The Redevelopment Authority is accepting applications BY MAIL ONLY for assistance under its West End Home Rehabilitation Program.  This program is being financed in part by a grant from the Commonwealth of Pennsylvania Department of Community and Economic Development.  Those who apply for the program must reside in the West End neighborhood, which is defined as the 8th Ward of the City of Washington.

GUIDELINES FOR HOMEOWNERS

The U.S. Department of Housing and Urban Development has made Community Development Block Grant and HOME Investment Partnership Program assistance available to Washington County for projects and activities which principally benefit low and moderate income persons. In addition, the Pennsylvania Department of Community and Economic Development (DCED) has made funds available to Washington County for projects that provide affordable housing.

Consistent with the objectives of the Federal Community Development Block Grant Program and HOME Investment Partnership Program, the County Commissioners have established a program of housing rehabilitation loans designed to assist low and middle income homeowners in making needed repairs and improvements to their properties.

The material that follows fully describes the mechanics of the Program and the procedures that must be followed to apply for and receive assistance under this Program.

WHAT IS THE PURPOSE OF THE LOAN?

The Loan may be used to correct present, or soon to be present, housing problems, and for energy conservation improvements. In general, most repairs are eligible except for unnecessary luxuries. All properties funded will, at a minimum, meet International Building Code (IBC) Standards upon completion. The loan may not be used to refinance existing debt.

WHO IS ELIGIBLE FOR REHABILITATION LOAN ASSISTANCE?

Homeowners who own and occupy a residence in the West End Neighborhood (8^th Ward City of Washington) are eligible to receive assistance under this Program when funding is available and the following criteria are met: who meet certain income requirements, whose property taxes are current; and whose home has a value, after rehabilitation, that does not exceed the 203(b) Property Value Limits (i.e $248,900), and therefore, meets the CHAS Section 215 Criteria regarding affordable housing, are eligible to receive assistance under this Program.

Income categories have been established for participation in the Program in accordance with HUD’s statistical guidelines. Maximum income allowances are adjusted according to the size of the family:

Family of 1 - $35,000; Family of 2 - $40,000; Family of 3 - $45,000; Family of 4 - $50,000

In compliance with Section 504 of the Rehabilitation Act of 1973, as amended, the Redevelopment Authority of the County of Washington does not discriminate on the basis of handicap, in admission or access to, or treatment or employment in, its federally assisted programs and activities.

HOW MUCH CAN I BORROW?

Eligible households may borrow up to $23,000.

WHAT ARE THE REPAYMENT TERMS OF THE LOAN?

Borrowers are eligible for a "deferred loan" at 0% interest, meaning that no monthly payments are required, but the principal amount of the loan would become due and payable to the County when the property is sold or rented. A special provision of this loan is that this loan will be unconditionally forgiven at a rate of 10% of the loan amount each year if the borrower continues to own and occupy the property for 10 years after the loan is made. This loan will be secured by a Mortgage. Please be advised that we will not subordinate our mortgage for any reason. Therefore, if you are planning to refinance your existing mortgage, you may want to consider doing so prior to participating in this program.

SELECT THE CONTRACTOR?

The HOMEOWNER will be responsible for selecting the contractor. The homeowner will distribute copies of the General Work Specifications, which are the corrective specifications and invitations for bid proposals, prepared by the Authority, to qualified contractors of his/her choice. Owners are required to obtain at least two (2) bids. Please note that the Redevelopment Authority does not guarantee the work of any contractors. It is highly recommended that you check references and are comfortable with the contractor you select to submit bids for your work. You will not be happy with the outcome of this program if you are not satisfied with the quality of the work.

The Authority will prepare a construction contract between the homeowner and the lowest responsible bidder, which shall include the scope of work from the General Work Specifications. Should the owner choose to contract with the higher bidder, the Redevelopment Authority will pay the cost of the low bid.

In instances where IBC Standards performance requirements cannot be achieved within the maximum loan limitations, the property owner must provide evidence of financial capacity to complete the work in an amount up to $1,999. Should the cost of corrective work be $25,000 or more, the Redevelopment Authority will not undertake the rehabilitation of the subject property. The additional funding needed must be placed in escrow at the time of loan closing. Contracts of $25,000 or more require the use of lead abatement procedures and prevailing wages. No rehabilitation loans will be made by the Redevelopment Authority unless all IBC Standards are met either within allowable loan limitations or through the provision of homeowner resources. If it is not possible to bring the property to IBC Standards using available funding, the Authority will not undertake the rehabilitation of the subject property.

WHEN CAN THE WORK BEGIN?

Once the low bidding contractor has been chosen and the final scope of work and cost are agreed upon, a loan closing and preconstruction conference will be scheduled. This important meeting gives the owner, contractor and Authority staff a chance to carefully examine the final work specifications, especially to discuss the small details of the job and the time schedule. When this is completed, a contract is executed by the homeowner and contractor and the necessary loan documents are signed. One document signed will be a letter from the owner instructing the contractor to begin work . The contractor will not begin the work until the owner issues the Proceed Order directing him to do so.

HOW WILL THE FEDERAL LEAD-BASED PAINT REGULATIONS OF 1999 AFFECT ME?

If lead-based paint or lead hazards are detected in your home, you may be required to vacate your home during the course of the rehabilitation work. Also, the contractor that you select must be trained to perform work in a lead-safe manner. Please be advised that clutter and poor housekeeping can increase the contractor’s cost which may prevent you from participating in the program.

HOW DO I APPLY FOR ASSISTANCE?

All applications must be mailed to the Redevelopment Authority. Owners are urged not to delay in mailing, as applications are accepted on a first-come first-served basis. Funding for this program is limited.

Applicants will be notified as soon as possible. Accepted applications will be scheduled for building inspections and financial interviews by the Authority’s rehabilitation Staff. Contractors should not be contacted before the inspection.

QUESTIONS?

Please contact the Authority’s Rehabilitation Staff at 724-228-6875.