Facade Programs

FAÇADE REHABILITATION LOAN PROGRAM
GUIDELINES

INTRODUCTION/PURPOSE

The purpose of the Façade Rehabilitation Loan Program is to provide property owners and/or leaseholders that meet program criteria with a 0% interest loan. This loan combined with equity and conventional financing is to create a mechanism by which borrowers can access short term loan financing to improve building facades within the jurisdiction boundaries.

The program is offered by the Pottstown Downtown Improvement District Authority (PDIDA) with money made available by the DCED Department of Commerce and Economic Development. It has been designed to offer project financing which includes minimum 50% of project cost as a 0% interest loan combined with 50% borrower’s equity or conventional financing.

Technical and architectural loan assistance is offered on a 50/50 basis up to $500! All loans are subject to funding availability and the approval of the PDIDA. Maximum loan for $7,500.

PROGRAM BOUNDARIES

1. Target Area – shall be the boundaries of the PDIDA District jurisdiction. High Street (both sides) from east side of York Street to west side of Evans Street. Hanover Street (both sides) from south side of King Street to north side of Queen Street. Charlotte Street (both sides) from south side of King Street to north side of Queen Street.

ELIGIBILITY & PRIORITY

2. Eligible Properties – all properties which are zoned commercial for the purposes of retail sales, service business including food, clothing, financial, corporate offices, insurance, legal and artistic services including galleries, bistros, dining establishments, night clubs, boutiques, and other retail and service establishments not specifically mentioned.

3. Ineligible Properties - all properties that are zoned residential, industrial, are designated for religious purposes, and/or commercial properties leasing to businesses with special purpose intent such as private fraternal organizations, agencies servicing a small and specific percentage and part of the general public which has general appeal. PDIDA reserves the right to reject any application for funds under this program from any applicant who does not meet the criteria or intent of the goals and objectives of the PDIDA Strategic Plan.

4. PDIDA wishes to encourage reinvestment in the institutions, which support the goals and objectives of the Downtown Strategic Plan and are participating in PDIDA loan programs.

ACTIVITIES

5. Eligible Activities – include but are not limited to historic rehabilitation of existing façade, reconstruction of historically correct detailing or detailing similar to original, window replacement/rehabilitation, entrance doors, exterior cleaning (excluding sandblasting) masonry rehabilitation, painting and other activities generally accepted as improving and rehabilitating the historic architecture of a façade. Painting and color schemes in keeping with guidelines set by PDIDA and supported by the Pottstown Historical Architectural Review Board and Historical Society.

5a. Business Signage – Loan assistance if offered on a 50/50 basis up to $500 for design, manufacture and installation. Possible to increase.

6. Ineligible Activities – include new construction, roof repair or replacement (unless aesthetic improvement), site improvements, and improvements to other parts of the structure other than façade.

7. Type of Façade Rehabilitation – consistent with general age and historic character of the structure. Façade can mean front, sides or rear of the building provided these parts of the building are exposed to a main right-of-way or rights-of-way.

COSTS

8. Project Costs – shall mean the total costs for exterior work completed on the structure including ineligible items. Loan funds are to be used for eligible items only.

9. Minimum/Maximum – Minimum loans will be $250; maximum will be $7,500. Program participation not to exceed 80% of total project costs. Maximum architectural and technical assistance not to exceed $500.

10. Interest rate and terms – Interest rate will be 0% over a term of 5 years. No penalty associated with early repayment. PDIDA reserves the right to adjust the term on specific loans.

11. Fees- 1% administrative fee to recover costs of loan discovery, fee payable at closing. Additional $100 attorney fee at closing. Attorney’s fees can be waived for smaller loans at the discretion of PDIDA.

12. Architect – If no architect, PDIDA will assist in securing same. Architect’s fees up to $1,000 are eligible for inclusion in loan financing, 50% as part of the loan, and 50% from borrower.

APPLICATIONS & DOCUMENTATION

13. Application Process – Applications shall include a narrative outlining work on each individual façade of the structure to be rehabilitated and photographs or detailed sketches depicting the actual work items. Architectural and contractor estimates should be included. A statement allowing the bank administering the program to obtain a credit report on the applicant, two years of business/personal tax returns from the applicant and a personal financial statement or balance sheet are also required. Property appraisal may be required as well if applicable.

13a. A leaseholder may apply for loan funding provided a statement of approval by the property owner accompanies the application. Leaseholders may be required to provide additional financial information and evidence of collateral if applicable.

14. Staff review will determine eligibility of applications for consistency with the program criteria. A recommendation will be made to PDIDA for approval. Upon approval, PDIDA will turn over applications and accompanying documents to the bank administering the program.

LOAN CLOSING & REPAYMENT

15. There will be no reimbursement for facade rehabilitation in progress or completed prior to financing approval for projects.

16. Loan Closings – All loan closing will occur upon completion of the work and certification thereto. All façade loans will be secured with a lien, mortgage/note or other conventional methods determined by the PDIDA Solicitor. Loans can be given in increments of 25% of total as work progresses upon receipt of certified invoices from the contractor endorsed by the applicant, architect and/or mortgagee. Principal shall be due and payable on a monthly schedule on principal advanced and shall commence 30 days after each loan advance.

17. Repayment of Loan – Loan payments are due and payable monthly within 30 days of due date. A late payment charge of 3% will be added to payments received after 10 days from due date.

18. Penalties – If the borrower fails to comply with the requirements established for the repayment of the loan (90 day delinquent), interest will be added as follows: prime interest as defined by the report of the Wall Street Journal +2% subject to adjustments monthly on the outstanding balance for the remainder of the loan. A 2/3 majority of the Board may waive this provision after investigating the circumstances of the delinquency, by motion at a regularly scheduled meeting of the PDIDA Board.

19. Loan Commitment –work on façade improvements must be initiated within 90 days of the date of approval of the loan application. A 3-month extension may be applied for but approved at the sole discretion of the Board by majority vote. The loan fund commitment will be released if the applicant meets neither of the time frames. The applicant can re-submit an application for consideration.

20. The above guidelines are subject to change at the discretion of PDIDA.