My fourplex needs a total of maybe $50-60k of rehab (flat roof, flooring, windows, kitchens, etc.). The city redevel. association gets funds from HUD and lends it to landlords for rehab at 2% interest, and they’ll match up to $4000 per unit (they pay half, as a grant) for lead remediation, which means new windows, sorely needed.
If I take their money, they bid the jobs, limiting who I can hire to those who choose to bid. They impose restrictions about how much rent I can charge for the next 10 years, and who I can rent to (60% low-income). The rules are not extreme, as my place is in a mostly rentals, lower income area. I can get the cash via lines of credit, but like the terms of the loan and grant, which would leave me more cash to invest in other deals. In your experience (not just opinion) is this a good tradeoff? Do the hoops and restrictions of the HUD money pay off long term, or is it just not worth it?