Martin Street rehabilitation project Edenton Street rehabilitation

Repair a Home

Homeowner Rehabilitation Pilot Program

Purpose:

To help low and moderate income homeowners living in designated areas of the City rehabilitate and maintain safe housing

SOURCE OF FUNDS

Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), or Bond funds

TO BE ELIGIBLE FOR THE PILOT PROGRAM:

• The property must be located within a redevelopment area or a low-income census tract.
• The property must be traditional single-family housing that is owned by the occupant.
• The property must be the owner’s primary residence after the project is completed.
• If federally funded, the property must meet federal housing quality standards when the project is completed (see Section 8 Inspection Checklist for federal quality standards).  The property may be considered not suitable for rehabilitation if it is dilapidated beyond feasible economic repair.
• The property must not be located within the right-of-way of a future street, highway, or public improvement project.

ALLOWED EXPENDITURES INCLUDE:

• Rehabilitation costs necessary to meet required property standards (i.e. supplies, materials, labor) 
• Soft costs (i.e. closing costs, appraisals, fees, etc.)

LOAN INFORMATION

Loan 1:  Deferred, non-interest bearing loans are available to homeowners earning 50% or less of the area median income whose income does not exceed the following:

1 in Household $25,050                       4 in Household $35,800

2 in Household $28,650                       5 in Household $38,650

3 in Household $32,200                       6 in Household $41,550

• Loan 1A – If the cost of rehabilitation is $10,000 or less, a loan may be offered as follows:

LOAN DESCRIPTION

• Loan Amount:  Between $1,000 and $10,000
• Loan is a deferred, non-interest bearing loan that discounts 1/5 per year (20%) for 5 years. Balance of loan is due and payable if borrower dies[*], sells the home, or moves within 5 years. After 5 years, the loan is forgiven.

Loan 1B – If the cost of rehabilitation exceeds $10,000, a second loan may be offered as follows:

Loan Description

For homeowners 55 years of age and older or disabled:

• Loan amount: Cost of rehabilitation exceeding $10,000 up to $45,000

• Loan is deferred for 5 years then discounts 1/10 per year (10%) for remaining 10 years. Balance of loan is due and payable if borrower dies*, sells the home, or moves within 15 years. Loan is forgiven after 15 years.

For homeowners under 55 years of age:

• Loan amount: Cost of rehabilitation exceeding $10,000 up to $45,000
• Loan is deferred for 10 years then discounts 1/5 per year (20%) for remaining 5 years. Balance of loan is due and payable if borrower dies*, sells the home, or moves within 15 years. Loan is forgiven after 15 years.

Loan 2:  Repaying loans for the cost of rehabilitation are available to homeowners earning between 51% and 80% of the area median income whose income does not exceed the following:

1 in Household $40,150                       4 in Household $57,300

2 in Household $45,850                       5 in Household $61,900

3 in Household $51,550                       6 in Household $66,450

Loan Description

• Loan Amount: Cost of rehabilitation up to $45,000
• The loan bears an interest rate of 3% and may be repaid over 20 years (240 payments)

Other conditions and exceptions apply.

CONTACT

To apply for a loan or to obtain more information, you may call 857-4330 to schedule an appointment or you may visit our office at 310 West Martin Street, Room 101.

Limited Repair Program

Goal: To assist low-income homeowners with repairs on a limited scale.
Source of Funds: City of Raleigh Bond
Eligible Areas: Homes must be located within the city limits of Raleigh
Eligible Projects: Owner occupied, single family property in need of repairs that meet the definition of limited repairs (i.e.: leaking roof, electrical or plumbing problems). The cost to repair cannot exceed $5,000.
Eligible Candidates: The unit must be owner occupied upon completion of repairs. Family income cannot exceed 50% of the area median income.
Loan Description: Five year forgiveable loan; 20% forgiven each year if homeowner remains in the home.

Fee: $25 nonrefundable fee
Contact: Christine Ratcliff

Elderly Homeowners Rehabilitation Deferred Payment Loan Program

Goal: To assist elderly or disabled low-income homeowners maintain safe and decent housing.
Source of Funds: CDBG or HOME funds
Eligible Areas: Citywide
Eligible Projects: Owner occupied, single family property found to be in noncompliance with City minimum housing code. Owners must occupy the property as their principal residence.
Eligible Candidates: Owner occupants who are 62 years of age or older, or permanently disabled, and whose incomes are below 50% of area median. Homeowners must meet the criteria based on the Department of Housing and Urban Development (HUD) to determine low-income.  Current year property taxes must be paid prior to applying.
Loan Description:
Maximum Loan: $45,000 maximum; $1,000 minimum
Maximum Loan to Value: City loan plus any preexisting loans cannot exceed 100% of value.
Term: No payments until sale, refinancing or change of ownership of the property upon the death of the borrower.
Lien: First, second or third position.
Administration: Application packages are to be submitted to the Community Development staff.
Fee: $25 nonrefundable fee
Contact: Christine Ratcliff

Homeownership Purchase And Rehabilitation And/Or Rehabilitation Only

Goal: To assist low- and moderate-income persons citywide with the purchase and rehabilitation or rehabilitation (only) of their homes.
Source of Funds: Community Development Block Grant (CDBG) or HOME funds.
Eligible Areas: Citywide
Eligible Candidates: Homeowners with incomes at or below 80% of the median income.
Loan Description: Very low-income homeowners may qualify for a non-interest bearing deferred loan. Otherwise, the interest rate is 0% - 3%, depending on the ability to pay.
Minimum/Maximum Loan: Minimum amount is $1,000. Maximum loan will depend on available funds and borrower's ability to pay.
Maximum Loan to Value: 100%.
Term: Up to 30 years if home is purchased; otherwise, up to 20 years if home is rehabilitated.
Other Conditions & Exceptions:

• Monies to be expended on rehabilitation must equal at least 35% of the purchase price

• Underwriting ratios; first ratio at a maximum of 30% and the second at 41%.

Administration: Apply for the loan at the City of Raleigh Community Development Department. If you are acquiring a property, a contract to purchase should accompany the application.
Fee: $25 nonrefundable application fee
Contact: Kim Hubbard

For More Information Contact:
Christine Ratcliff
Senior Support Staff Specialist
Community Development Department
P. O. Box 590
Raleigh, NC 27602
919-857-4330

Kim Hubbard
Community Development Loan Specialist
Community Development Department
P. O. Box 590
Raleigh, NC 27602
919-857-4330

Print

Email

Bookmark