Purpose: The Very Low-Income Housing Repair program provides
loans and grants to very low-income homeowners to repair, improve, or
modernize their dwellings or to remove health and safety hazards.
Eligibility: To obtain a loan, homeowner-occupants must be unable
to obtain affordable credit elsewhere and must have very low incomes,
defined as below 50 percent of the area median income. They must need to
make repairs and improvements to make the dwelling more safe and sanitary
or to remove health and safety hazards. Grants are only available to
homeowners who are 62 years old or older and cannot repay a Section 504
loan. For Income and Property Eligibility please see our Eligibility Site.
Terms: Loans of up to $20,000 and grants of up to $7,500 are
available. Loans are for up to 20 years at 1 percent interest. A real estate
mortgage and full title services are required for loans of $7,500 or more.
Grants may be recaptured if the property is sold in less than 3 years. Grant
funds may be used only to pay for repairs and improvements resulting in the
removal of health and safety hazards. A grant/loan combination is made if
the applicant can repay part of the cost. Loans and grants can be combined
for up to $27,500 in assistance.
Standards: Repaired properties do not need to meet other HCFP code
requirements, but the installation of water and waste systems and related
fixtures must meet local health department requirements. Water supply and
sewage disposal systems should normally meet HCFP requirements. Not all the
health and safety hazards in a home must be removed with Section 504 funds,
provided that major health and safety hazards are removed. All work must meet
local codes and standards.