DATE: September 24, 2019
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
Home Matters Residential Rehabilitation Program
Body
SUMMARY AND ACTION REQUESTED:
The Housing & Redevelopment Authority (HRA) to review and adopt proposed changes to the Home Matters Homeowner Rehabilitation Program.
BACKGROUND:
The City of Northfield utilizes Community Development Block Grant (CDBG) funds to maintain the existing housing stock through their Home Matters Residential Rehabilitation Program. The program allows income eligible homeowners to borrow up to $10,000.
The current Home Matters Residential Rehabilitation Program provides up to $10,000 in assistance to homeowners whose income is 80% or less of the Area Median Income (AMI) for allowed home repairs. Qualified improvements or repairs include:
* Roof & Gutter Replacement,
* Foundation repairs,
* HVAC systems (heating/AC),
* Electrical, and
* Plumbing.
Total Project Cost - $1 - $5000: Homeowner to contribute 50% of total project costs.
Total Project Cost - $5001 or more: Homeowner to contribute 33% of the total project costs.
Total loan/grant not to exceed $10,000 per property/family. Financial assistance is in the form of a zero percent interest, deferred loan which may be forgivable after 5 years of continued home ownership.
In 2018, four Northfield households received assistance totaling $18,905 for projects costing a total of $31,381.41. Staff is currently working on 2 applications for 2019. The City of Northfield has struggled to utilize CDBG funds in a timely manner and funds have been recaptured by the CDA as a result.
The City of Northfield currently has a CDBG fund balance of $31,584 for the residential rehab program.
ANALYSIS:
Due to the high cost of housing rehabilitation and stagnation of wages, low income households are finding it very difficult to finance even 33% of rehab costs. Overall rehab costs have gone up significantly, far ...
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