HOME OWNER REHABILITATION Dear Homeowner: Thank you for your interest in our rehabilitation loan program. Enclosed are the following: The APPLICATION for the loan program, including a checklist of items that must be received to process your application. A brochure providing additional information on the rehab loan program. Lead-based paint booklet (applicable if your home was built before 1978) Please complete these forms at your earliest convenience. In order to process this application, we will need the application materials to be as complete as possible. Once we have received your completed application, we will begin to process your loan request. Generally, it takes about 2 weeks to compile the information needed to make a decision about your loan request. The process will be extended if we do not receive a complete application from you. Please note, these funds are on a first come first serve basis. If the application information indicates that you are eligible for funds through Rock County, we will contact you to schedule a home inspection(s). The inspector will go over the items listed on your application as wanted repairs; he also will make note of any code issues he finds. These items are generally safety or structural items that need to be repaired. Any code issues MUST be addressed prior to any other rehab work being completed. After the Scope of Work inspection is completed, you will be provided with information on how to continue with the loan process. The Wisconsin Partnership for Housing Development, Inc. is a nonprofit organization that administers this housing rehabilitation loan program for Rock County and we are happy to provide assistance in the completion of the application or to answer any questions you might have about the program. Please contact me with any questions you may have. I look forward to assisting you with your housing rehabilitation needs. Sincerely, Lisa K. Kratz CFO/Director of Operations Wisconsin Partnership for Housing Development, Inc.
HOME OWNER REHABILITATION Rehabilitation Deferred Loan Program Guidelines Purpose: Eligible Households: The purpose of this program is to provide easy access to rehab funds for low to moderate income households who are in need of modest home repairs (not to exceed $24,999). Eligible recipients must have total household income equal to or less than 80% of the area median income adjusted by household size. 1 person 2 people 3 people 4 people 5 people 6 people 7 people 8 people 34,200 39,050 43,950 48,800 52,750 56,650 60,550 64,450 Eligible Properties: Owner-occupied, single-family attached or detached units (condominium). The property must be located in the cities of Brodhead, Edgerton, Evansville, and Milton the villages of Clinton, Footville, or Orfordville or in one of Rock County s towns. Property must not exceed HUD s after rehab maximum fair market value for Rock County. After rehabilitation value is calculated by taking current Fair Market Value from the tax bill and adding total of work to be completed (from bids). The maximum value after rehabilitation is: Rock County $143,000 Eligible Repairs: Loan Terms: Priority repairs activities include repairs to mechanical or structural items that present an imminent health and safety problem, such as: roofs mechanical systems (i.e., furnaces and hot water heaters) plumbing, water or water/sewer laterals in disrepair windows in disrepair foundations siding improvements to the interior of the home in bathrooms and kitchens any accessibility improvements items that Administrator determines pose or will soon pose a health or safety problem to the homeowner 0% deferred loan due upon sale or transfer of home or non-owner occupancy Maximum/Minimum Loan Amounts: $24,999/$1,000 Administrator: Wisconsin Partnership for Housing Development, Inc. Phone: 608.258.5560x27 Fax: 608.258.5565 Email: rockcountyrehab@wphd.org
HOMEOWNER REHAB PROCESS OVERVIEW AND CERTIFICATION The homeowner rehab program can provide the funds necessary to make required repairs on your home. This might include things like a new roof, a new furnace or hot water heater, new windows or doors. It is important that you understand the process and requirements related to the use of federal funds, because there are rules associated with use of this type of assistance. As long as you know what to expect, you can be assured that, once your project is complete, you will have a safe place to call home. Read the following information carefully so that you understand the general terms and conditions of participating in this program. Step 1: Complete program application The application requests information on your income and assets as well as information about your home. The Program Administrator will use the information from Step 2: Eligibility is determined the application to ensure that you are eligible for the program. Eligibility depends on your income as well as the value of your home, equity in your home, and whether you are current on taxes and your mortgage. If your income is too high (more than 80 percent of the county median income) the project cannot be approved. These are federal requirements and there is no ability to waive the income requirements. Step 3: Inspections of your home are completed to determine the work that is required. If your home was built prior to 1978, there will be a lead risk assessment to identify lead paint hazards in your home. Inspections provide the information needed to determine the work required to make your home decent, safe, and sanitary. These inspections may identify areas needed work that you did not expect. When federal funds are used, a home must be brought up to code. All this work must be completed when you use the loan funds you cannot pick and choose what is done. Once all the inspections are done, the Program Administrator will prepare an estimate of costs and you can decide whether to proceed. The Program Administrator may also decide that the project is not financially feasible. If a project cost is more than $50,000, the state staff responsible for the program must review and approve the project. IMPORTANT NOTE: Homeowners must understand that if their application is approved and work moves forward, a mortgage will be placed on your property for the amount of the construction work (plus some additional amounts for testing and inspections). This mortgage is in second position after your primary home loan and is a lien on your property. There are no monthly payments associated with this loan. The amount of the loan must be repaid when your home is sold or ceases to be your primary residence.
