HOUSING REHABILITATION PROGRAMS
The Housing Rehabilitation Programs through the Grants Division of the City of Gloucester, offers deferred and low interest loans to Owner occupied and Investor homeowners.
Funding is provided by the U.S. Department of Housing and Urban Development through the Community Development Block Grant Program. __________________________________________________________________________________
PROGRAMS OFFERED
OWNER OCCUPIED Single & Multi-family Housing Rehabilitation Program
The Grants Office will provide variable interest rate funds for the rehab or creation of new units within an existing building.
To Qualify:
a. Home must be owner occupied.
b. Property owner or tenant must be income eligible (Income MUST fall within HUD Guidelines).
Application MUST include a copy of the most current Federal Tax Form & W2's & property deed.
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INVESTOR Multi-family Housing Rehabilitation Program
The Grants Office provides a five percent (5%) interest loan for a term up to fifteen (15) years to assist investors of residential rental properties.
To Qualify:
a. A Tenant Income Information Form will be required of each unit.
b. 51% of the tenants must be income eligible.
Application MUST include a copy of the property deed.
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MUTUAL PROGRAM INFORMATION
Extensive Rehabilitation may require a Lead Paint Certificate, this will be discussed during the
application review.
The owner will obtain bids and select the most capable contractor, who will be awarded the project.
You will be required to sign an Owner/City Contract & Mortgage.
A mortgage lien will be recorded at the Southern Essex District Registry of Deeds.
A $175 recording fee required by the Registry will be your responsibility.
All loans are payable in full at sale, transfer or Cash Out for Equity Loans.
The Rehabilitation Specialist will periodically inspect the work.
The owner is encouraged to manage the project.
Payments are made to the homeowner upon receipt of an invoice if approved by the Rehabilitation Specialist.
The city will only subordinate to a lower interest rate. The city WILL NOT subordinate for purposes to take cash equity out. If you wish to take cash out, you MUST REPAY the city rehabilitation loan at time of refinance.
This office follows the guidelines of the Uniform Relocation Act of 1970. No tenant will be evicted due to rehab efforts funded by the CDBG Programs. If its necessary for a tenant to be temporarily relocated, the owner will provide a "decent, safe & sanitary temporary unit".
All units must remain "affordable" for a period of (15) years. The owner agrees to rent rehabilitated units with no more than 10% annual increases allowable up to maximum of HUD Fair Market Rents. The Fair Market Rent clause remains on the property for 15 years, regardless of who owns the property.
NO loans will be processed if there are any outstanding city fees or property taxes.
Hearing Relay Operator #1-800-439-2370
Debbie Laurie, Sr. Project Manager
Phone: 978-282-3027
Fax: 978-282-3035
E-Mail: Debbie Laurie
Application for Housing Rehab Programs
Click here for a copy of the Housing/Rehabilitation Application
Created on 2003-10-21 14:53:24 by ssilveira
Updated on 2009-09-09 13:04:42 by jorlando
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