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HomeMy WebLinkAbout2016 RRP Application Packet RESIDENTIAL REPAIR PROGRAM (RRP) APPLICATION PACKET List of attachments: Fact Sheet Frequently Asked Questions Preferred Terms Income Guidelines Application Instructions Loan Application Authorization for the Release of Information Certification of Non-Filing of Federal Income Tax Return Certification of Non-Filing of State Income Tax Return Verification of Mortgage or Deed of Trust Notification-Watch Out For Lead-Based Paint Poisoning County of Hawai'i Office of Housing and Community Development 1990 Kino’ole Street, Suite 105 Hilo, Hawai'i 96720-5293 V/TTY: (808) 959-4642 Fax: (808) 959-9308 7176rbla 09/15/16 COUNTY OF HAWAI'I OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT 1990 Kino’ole Street, Suite 105 HILO, HAWAI'I 96720-5293 V/TTY: (808) 959-4642 FAX: (808) 959-9308 RESIDENTIAL REPAIR PROGRAM (RRP) FACT SHEET PURPOSE: To provide low cost loans to benefit low-and moderate-income homeowners in the County of Hawai'i to repair the dwelling unit that they occupy as their primary residence. PROGRAM FUNDING: U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant Program. APPLICATION FEE: 1. There is a $50.00 processing fee. APPLICANT QUALIFICATION: 1.Total adjusted gross income of all persons living in the household may not exceed the attached household income limit schedule. (See attached schedule) 2. Applicant must be owner/occupant for at least one year prior to filing a loan application for proposed repairs to the dwelling. A rental unit or a portion of a owner/occupied unit that is used for rental purposes is not eligible for rehabilitation assistance. DWELLING QUALIFICATIONS: 1. Single family dwelling owned in fee simple. 2. The dwelling must be a completed residence prior to the owner applying. 3. The residence must meet equity underwriting requirements. 4. After repairs, the dwelling must be safe, sanitary and decent. 5. Dwelling may not be located in the Flood Hazard Area unless all flood hazards are mitigated under Executive Order 11988, Flood Plan Management. 6. Dwelling must be insured (homeowners insurance). The applicant and dwelling must meet all program underwriting requirements as documented in the RRP Administrative Rules. A copy of the Rules is available at www.hawaiicounty.gov/office-of-housing or by contacting the Office of Housing and Community Development. LOAN PROGRAM: Loan Amount: Minimum $2,500 15 year term Maximum $25,000 15 year term Interest Rates: 3% Simple Interest **Term and Principal amount of loan will be due and payable upon transfer of ownership of the property, for any reason, such as sale, inheritance, condemnation or foreclosure.** EXAMPLES OF ELIGIBLE REPAIRS: Roof repairs Termite Treatment Connecting to Sewer System Updating faulty electrical wiring and or plumbing Solar water heating EXAMPLES OF INELIGIBLE REPAIRS: Construction of a New Structure Completion of a incomplete structure or unfinished improvements Construction on an unpermitted structure COUNTY OF HAWAI'I OFFICE OF HOUSING AND COMMUNTIY DEVELOPMET RESIDENTIAL REPAIR PROGRAM (RRP) FREQUENTLY ASKED QUESTIONS 1. Q. WHAT IS THE RESIDENTIAL REPAIR PROGRAM? A. The Residential Repair Program (RRP) was established by the County of Hawai'i to make low-interest loans available to eligible property owners who are interested in repairing and improving their primary residence. 2. Q. WHAT KINDS OF REPAIRS OR IMPROVEMENTS CAN BE MADE WITH THE LOAN? A. The LOAN can be used to repair and correct deteriorated and hazardous conditions on the property such as damage caused by termites or wood rot, leaky roof and drain pipes, abatement of lead based paint, faulty electrical wiring and plumbing, hook up to County sewer lines, termite treatment and installation of a solar water heating system. The LOAN can also be used to accommodate the special needs of disabled household members. 3. Q. IS THERE A FEE TO APPLY? A. Yes, there is a $50.00 processing fee. A personal check, cashier’s check or money order must be submitted with the completed application. Pursuant to Section 2-134, as amended, of the Hawai'i County Code, there shall be a fee charged for a returned check due to insufficient funds. If you do not qualify you will be refunded your $50.00 processing fee. 4. Q. WHO IS ELIGIBLE TO APPLY FOR A LOAN? A. Owner-occupants whose total adjusted gross income of all persons living in the household is within the income schedule listed below are eligible. The current maximum income limits for owner-occupants, by number of persons in household, are as follows: INCOME LIMITS* (Effective March 29, 2016) 1 2 3 4 5 6 7 8 $39,000 $44,600 $50,150 $55,700 $60,200 $64,650 $69,100 $73,550 *Income limits are adjusted annually 5. Q. ARE OWNERS OF PROPERTIES WITH RENTAL UNITS ELIGIBLE FOR A LOAN? A. No. Only owner-occupants whose household income is within the income schedule are eligible. 