A scope of work is developed that provides a description of Step 4: Contractor Bids are obtained the work that to be done on your home that contractors will use to bid on your project. Not every contractor can perform work; contractors must have certain certifications and carry sufficient insurance to protect the homeowner s interest. In addition, the lowest bid is generally the one that needs to be accepted. Once the bids for work have been obtained, the cost of the Step 5: Loan Closing work to be performed is known. At this time you will sign documents that secure the loan. You will sign (1) a contract for the rehab work to be performed, (2) a mortgage that is recorded and which will specify that the loan for the work to be done on your home needs to be repaid if you sell your house or if the home ceases to be your primary residence, and (3) a document describing the terms and conditions of the loan being assumed. Step 6: Work is Performed After all these steps have been completed, work begins on your home. During the time the contractor is working on your home, you must agree that you will not complete any renovation of your home on your own. You are required to wait until the work of the contractors is completed and inspections have been done. Periodic inspections will be completed by the Program Administrator to ensure that the work being done includes everything that was specified in the contract. You will be required to sign off on any payments that are made to the contractor. You need to understand that you cannot ask the contractor to do any work in addition to that specified in the scope of work. If you have any issues with the contractor, the Program Administrator will help you work through these so that the project is completed on time and within budget. Once all the work on your home is complete, the Program Step 7: Project is Complete Administrator will schedule final inspections to ensure that all the work is complete, that the home meets codes, and that no health and safety issues are present in the home. You will be asked to sign a final payment request and then you can enjoy the changes in your home! Each year thereafter you will receive a request to verify the home is your primary residence you will need to provide that information for the length of the loan. If you decide to refinance your primary home mortgage, you will need to contract the Program Administrator so that they can agree to subordination. If you have any questions about this process, you should ask the Program Administrator. It is important that you understand the process before we proceed to process your loan. The program will help you make your home a safe and healthy place to live, and assist you through the process of selection and monitoring contractors. However, there are some important requirements when federal funds are used, which you should understand before you take out your loan to complete this work.
HOME OWNER REHABILITATION Application Checklist Applicant(s): Address: PLEASE FORWARD COPIES OF ALL APPLICABLE ITEMS LISTED BELOW: If not applicable, state N/A All 6 pages of attached application completed and signed 2 months of recent paycheck stubs in sequential order SSI, SSDI Award Letter (Must be for Current Year), if applicable Pension/Retirement verification (Must be for Current Year), if applicable Child support verification and 6 Months of Payments/Receipts (Must be for Current Year), if applicable 6 months checking bank statements 1 month current bank statement for savings account, money markets, IRAs, Certificates of Deposit, etc. (You MUST provide verification/statements for all household assets.) Copy of Homeowners Insurance Policy (Declaration page) Property tax bill showing Fair Market Value (Ag land may not have a FMV listed) *All property taxes must be current! Copy of most recent mortgage bill stating your current mortgage balance *Mortgage account must NOT show any late payments in the last 12 months
1 HOME OWNER REHABILITATION ELIGIBILITY APPLICATION Name: Street Address: City/Zip: : Home Phone: Business Phone: Email (optional): Home is located in: City Town Village of Home is located in Rock County: Yes No Year house built (approximate): Number of bedrooms: This information will not be used to discriminate against, exclude from participation in, or deny benefits to any applicant on the grounds of race, color, religion, sex, age handicap or national origin (optional). Ethnicity: Hispanic or Latino Not Hispanic or Latino Race: American Indian or Alaskan Native Asian Black or African American White Native Hawaiian or other Pacific Islander Other (specify): Do any members of the household have a physical disability? Yes No Are there any pregnant women or children under the age of 6 living in the home? Yes No Household members: (List all individuals living in the home, including self) 1) 2) 3) 4) 5) 6) 7) Name Relationship of Birth SS#
