A Mortgage, Mortgage Note and Construction Agreement will be executed at the time of the pre-construction conference for the value of the rehabilitation work to be done on the unit.  The mortgage is then recorded when the rehabilitation work is complete.  The mortgage effective date commences with the date of the signing of a satisfactory Final Inspection Form by the Cost Estimator/Specifications Writer.  

ELIGIBLE ACTIVITIES
In order to qualify for participation in the program, the condition of each home must be certifiable as "substandard."  In other words, one of the following major systems must be in need of replacement or substantial repair: roof, electrical, heating, plumbing or sanitary plumbing, weatherization, and/or structural.  

Funds may be used only for work and repairs required to make the unit standard and abate all interior and exterior code violations and any other related work or repairs, including drywall, masonry, flooring, minor carpentry and finishing and painting.  Additionally, the Program will provide for accessibility improvements for residents with disabilities. 

Luxury improvements, improvements which are cosmetic, and the purchase of free standing appliances, not including refrigerators or stoves, are prohibited under this program.  In addition, driveways, sidewalks, attached and unattached garages are also ineligible for assistance. 

APPLICATION PROCEDURES
Applications will be processed on a first-come-first-serve basis.   Applications which are received fully completed and accompanied by all necessary documentation will be assigned a sequential case number.  Assistance will be made available to applicants in case number order.  Required support documentation includes, but is not limited to the following:

<          IRS 1040 form for the past year for each household member who receives income from employment and is 18 years of age or over. 
<          Four consecutive pay stubs for the current year for each household member who receives income from employment and is 18 years of age or over.
<          1099 statement(s) showing Social Security/pension income for the past year.  
<          Copies of most current bank statements.        
<          Copy of current homeowner's insurance declarations page (not the policy or receipt).
<          Copy of your recorded Deed.  
<          Signed Eligibility Release form.
<          If applicable, a notarized statement of explanation of current status of any household member 18 years of age or over not receiving income.

WHAT HAPPENS NEXT?
Once the HRP has verified your income eligibility per the COAH Income Eligibility Limits, property tax status, and property ownership,  the house will be inspected for substandard systems.  At lease one code violation has to exist in one major system, and the house must require a  minimum of $8,000 in total code violation abatement costs for the house to be eligible for HRP's assistance. The initial inspection will be conducted by the local municipal inspector and will include an electrical inspection.  Upon confirmation of an existing code violation, the municipal inspector will certify the house as substandard and provide the HRP with a punchlist of code violations. A comprehensive property inspection will then be conducted by an HRP Program Inspector.  The purpose of the comprehensive inspection is to determine the work necessary to bring the property up to code.

The Program Inspector will create a Work-Write-Up and Cost Estimate for your home's rehabilitation, based upon the comprehensive inspection. A copy of the Work Write-Up, along with a contractor list, will be provided to you for approval.

The Rehabilitation Coordinator will solicit bids by circulating bid packages to approved bidding contractors.  If you know of a contractor that would like to bid on the job, they must contact the Rehabilitation Coordinator to request a bid package.  The submitted bids will be reviewed by the homeowner, the Cost Estimator/Specifications Writer, and the Rehabilitation Coordinator.  Generally, the lowest responsible bid from a qualified contractor will be chosen.  If the contractor you select a higher bid, you must pay the difference between the contractor chosen and the lowest responsible bid.  Your contribution of the cost difference is to be provided at the pre-construction meeting.

The  Program is not guaranteeing to rehabilitate all the work listed in the work write-up.  Safety and health code related work items identified by the program inspector will take precedent over non code work if elimination of work items is necessary.  Of course, the homeowner has the option of contributing personal funds for any work that exceeds the funding limit.  The Program personal will manage the construction process.  Program participants will adhere to the Program's decisions. Payments to the contractor will not be released until approved by a Program Inspector and the Homeowner.  

If you have any further questions, please contact Community Grants & Planning, administrators of the Housing Rehabilitation Program, Monday through Friday between the hours of 9:00 A.M. and 6:00 P.M. at 800-619-9979.