The Rental Rehab Program is a available through MSHDA (Michigan State Housing Development Authority). The program is currently being taken advantage of by one of Morenci's downtown business owners. If you are interested in this program, please contact the City Administrator or City Clerk to assist in initiating the process.
MSHDA's Rental Rehabilitation program offers significant financial support and technical assistance to downtown property owners to develop their upper stories as residential units. This is one of the most powerful economic development incentive programs available to Morenci's downtown property owners.
Downtown rental rehab projects have a long-term positive impact, resulting in increased revenue to downtown property owners as they maximize their property's potential. By enlivening the downtown with people that live, shop, and eat locally, downtown businesses experience increased activity and sales.
- Qualified property owners can receive up to $35,000 per rental unit.
- Up to 16 units per project can qualify under the program
-Property owner hires architect or engineer to provide preliminary plans to derive cost estimates
-Property owner initiates preliminary phase 1 environmental
-Property owner shows ability to fund, at a minimum, 25% of the total project cost. Owner contribution varies depending on several site-specific variables and finish selections.
Granted project funding is recorded as a deferred payment mortgage between the City and the property owner for five years. There are no interest or mortgage payments due, and very little owner obligation attached.
- Property must be maintained as residential rental for five years, with 51% of the initial occupants meeting low to moderate income criteria. A mortgage note, and loan agreement between the City of Morenci, the DDA, and the property owner governs these minimal requirements. After five years of compliance, the loan is forgiven and the lien is released.
Downtown rental rehab projects are truly a rewarding team effort, with property owners at the center, receiving direct financial benefit from MSHDA funding dispersed through the City of Morenci.
The City of Morenci has brought Eriksen Development Company on board as the third party administrator. They will guide property owners through the entire process, and act as a liaison between local and state governments, and all consultants, including the property owner's engineer or architect and contractor. They will make sure all program requirements are met, and that all associated paperwork is processed accordingly. These dynamics make it possible for the property owner to dream big and enjoy the process as they design, invest, and witness the transformation of their property.