2 INCOME DATA APPLICANT CO-APPLICANT OTHER MEMBERS TOTAL Gross Pay/Commissions $ /month $ $ $ /month Business Income AFDC/Social Services Social Security Unemployment Pension/Disability Alimony/Child Support Other (Specify): TOTAL $ /month $ $ $ /month PRESENT EMPLOYMENT APPLICANT Company Name Employment From to Street Address Supervisor City/State/Zip CO-APPLICANT Company Name Employment From to Street Address Supervisor City/State/Zip OTHER EMPLOYMENT Company Name Employment From to Street Address Supervisor City/State/Zip EXISTING DEBT OF PROPERTY TO BE REHABILITATED Original Amount of 1st Mortgage $ Current Balance $ Name of Lender Street Address City/State/Zip List other mortgages or liens, including equity loans or lines of credit Original Amount $ Current Balance $ Name of Lender Street Address City/State/Zip
3 Are property taxes paid up to date? Yes No If no, Delinquent Amount $ home was purchased: Do you own other real estate property? Yes No If Yes, Street Address City State Zip Have you ever received other HOME, CDBG, or Lead Hazard funds for the rehab or purchase of your home? Yes No Briefly describe the repairs or improvements you wish to complete: I/we certify that all information supplied in this Eligibility Application, and all information provided relating to such application, is given for the purpose of obtaining a rehabilitation loan, and is true and complete to the best of my/our knowledge. Verification of information may be made from any and all sources. I/we agree to provide, upon request, documentation on all income sources to the Wisconsin Partnership for Housing Development, Inc., Rock County or the U.S. Department of Housing and Urban Development. I/we agree to comply with all terms, conditions and requirements as a condition of such loan, and understand that any willful misrepresentation may result in criminal prosecution. I/we certify the property for which we are requesting a rehabilitation loan is my/our primary residence. Signature Signature For more information call WPHD at: 608.258.5560 608.258.5565 (fax) Return completed Application and all applicable items on the Application Checklist to: Wisconsin Partnership for Housing Development, Inc. 121 South Pinckney Street Suite #420 Madison, WI 53703 Or email to: rockcountyrehab@wphd.org
4 HOME OWNER REHABILITATION BORROWER AUTHORIZATION I/We,, Applicant, and, Co-applicant, who reside at hereby authorize the release of all pertinent information to the Wisconsin Partnership for Housing Development, Inc. for use in determining my/our eligibility for a rehabilitation loan offered through Rock County. This authorization entitles: All financial institutions in which I/we have/had business transactions Places of employment Any other organization having access to pertinent information to release said information to the Wisconsin Partnership for Housing Development, Inc. when a written request is supplied along with a copy of this document. Signature of Applicant Signed Signature of Co-Applicant Signed
5 HOME OWNER REHABILITATION Confirmation of Receipt of Lead Pamphlet I have received a copy of the pamphlet, Renovate Right: Important Lead Hazard Information for Families, Child Care Providers and Schools informing me of the potential risk of the lead hazard exposure from renovation activity to be performed in my dwelling unit. I received this pamphlet before the work began. Printed Name of Recipient Signature of Recipient
6 HOME OWNER REHABILITATION Conflict of Interest Disclosure Do you have family 1 or business ties to any of the following people? YES NO Any employee of Rock County Any elected Rock County Official Any member of the Rock County Housing Authority Any member of the Rock County Planning and Development Committee Any employee of the Wisconsin Partnership for Housing Development Any Board member of the Wisconsin Partnership for Housing Development Signature of Applicant Signature of Co-Applicant 1 For these purposes, family includes: spouse, fiancée, children, children-in-law, brothers, brother-in-law, sisters, sister-in-laws, parents, parent-in-laws.