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Homeownership Rehabilitation
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The Housing Rehabilitation Program provides low-interest loans to low and moderate-income homeowners who are non-bankable. The program seeks to correct code and incipient violations (items in a house that will need to be repaired or replaced in 2 - 3 years) and make general property improvements. Loan payments cannot exceed 30% of homeowner's gross income.
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Program Eligibility:
To qualify for the Housing Rehabilitation Program, the following criteria must be met:
- Person owns and occupies home under code enforcement (with priority to homes in the targeted neighborhoods.
- Owner earns 80% or less of median income.
- The owner must possess satisfactory credit history.
- The owner must have the ability to meet monthly tax, insurance, maintenance and rehabilitation loan payments.
- Owner must participate in a maintenance reserve and home maintenance program.
Repayment Loan Terms
Amortized Loans:
- 1 - 3% interest rate
- Maximum of 30-year repayment
- Monthly payments - not more than 30% of gross income
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Deferred Payment Loans (DPL):
- Earn $500 or less per month - automatic DPL
- 0% interest rate
- No monthly payment if housing expenses are greater than 30% of gross income
- Monthly payments for taxes, insurance and maintenance
Loan Terms:
- Amortized and DPL loans are due upon death of borrower, property sold, rented, refinanced or maturity date
- Loan secured by lien on property (1st or 2nd)
- Loan may be assumable
Loan Approval:
- Neighborhood Development Key Business Executive approves loans up to $50,000
- Charlotte City Manager approves all loans up to $100,000
- Charlotte City Council must approve all loans over $100,000
The program is financed through the Community Development Block Grants and HOME Grant.
For more information, contact Diane Adams at 704.336.2911.
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