Agenda 11/27/2001 - Laserfiche WebLink

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VI. Ae these rent controls for the term of any lease signed after rehabilitation of the subject property. Investor-owners are required to maintain sufficient insurance coverage to replace or repair the rehabilitated unit should there be a fire or other disaster. Rental properties that become vacant during the five- to ten-year term must be rented within three months of vacancy or the loan will be due and payable. Extensions may be granted if the Housing Rehabilitation Coordinator is furnished sufficient evidence documenting that good faith efforts to rent the property were initiated immediately upon property availability and are on-going. During the term of the loan it is the responsibility of the investor-owner to notify the Housing Rehabilitation Coordinator immediately when the unit becomes vacant and to have the potential new tenant submit an application to verify income eligibility. The City of Martinsville's first priority is to rehabilitate owner-occupied single-family houses, followed by single-family rental properties, and lastly multi-family dwellings. Homes that are a threat to life or safety will be addressed first. Homes lacking indoor plumbing will be addressed second. FINANCIAL ASSISTANCE AVAILABLE Owner-Occupied: Forgivable Loan Income-eligible owner-occupants of the R.P. Thomas project area interested in housing rehabilitation assistance will be provided 50% of the rehabilitation cost as a 10-year forgivable loan and 50% as an amortized loan with a 10-year term at 0% interest. A lien will be placed against the property for the full amount of the rehabilitation assistance at the time of loan closing. However, handicapped accessibility improvements, lead-based paint abatement, and indoor plumbing installation, which are exceptions to the $25,000 base rehabilitation limit, will not be covered by the lien. The required monthly loan payment will be based on the household's ability to pay. Ability to pay shall be calculated by the Housing Rehabilitation Coordinator according to the latest methodology approved by DHCD. Should the household's ability to pay exceed the monthly payment needed to pay off the amortized loan, the household will be required to pay up to the ability-to-pay amount, reducing the forgivable portion of the loan by an amount equal to the difference. Should the household's ability to pay be less than the full monthly payment needed on the amortized loan, the unpaid balance of each payment shall be forgiven. Any ability-to-pay amount computed to be less than $25.00 per month shall be forgiven, and no payment required.