News from the Noteworthy from Otsego Rural Housing Assistance

ORHA Looks To Help Rehab Rental Units

Otsego Rural Housing Assistance announced on Monday, August 25 that it is planning to apply for the Vacant Rental Improvement Program. The grant program, funded by New York State Homes and Community Renewal, supports the rehabilitation of vacant rental units and other eligible vacant spaces to increase the supply of rental housing that is affordable to low- and moderate-income families. To support its grant application to the state, ORHA is asking interested owners of vacant properties to submit their information through an online survey at bit.ly/OtsegoVRP.

The VRP provides assistance to responsible property owners of smaller-scale rental housing, with priority given to local property owners and property owners who own no more than 20 residential units. According to a press release, eligible projects would rehabilitate or repair vacant spaces in Otsego County that either are already residential units or could be converted into residential units by the project. Properties must have at least one but no more than five residential units by the end of the project. Spaces must be unoccupied, and the vacancy must be because the unit is in uninhabitable or unmarketable condition. Mobile and manufactured homes are not eligible.

“The VRP offers us an opportunity to take units that are sitting empty right now and get them back on the market as safe, decent rental housing that will stay affordable long-term rentals for a decade,” said ORHA Executive Director Bridget Stith. “I really encourage any property owner who might be interested in participating to complete our survey or contact us with their questions.”

If ORHA is awarded a grant, the organization could provide assistance to property owners of up to $50,000.00 or $75,000.00 per rental unit. In return for the state-funded rehabilitation work, participant owners would be required to rent only to households below a certain income limit and charge rent within a limit for 10 years. Owners can qualify for the higher amount of assistance by agreeing to a lower income limit and a lower rent cap. Property owners must also offer 12-month leases and keep the units in good condition, officials said.

Rent limits would be calculated based on each unit’s size and utilities and would change every year. As an example, a three-bedroom unit where all utilities would be included would have a maximum allowable rent of $1,897.00 (for a $50,000.00 award) or $1,422.00 (for a $75,000.00 award) in 2025.

The tenant income limit for units that receive up to $50,000.00 in assistance would be 80 percent of the area median income, currently $72,950.00 for a family of four in Otsego County. For units that receive assistance up to $75,000.00, the tenant income limit would be 60 percent AMI, currently $54,720.00 for a family of four in Otsego County. Tenants’ income would only be calculated when they first move into a unit, and ORHA would perform calculations for property owners. ORHA and other non-profit partners would also be able to help owners market units to low- and moderate-income families.

ORHA is asking property owners to respond to the survey early, at least by Monday, September 8, if they want to help bring the VRP to Otsego County. According to officials, responding to the survey would not commit any owner to moving forward with the program in the future if ORHA receives grant funding. The survey can be accessed at bit.ly/OtsegoVRP.

ORHA can be reached for questions at (607) 286-7244 or orha@otsegoruralhousing.org.