Department of Planning and Development
5% Rental Restoration Loans
Mission Statement
Here's an affordable, easy way to increase the value of your rental property and keep good tenants. The Division of Community Development offers 5% Rental Restoration Loans that can be used for a wide variety of property improvements.
The Division of Community Development Staff will work with you throughout the loan process. If you want to maintain your property value and take pride in Lakewood, we want to work with you.
Eligibility Requirements
- You must own a single, double or triple home in Lakewood to which the proposed improvements or repairs are to be made.
- The gross household income of your tenant(s) must not exceed certain income requirements. Fifty percent (50%) or more of your tenants must meet these income requirements.*
- Rents must remain the same to current tenants for a minimum of two years.
- A mandatory whole house inspection fee will be charged. The fee is refundable when the project is completed.
- After rehab, must meet or exceed Section 8 Housing Quality Standards and satisfy City of Lakewood Code requirements.
- Inspection Fee: $50 per Building, plus $5 per unit.
* Uniform Relocation laws which prohibit tenant displacement apply to all projects utilizing federal funds
The total gross income of your tenants must not exceed these income requirements:
| Household Size |
Maximum Household Income |
| 1 |
$35,700 |
| 2 |
$40,800 |
| 3 |
$45,900 |
| 4 |
$50,950 |
| 5 |
$55,050 |
| 6 |
$59,150 |
Affordable Financing
- Interest Rate: 5% Simple Interest
- $15,000 per unit maximum loan
- Loan Term: Up to 10 Years (120 months)
- Payment: Monthly
- Secured by lien on property
Typical Improvements
Loans may be used to eliminate any potential housing safety violations and on general property improvements such as:
- Roofs, gutters and downspouts
- Driveways and sidewalks
- Furnaces and hot water heaters
- Upgrading of electrical systems
- Bathroom replacements
- Ceiling and wall insulation
- Storm and replacement doors and windows
- Waterproofing basements
- Upgrading kitchens
- Plumbing
- Exterior painting
- Carpentry repairs
- Plaster repairs
The First Step In Getting A Loan
- Contact the Division of Community Development at 216-529-HOME (4663) to schedule an appointment to fill out an application. You will need to supply the following information:
- If you're employed, a recent paycheck stub.
- Last year’s W-2’s and federal tax return with all attachments, if filed.
- If you're retired, current written monthly allowance verification. This can be obtained by calling Social Security toll-free at 1-800-772-1213.
- If you receive other pensions, written verification of monthly allowance.
- Verification of interest and dividends received from savings accounts, stocks, bonds. etc.
- Verification of outstanding principal balance and monthly payments of any mortgages on the property.
- Outstanding liabilities (credit cards, car loans, credit union, etc.) including monthly payments.
- Month and year your home was purchased and purchase price.
- Market value of your home as listed on most recent tax appraisal.
- Birthdate and Social Security number of spouse, if applicable.
- Recent utility bills (water, electric, gas).
- Tenant(s)' name, number of family members and estimate of income.
What To Do Next
- Have your rental property inspected. A mandatory inspection and evaluation of your rental property is completed by one of our Project Specialists to verify the work to be completed. This review is confidential and is not shared with any other city departments or divisions. Bid specifications will then be completed which you can use to obtain contractor estimates.
- Obtain cost estimates from contractors chosen by you who are registered to work in the City of Lakewood. A registered contractors list can be accessed from this website.
- Submit your cost estimates to us. The Division of Community Development Loan Approval Board will then consider your application. We are eager to work with you and will do all that we can to approve your application.
Any Questions?
Just call the Division of Community Development at 216-529-HOME (4663). We'll be happy to answer any questions and schedule an appointment to fill out an application.