SALISBURY — Planning Director Janet Gapen said “a substantial amount of funds” — $400,000 — has been allocated in the city’s Capital Improvement Plan for West End housing rehabilitation for several years.

“And now we are at a point where we’re looking at the upcoming fiscal year and those funds will come into play,” Gapen said at Tuesday’s City Council meeting.

The plan is a pilot program that would be limited to the North Main Street corridor and the neighborhood around Salisbury High School.

Gapen said that if the program is successful, it could be expanded to other areas.

The program would involve giving grants to both owner-occupied and rental exterior rehabilitation projects.

For homeowners, the maximum grant would be $20,000. For rental owners, the maximum would be $10,000.

Homeowners would receive the grant as a “deferred mortgage lien,” which would be forgivable after five years if the homeowner continues to own, occupy and maintain the property as their primary residence.

There is no match requirement for homeowners, but rental owners would be required to contribute a 25 percent match — a maximum of $2,500 — to the project.

The rental owner would also be required to rent to a low- to moderate-income tenant.

Gapen said some of the purposes of the program include stabilizing property values and preserving housing. All work would be managed and bid by partner housing development organizations, like the Community Development Corp.

Gapen said her presentation showed a “proposed framework” of how the program might operate.

“I want to let you know that we’re still working out many of the details. We’re working on program guidelines,” Gapen said. “But we wanted to bring this to your attention now and welcome any feedback or thoughts that you want to share about it.”

After asking questions about things like the range of the Salisbury High School neighborhood and sources of grant funding, City Council members did not ask Gapen to make any changes to the proposed program.

Gapen said the department wants to continue to refine the guidelines but also “be ready to start as soon as possible.”

Contact reporter Jessica Coates at 704-797-4222.