-based, your ability to participate is dependent on your unit being selected by a voucher-assisted tenant. There is no separate pre-qualification process for an owner or rental unit. Approval of your unit by the CDA is initiated through a unit-specific request by a voucher holder.
- Screen Prospective Renter
Property owners and managers
are responsible for screening renters for credit, rental and
criminal history. The CDA does not screen program participants
for suitability as a prospective renter.
- Complete Request for Tenancy Approval (RTA) Form
The
voucher holder will have this form and will request that you complete
it and return it to the CDA once you have accepted them as a renter.
On the RTA form you will list the rent amount, mailing address
for payment, address of the unit, utilities that are included with
rent, etc.
How much can I charge for rent?
You should research what
comparable units are generating for rent in the private market.
The CDA
cannot approve a rent that exceeds what comparable unassisted units in the market receive. The tenant is eligible for a maximum subsidy, based on household income and the applicable CDA payment standards.
The maximum assistance a household is eligible to receive is equal to the difference between 30% of a household’s monthly adjusted income and the applicable payment standard for their voucher size. The tenant must pay the difference between the maximum subsidy and the rent you are charging. Therefore, affordability may become an issue for the tenant if the rent you charge is above the payment standard. Under the Voucher Program, a renter is prohibited from leasing a unit where their portion of rent exceeds 40% of their monthly adjusted income
- CDA Inspection
All rental units assisted through
the Housing Choice Voucher Program must pass a Housing
Quality Standards Inspection.
Upon receiving a Request for Tenancy Approval for your unit, the CDA will arrange for an inspection of the rental unit.
- Signing of Program Contracts
You will receive
a Housing Assistance Payments (HAP) Contract in the mail that shows the tenant’s and the CDA’s monthly payment obligation. Once you have signed and returned the HAP Contract and provided a copy of an executed lease with the tenant, the CDA will start sending a check for its portion directly to you on the 1 st of each month. (If you have not done business with the CDA in the past year, you will be required to submit the IRS Form W-9 before a payment can be issued.) You are responsible for collecting the tenant’s portion of the monthly rent.
For more information on how to participate in the Housing Choice Voucher Program, contact Naomi Hrncir at (651) 675-4543.
The Rental Rehabilitation Loan Program was created to provide an additional financial tool for owners of affordable rental housing in Dakota County to improve the safety, integrity, accessibility and curbside appeal of their property. By upgrading existing rental housing, the program will stimulate further reinvestment in the surrounding neighborhoods.
Eligible Rehabilitation Improvements
- Compliance with state, county, or municipal health, housing, building, fire and housing maintenance codes and quality standards.
- Curbside appeal and property livability.
- Garage and parking facilities.
- Accessibility improvements.
- Professional services and fees related to improvements (not exceeding 5% of loan amount).
The CDA reserves the right to deny the use of certain fixtures or types of materials if it is determined another suitable fixture or material is more cost effective.
Availability of Funds
Applications are due January 31 of each year. Funding available to projects will not exceed $20,000 per designated Assisted Dwelling Unit or a maximum of $500,000 per project. The minimum loan amount is $50,000.
Funding will be in the form of a zero-interest, deferred loan. Repayment will be required upon sale or other transfer, refinancing, or the end of the Affordability Period (minimum of 15 years). The CDA retains the right to reject in whole or in part any application for any reason.
Summary of Eligibility Requirements
Private, public and non-profit rental housing owners are eligible to apply.
Funding awards will be based on:
- Organizational Capacity
- Site Control and Ownership
- Relocation Plan, if applicable
- Borrower Contribution
- Participation in Section 8 Program
- Financial Health
- Creditworthiness of Borrower
- Economic Feasibility
Property Eligibility
- Must have four or more units
- Must be in need of rehabilitation improvements, be structurally sound and also be in compliance with local ordinances and codes.
- Property insurance, taxes, assessments and any other liens must be current.
- 20% of Dwelling Units must have rent and occupancy restrictions for the entire Affordability Period.
- Rents must be restricted to the most current HUD rent schedule for 50% of AMI (less applicable utility allowance) and units must be occupied by households with incomes below 50% of AMI.
- Applications must demonstrate a minimum owner contribution of one-third the rehab cost.
Applications for the Rental Rehabilitation Loan Program are solicited annually in the fall.
Rental Rehab Loan Program Manual (PDF)
Rental Rehab Loan RFP Guide (WORD)
For more information about the Rental Rehabilitation Loan Program, contact Mark Hanson at (651) 675-4469.
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