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Residential Rehabilitation Program

Residential Rehabilitation Program offers housing assistance to single family and multi-family units in the target areas in need of safety and livability improvements.  Rehabilitation activity may include, but is not limited to, roof repair, furnace replacement/repair, window replacement, accessibility improvements, fire safety repairs, and code violation repairs  Qualified applicants may receive up to $15,000 per unit in loan assistance to use for emergency rehabilitation repairs.  Loans are repaid upon sale or refinance of home.

PRIMARY ELIGIBILITY REQUIREMENTS

  • Applicant cannot exceed income and asset limits as established by HUD (See Income/Asset Requirements)
  • No corporate or commercial entity is eligible.
  • The residence must be a single family (detached) or two to four family dwelling.
  • Investment properties are ineligible.  However, if a homeowner, who is income qualified, owns a property in the target area and his/her tenants meet the income guidelines, the homeowner may apply.
  • All taxes owed by applicant (including motor vehicle registered in Hamden) must be current at the time of the application.
  • The Town of Hamden does not discriminate on the basis of age, veteran status, race, color, creed, national origin, gender, gender identity or expression, or disability.

SECONDARY ELIGIBILITY REQUIREMENTS

  • The property must be covered by homeowner’s insurance (e.g., hazard, property, fire and liability) and flood if applicable.
  • Title to the property must be in the name of the applicant.
  • Loans are awarded once and only after five (5) years will an applicant be considered for additional funding.  Only one roof or heating system loan can be made on any given property.
  • Loan will not be used for repayment of loans, liens, attachments, judgments or other items.
  • All documentation for priority consideration must accompany application at the time of submission.  The Town will not be obligated to consider applications without required documentation.

LOAN AMOUNT AND REPAYMENT TERMS

  • The amount of assistance awarded to an applicant depends on the availability of program funds.  However, financial assistance will not exceed $15,000 per unit.
  • Financial assistance is granted in the form of an interest-free loan/mortgage lien.  There are no monthly payments.  The loan is only repaid upon sale or transfer of the property.
  • Loan amounts are subject to 0% interest rate.
  • Loans are secured via a second mortgage lien on the property, and may include attorney fees as may be paid by the Town.
  • The borrower may sell or otherwise transfer the property at any time provided:
    • The principal loan at the time of sale is repaid to the Town; or
    • The property is  transferred to a family member who must assume the balance of the loan in the event the Town of Hamden approves such transfer
  • The loan to value ratio on the property may not exceed 110%.  The loan to value is determined by dividing all outstanding liens by the appraised property value.

INCOME/ASSETS REQUIREMENTS

  • Income of all persons, related or otherwise living in the applicant’s household will be included in determining gross income.  Total income must not exceed 80% of the median family adjusted gross income (AGI) for the New Haven/Meriden MSA as adjusted for family size and illustrated below.

  • Income includes sources such as employment wages, unemployment wages, annuity, pension, disability payments, retiree social security payments, survivor social security payments, welfare, alimony, child support, military stipend, interest income, dividends from investments and savings, rental income, workers’ compensation, income from family, friends, roomers and boarders, and any other sources of income not mentioned.
  • Gross income shall be verified at time of application.  The primary determinant of such income is the most recent federal income tax return.  However, other documentation may be required.
  • The income of full-time students will not be included in the AGI provided documentation regarding such proof of status is submitted.
  • Only the following deductions will be allowed from the applicants AGI.
    • $500 for each minor child (18 years and under).
    • $500 for each elderly (62 years or over) or disabled household member.
  • Applicant’s liquid assets following approval must not exceed $20,000 in the aggregate.
  • Assets include but are not necessarily limited to:
    • Cash held in savings and checking accounts, safety deposit box, etc.
    • Trusts, except irrevocable trusts outside any family member’s control.
    • Equity in real estate or other capital investment (equity is determined by the current market value as determined by the Town of Hamden, less the unpaid balance of loan(s) secured by the property.
    • Stocks, bonds, treasury bills, certificates of deposit, money market funds.
    • Assets do not include approved and dedicated pension funds, IRAs, 401K, etc.
  • The applicant shall provide such documentation or verification of all items requested for processing the application.  The receipt of a signed application authorizes the Town to verify any information provided, including but not limited to credit history.  (Even though credit history is not a determinant for loan approval or denial)