Eligibility Requirements
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Owner-occupied or land contract buyer three months prior to applying. Contract must be written, legally binding and properly recorded. Contract seller will be required to sign mortgage
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Low to moderate home owners/ landlords of low to moderate income tenants (Find out if you are within the limits below, please click on income limits button. You can be at or below the 80% limit under the number of people living in the home, children count as a person)
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All occupants directly benefiting from the Community Development Block Grant (CDBG) housing rehabilitation program must be at or below the appropriate Section 8 income limit for their county
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Include all sources of gross income and income from assets for all household members who are at least 18 years of age
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Property taxes paid current/ or active payment plan to show its being paid
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Mortgage must be current
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All mortgages, judgments and liens in addition to the rehab cost cannot exceed 120% of the Fair Market Value of the property
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Property must be insured/ insurable
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Eligible Rehab Activities
Repairs that bring the unit to decent, safe and sanitary condition using HQS Inspection/Evaluation of property.
Examples include but are not limited to:
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Roofs
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Siding
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Windows
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Plumbing
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Electric
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Septic
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Well
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Ineligible Rehab Activities
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Properties scheduled for sale, acquisition or condemned properties
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Mobile homes in a mobile home park (applicant must own land to be eligible)
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Reimbursement for work which has been contracted for or completed prior to signing agreement with the CDBG program
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Accessory buildings, garages or sheds
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New construction or expansion of the size of the structure
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Owner-Occupied and Rental Unit Rehabilitation Loans
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Owner-Occupied loans provide no-interest with deferred payment home repair loans for low to moderate owner occupants.
Rental Unit loans provide 0% interest with monthly payment loans (dependent on amount of loan) for repairing units rented to low to moderate tenants and/or creating new low or moderate income rental units by:
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converting vacant properties into rental units
and/or
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converting large single-family homes into duplexes
Please note: All CDBG loans shall be subject to equity. Exclusions are emergency situations.
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Emergency Situations
When there is an emergency situation:
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Homeowners will not be required to have an HQS inspection performed on their property. The homeowner now will have the option of reapplying to the CDBG Rehabilitation program at a later date to remedy any additional concerns
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Homeowner will not be required to have equity in their property. In addition, property liens, judgments and unpaid taxes do not preclude a homeowner from receiving assistance as it relates to emergency situations
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This ensures that the imminent threat to health and safety is addressed in a timely and efficient manner.
Emergency situations must be clearly documented to show the imminent threat to health and safety.
All other CDBG program requirements apply to emergencies situations and must be followed
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After Rehab Information
If there is a request to subordinate loans, each request will be subject to the following criteria as agreed upon by the Central Housing Region Committee:
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No additional debt can be incurred to the property
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There would be a savings due to a lower interest rate being offered to the borrower
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There would be better terms offered by the bank refinancing the debt