6. Q. ARE SINGLE FAMILY DWELLINGS ON LEASE LAND ELIGIBLE FOR A LOAN? A. No. Only fee simple, owner-occupant dwellings are eligible. 7. Q. ARE SINGLE FAMILY DWELLING ON DEPARTMENT OF HAWAIIAN HOME LANDS ELIGIBLE FOR A LOAN? A. No. Single family dwellings on Department of Hawai'i Home Lands (DHHL) are not eligible. 8. Q. WHAT MUST A HOMEOWNER REPAIR AND CORRECT UNDER THE LOAN PROGRAM? A. To insure that the property is safe and sanitary, all deficiencies cited by the County’s RRP inspector must be repaired and corrected. 9. Q. HOW MUCH MONEY CAN A HOMEOWNER BORROW? A. The minimum LOAN is $2,500 the maximum LOAN is $25,000 for each dwelling unit for owner occupied properties. 10. Q. CAN I APPLY FOR MORE THAN ONE LOAN? A. No. Only one LOAN per household. 11. Q. WHAT KIND OF INTEREST RATE WILL BE BORROWER BE PAYING? A. The interest rate is set at 3%. The LOAN is deferred for 15 years or until first transfer of title. If the homeowner applies for a mortgage loan or a home equity loan, the LOAN amount must be repaid in full. 12. Q. WHAT ARE SOME OF THE SERVICES AVAILABLE TO HOMEOWNERS? A. The County’s RRP inspector will inspect your property. The County will prepare a Priority List of Repairs which will outline the deficiencies cited that must be corrected. 13. Q. HOW IS THE LOAN SECURED? A. LOANS will be secured with a Mortgage and Note on the property. 14. Q. WHERE CAN A HOMEOWNER OBTAIN MORE INFORMATION? A. The County of Hawai'i Office of Housing and Community Development, 1990 Kino’ole Street, Suite 105 Hilo. The phone number is 959-4642. ** The term of the LOAN may be extended at the end of 15 years if the borrower remains qualified for such a LOAN. **LOANS are subject to availability of funds. RESIDENTIAL REPAIR PROGRAM PREFERRED TERMS The preferred terms shall be as follows: Preferred Terms: THIRTY PERCENT (30%) of the principal balance of the Loan, may be forgiven as a grant to an Applicant if he/she or any member of the household is a member of any one of the following groups: 1. Elderly person 62 years of age or older. 2. Disabled person as defined by 24 CFR 5.403 when the condition is verified by appropriate diagnostician such as physician, psychiatrist, psychologist, therapist, rehabilitation specialist, or licensed social worker, using the HUD language as the verification format. All legal owners shall be required to sign a Mortgage and Note and a Grant Agreement that spells out the terms and conditions of the Loan and Grant. 2016 MEDIAN FAMILY INCOME: $57,600 EFFECTIVE: March 29, 2016 INCOME GUIDELINES HOUSEHOLDLOW-INCOME SIZELIMITS 139,000 244,600 350,150 455,700 560,200 664,650 769,100 873,550 FAMILY SIZE ADJUSTMENT: Four each person in excess of eight, 8 percent of the four person base should be added to the eight-person limit. (For example, the nine-person limit equals 140 percent \[132 + 8\] of the relevant four-person income limit.) All income limits are rounded to the nearest $50 to reduce administrative burden. COUNTY OF HAWAI’I OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT RESIDENTIAL REPAIR PROGRAM INSTRUCTIONS FOR COMPLETING THE APPLICATION FORM: - Type or print information using black ink. - Sign and date the application. - Fill in all applicable information. - Sign and date Authorization for the Release of Information DOCUMENTS TO BE SUBMITTED WITH THE APPLICATION: - Copy of three (3) months of most recent employment pay stubs for allhousehold members. - Copy of most recent documentation of any other income for allhousehold members (such as: Social Security, Disability, Pension, Public Assistance, Life Insurance Payments, Living Allowances, etc.) - Copy of six (6) months of statements for checking accounts, the most recent bank statement for savings accounts and any other assets for allhousehold members (Such as: IRA, Mutual Funds, Annuities, Stocks, Bonds, etc.) - Copy of Deed. - Copy of most recent Real Property Tax Assessment. - Copy of most recent Mortgage Statement - Copy of current homeowners’ insurance policy. - Copy of most recent Federal Income Tax Return. - Copy of most recent State Income Tax Return. - If you did not file a Federal and/or State Income Tax Return, complete the attached Certification of Non-Filing of Federal and/or State Income Tax Return, have it notarized and submit it with the completed application. - Personal check, cashier’s check or money order for $50.00 payable to “Director of Finance”. RETURN THE APPLICATION BY MAIL OR IN PERSON TO: County of Hawai`i Office of Housing and Community Development 1990 Kino’ole Street, Suite 105 Hilo, Hawai’i 96720-5293 If you need any other information or assistance regarding the application, please feel free to contact our office at (808) 959-4642.