Housing Rehabilitation

Program Overview

The Dennis and Truro Boards of Selectmen, working in conjunction with Community Development Partnership, seek applicants for a regional Housing Rehabilitation Program. The funding is provided by the Massachusetts Department of Housing and Community Development and allows a 0% interest, deferred, forgivable loan to make critical repairs to your home. This program is designed to improve existing housing conditions of low and moderate income resident households by eliminating code violations. Eligible repair activities will include, but are not limited to, electrical, heating and plumbing work; structural repairs; roof and siding repairs; insulation and window replacement; lead paint and asbestos removal; and handicap accessibility improvements.

Eligibility

Preliminary eligibility is defined as an applicant meeting the initial eligibility requirements, as laid out in the pre-application, in order to qualify to begin the housing rehabilitation application process. Final eligibility is determined after the fully completed application and all supporting documentation is received, reviewed and accepted by the CDP's Director of Housing Rehab Programs.

Applicants: This program is offered to owner-occupied single-family/multi-family and investor-owned units in the Target Areas of South Dennis, Harwich, Eastham, Truro and Provincetown. If the structure is a single-family owner-occupied unit, the owner must meet income guidelines of low to moderate income. If the structure contains year-round rental units, at least 51% of all the households, including rental units/renters, must meet these income limits. The applicant must be the property owner of record for the proposed residential structure. Please refer to the table for income levels based on household size.

Family Size 1 2 3 4 5 6 7 8
Very Low Income 31,600 36,100 40,600 45,100 48,750 52,350 55,950 59,550
Low Income 47,600 54,400 61,200 68,000 73,450 78,900 84,350 89,800

Construction

Structures: The primary purpose of the deferred payment loan program is to bring deteriorated residential units into compliance with all applicable Federal, State and Local codes. To be eligible, a structure or portion thereof must be residential and contain one or more code violations. Note: All code violations must be corrected as a condition of participating in the CDP Housing Rehabilitation Program. A Housing Rehab Specialist will conduct a site visit and develop a detailed work write-up and cost estimate. The Housing Rehab Specialist will then review the work write-up and cost estimate with the homeowner. NOTE: CDP Housing Rehabilitation Program is a moderate rehabilitation program. If upon completion of a site visit, detailed write-up and cost estimate, the Housing Rehab Specialist determines that the dollars needed far exceed program limits, the project can be deemed infeasible and the funding denied.


Funding Mechanism-Deferred Payment Loans

The CDP Housing Rehabilitation Program offers deferred payment loans to finance the rehabilitation of eligible projects. The maximum loan is $35,000 per unit to address code violations. An additional $5,000 per unit is available when improvements include removal of lead paint or asbestos, creating handicapped access, septic system replacement or multiple energy efficiency enhancements. The loan is secured by a lien placed on the property for a period of 15 years. The interest rate is 0%. The loan will be forgiven at a rate of 1/15th per year provided the property owner(s) are not in any way in default; therefore, deferred payment loans do not require monthly loan payments. If a property is sold or transferred within the 15-year period after rehabilitation completion, the funds will be recaptured on a prorated basis. After the 15-year recapture period expires, the loan is forgiven.  

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