Mount Holly Small Cities Housing Rehabilitation Program

PROGRAM INFORMATION HANDOUT

INTRODUCTION
The Township of Mount Holly applied to the State and received funding to help homeowners with their needed home repairs. The funding of this “Neighborhood Based Rehabilitation” is part of the Federal Small Cities Community Development Block Grant Program. The Township created the local Mount Holly Small Cities Housing Rehabilitation Program (HRP). Among the objectives of this program is to revitalize neighborhoods by assisting income eligible owner-occupied single-family properties to correct existing interior and exterior health, safety and code violations in their homes in conformity with the standards of the New Jersey Rehabilitation Subcode N.J.A.C. 5:23-6. The Township of Mount Holly has contracted with Community Grants, Planning & Housing LLC (CGP&H), a private consulting firm specializing in the implementation of publicly funded housing rehabilitation programs, to manage and administer the HRP.
APPLICATION SELECTION
The program will process new applicants added to the applicant pool waiting list on a first-come, first served basis, to qualified applicants. Priority will be given to emergency rehabilitation situations.
Eligibility Requirements:
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You must be an owner-occupied single-family home located in the Township of Mount Holly.
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Your household must be within the income limits.
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Your property cannot have an existing reverse mortgage.
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You must have a current homeowner’s insurance policy on the house to be assisted by the Program.
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There must be existing eligible home improvement(s), including at least one a major system in need of substantial repair. Please refer to the Eligible Improvements Section for additional information.
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Property taxes, municipal utilities, and, if applicable, mortgage are paid current. For applicable developments, Homeowner Association and/or Lot Fees must be paid current as well.
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Any previous or current bankruptcies must be discharged, on record, prior to applying to the Program. Please note the Program pulls a title search on all properties and a clean title search is required for Program participation.
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If any additional living quarters (bedrooms, kitchen or bathroom facilities) exist in the basement or attic, as well as, if there is a secondary kitchen within the unit, the homeowner will be required to provide evidence (closed out permit, certificate of occupancy, etc.) the Township of Mount Holly has permitted the area, prior to proceeding with Program assistance.
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If there are any repairs or renovations currently being undertaken on your home by others or yourself, or done within the last few years that require or required municipal permits, the work must be completed and the permits closed out prior to applying to the Program. Contact the municipal construction office if you have questions regarding construction permit requirements.
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PLEASE NOTE, THE PROGRAM DOES NOT REIMBURSE FOR PREVIOUSLY COMPLETED WORK, OR FOR WORK THAT IS CURRENTLY UNDERWAY.
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Mobile home owners are eligible to participate in this program.
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INCOME LIMITS
Household income is defined as the combined annual income of all family members 18 years of age and older including wages, Social Security, disability insurance, unemployment insurance, pensions, dividend/interest income, alimony, etc. To qualify for program assistance, the household total gross annual income for all family members 18 years of age and older must be less than the federal Housing and Urban Development (HUD) low-income limits (updated annually).
ELIGIBLE ACTIVITIES
For clarification of eligible work items, be advised that funds may be used only for work and repairs required to make the unit standard and abate interior and exterior violations of the NJ Rehabilitation Code (N.J.A.C 5:23-6) and/or any other applicable housing codes; conserve energy and remove health and/or safety hazards; and any other work or repairs, including finishing and painting, which are directly related to the above listed objectives. The Program must install smoke and CO detectors as required by applicable codes in all houses assisted with program funds. If funding permits, driveways and appliances are eligible under certain conditions allowable by HUD. If the owner sells the property after improvement, appliances purchased with the program funds must remain in the property.
A. Eligible Improvements
In order to qualify for participation in the program, at least one of the following major systems must be in need of replacement or substantial repair:
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Roof
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Plumbing (including sanitary plumbing)
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Electrical
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Load bearing structural systems
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Heating
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Lead Paint Hazard Remediation
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Weatherization (windows, insulation, etc.)
The Program Inspector will visit the home to perform the property inspection and, if appropriate, issue a Certification of Substandard.
B. Ineligible Improvements
Work not eligible for program funding includes but is not limited to luxury improvements (improvements which are strictly cosmetic and/or upgrades), carpets, additions, conversions (basement, garage, porch, attic, etc.), repairs to structures separate from the living units (detached garage, shed, barn, etc.), furnishings, pools, landscaping, sidewalks, solar panels and generators. Rehabilitation work performed by property owners shall not be funded under this program. The cost of removing any illegally converted living space (e.g., illegal bedrooms in the basement) are not eligible for assistance.
FUNDING TERMS
There is no cost to apply and applying for program funds does not affect your credit score. Up to $25,000.00, as needed, will be available to each eligible owner-occupied single-family applicant as a zero percent (0%) deferred loan. There is no monthly payment and no interest. Also, there are no prepayment penalties. The loan is not due payable until sale or transfer of title, and only for the exact amount borrowed with no interest or penalties.
