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PRESQUE ISLE, Maine — A brand new landlord mortgage program in Presque Isle has caught the eye of the Governor’s Power Workplace.
Town’s program presents cash for landlords to enhance vitality effectivity, with the concept that the financial savings will assist each house owners and tenants.
There are different varieties of landlord incentives within the state. The Maine State Housing Authority presents $750 to landlords for every rental property they place within the Housing Selection Voucher program, which for eligible tenants pays a portion of lease and utilities on to the owner. Different communities, together with Bangor, make use of grants to assist landlords.
However a municipally ruled mortgage program is a brand new concept, and one which state officers advised may encourage comparable packages all through Maine.
“Presque Isle could also be on to one thing distinctive,” mentioned Scott Thistle, communications director for MaineHousing.
MaineHousing’s vitality effectivity incentives deal with householders and never landlords, Thistle mentioned.
The Presque Isle Winterization and Rental Modernization program will provide low-interest loans to landlords for vitality effectivity and security upgrades, which property house owners will repay over 4 to 10 years.
The Governor’s Power Workplace contacted Presque Isle officers as soon as they’d heard about this system and advised it may be a mannequin for the remainder of the state, mentioned Galen Weibley, director of the town’s Division of Financial and Neighborhood Growth.
“We’re very a lot conscious of the governor’s local weather resiliency plans,” Weibley mentioned. “This is only one means the town of Presque Isle is seeking to save and preserve for future generations.”
However metropolis officers additionally hope it’ll battle rising vitality prices in an space the place winter’s chilly can go away some aged and low-income residents questioning how they’ll survive.
Individuals who lease flats in Maine have rights below the state’s shopper legislation information. There’s one particularly for winter heat. Below the Guarantee of Habitability, landlords should preserve temperatures heat sufficient that they don’t make a usually wholesome particular person sick.
Town modeled the idea on a first-time dwelling purchaser mortgage program it had within the 1980s. Debtors have been required to remain in these properties for 10 years and repay the loans.
These repayments have been held in reserve. The thought for the brand new incentive loans was floated throughout discussions with Presque Isle’s rental property working group, and metropolis leaders put up $100,000 of that reserve cash to get it began.
Loans vary from $1,000 to $20,000 per property. The funds have to be used both to deal with security code violations or for enhancements reminiscent of new home windows or doorways, insulation, warmth pumps — something that can enhance vitality effectivity, thereby reducing landlords’ working prices and what tenants pay for warmth.
“Being in northern Maine, we all know weatherization is one thing we have to put together for,” Weibley mentioned. “We’re attempting to companion with landlords to button up their rental properties and provide financial savings on their operational prices, however it helps out tenants to maintain them heat this winter.”
Candidates first undergo an underwriting course of earlier than they’re accredited for a mortgage, after which landlords should submit paid receipts or invoices to the town so as to obtain the cash.
Town additionally requires collateral on every property that’s being improved, Weibley mentioned. The cash can be paid again over a interval of 4 to 10 years, relying on agreed-upon phrases, and the repayments will revolve into different loans.
About 10 candidates have expressed curiosity up to now. In line with maps the town ready final 12 months, Presque Isle has roughly 1,100 rental items, together with faculty dorms and nursing properties.
“In Presque Isle, we’re very fiscally conservative individuals,” Weibley mentioned. “We do need to provide some beneficiant phrases, however we need to have this repaid.”
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