Delaware rental program would cap tenants' rent during project loans

The program would offer long-term loans to buy land or buildings, build or repair rental homes, or add needed facilities. Projects must serve at least one of these groups: families with income no more than $5,500 above 80% of the area's middle income, older adults, or people with disabilities. Each building must have at least two rental homes and meet building codes, an energy code, and federal housing standards.

The state housing agency would subsidize interest on program loans to a 1% payment rate. These terms apply to eligible borrowers receiving program loans for rental housing projects. The loan's interest rate must be the lower rate at approval or closing. Payments may be calculated over up to 50 years. The agency may limit early repayment. Borrowers must repay the loan within 30 years of its date.

Program-financed projects would limit tenants' monthly rent and accept rent subsidies that tenants bring. These rules cover tenants and rental projects financed through the program. Basic rent covers approved project expenses and the required loan payment after subtracting the agency's interest credit. Similar homes in a project must have the same stated rent. The tenant rent limit applies during the program loan.