-Owner of low-to-moderate income renter-occupied unit(s) -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 -Include all sources of gross income and income from assets for all household members who are at least 18 years of age -Property taxes paid to date -Mortgage must be current -All mortgages, judgments and liens in addition to the rehab cost cannot exceed 120% of the Fair Market Value of the property -Property must be insured
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: -Roofs -Siding -Windows -Plumbing -Electric -Septic -Well
Ineligible Rehab Activities
-Properties scheduled for sale, acquisition or condemned properties -Mobile homes in a mobile home park (applicant must own land to be eligible) -Reimbursement for work which has been contracted for or completed prior to signing agreement with the CDBG program -Accessory buildings, garages or sheds -New construction or expansion of the size of the structure
Rental Unit Rehabilitation Loans
Owner-Occupied loans provide no-interest with deferred payment home repair loans for LMI owner occupants.
Rental Unit loans provide 1.5% interest loans for repairing units rented to LMI tenants and/or creating new low or moderate income rental units by: -converting vacant properties into rental units and/or -converting large single-family homes into duplexes
Please note: All CDBG loans shall be subject to a $50,000 maximum
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: -No additional debt can be incurred to the property -There would be a savings due to a lower interest rate being offered to the borrower -There would be better terms offered by the bank refinancing the debt