A mortgage and mortgage note will be executed at the time of the pre-construction conference for the value of the rehabilitation work to be done on the unit. The mortgage is then recorded when the rehabilitation work is complete.
When the owner decides to sell the property, transfer title, or if the owner should die, the owner, heirs, executors or representatives must repay the loan according to the schedule above upon a title change. The one exception is the loan may transfer due to inheritance of low- or moderate-income family member beneficiary who will take occupancy upon death of program mortgagee. If the unit is rented to anyone for any reason within the lien period, the loan must also be repaid immediately.
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Overview of Administrative Process
You submit your completed application to the Program. The Rehabilitation Specialist reviews the application package and determines eligibility/ineligibility. Once your eligibility has been established, the Program will conduct a comprehensive house inspection. The purpose of the comprehensive inspection is to detail any health, safety or substandard code items that exist on your property. At least one major system has to be substandard in code for the property to participate in the Program. Please be prepared to have your property survey available for the inspection for the inspector’s review, and afterwards for municipal permit application requirements, if needed.
If the house was built prior to 1978, a lead paint risk assessment will also be performed by the Program. The homeowner will receive a copy of the lead paint risk assessment report.
The Program Inspector will create a Work-Write-Up and Cost Estimate for your home’s rehabilitation, based upon the comprehensive inspection and, if applicable, the lead risk assessment report findings. A copy of the Work Write-Up, along with a contractor list, will be provided to you for approval.
The Program will solicit bids by circulating bid packages to approved contractors. If you know of a contractor that would like to submit a bid on the job, they must contact the Program to request a bid package. The submitted bids will be reviewed by the Program Inspector and the homeowner. Generally, the lowest responsible bid from a qualified contractor will be chosen. The homeowner may select a contractor with a higher bid but must pay the difference between the contractor chosen and the lowest responsible bid. Your contribution of the cost difference is to be provided at the pre-construction meeting.
The Program is not guaranteeing to rehabilitate all the work listed in the work write-up. Code, safety, and health related work items identified by the program inspector will take precedent over non code work if elimination of work items is necessary. The homeowner has the option of contributing personal funds for any work that exceeds the funding limit. A preconstruction conference/loan closing is conducted at which time the construction agreement, program mortgage and mortgage note are executed. The contractor will obtain the permits (as necessary) and the construction phase will begin. Program personnel will manage the construction process which will include a progress inspection and a final inspection. The Municipality will pay the contractor directly upon program inspection approval of work completed. Program participants will adhere to the Program’s decisions. The contractor will close out construction permits; provide warranty information and case closeout documentation.
Homeowners’ Responsibility:
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All areas of the house must be readily accessible, uncluttered and clean. This is in anticipation of the Program Inspector and contractors’ need of proper and sanitary access for inspections and construction work progress. Please note, the Program has a right to decline assistance to houses with excessive unorganized belongings that would impede program inspections and construction progress, as well as decline assistance to houses with unsanitary deferred housekeeping.
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Program work including inspections, program loan closing and construction are conducted during normal weekday business hours. Please be prepared to plan accordingly.
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All household members must be disclosed in your application. If evidence of any additional undisclosed household members is discovered during case processing, the Program has the right to terminate your case for falsifying information and the municipality has the right to penalize you for related case administration cost. It is your responsibility to call the Program if you need clarification on household members.
When Repayment Occurs:
When recapture of the loan amount is required due to aforementioned conditions, 100% of the rehabilitation assistance is due and payable in its entirety at zero-percent interest. When a loan is repaid, the mortgage is canceled, and the lien is removed from the property. Any recaptured funds will be placed in a Revolving Loan Fund designated for the continuation of housing rehabilitation within the Township of Mount Holly.
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Additional Information:
This is a Fair Housing and Equal Opportunities Program. For more information on discrimination or if anyone feels they are a victim of discrimination, please contact the New Jersey Division on Civil Rights at 1-866-405-3050 or http://www.state.nj.us/lps/dcr/index.html.
If you have any further questions, please contact Community Grants, Planning & Housing, LLC, Program Administrators, Monday through Friday between the hours of 9:00 A.M. and 5:00 P.M. at (609) 664-2769 ext-9.
This program is sponsored by the Township of Mount Holly
Financial assistance for the housing rehabilitation program is made possible by a grant from the N.J. Dept. of Community Affairs, Division of Housing and Community Resources, Small Cities Community Development Block Grant Program, Governor Mikie Sherrill and Commissioner Jacquelyn A. Suárez. Funding for the State’s CDBG program was provided by a grant from the U.S. Dept. of Housing & Urban Development, State Community Development Block Grant Program.