[Editor's Note: The Municipality operates a Home Rehabilitation Program funded by the Department of Housing and Urban Development. Resolution 93-018, passed 3-1-1993, adopted revised and updated regulations for the program. These regulations are included in full in this chapter.]
[Res. 93-018, passed 3-1-1993]
The Penn Hills Rehabilitation Program is designed to assist low income residents maintain their home and property. The program is financed through Federal Community Development monies and is available to all residents who meet certain income requirements.
Depending upon family size and income, persons may be eligible for one of two programs. The 0% loan program is designed for lower income persons and offers the homeowner a 0% loan for the cost of repairs to the home. Persons not eligible for a 0% loan may qualify for the straight 6% loan program.
Eligible Items
Due to the overwhelming response to the program, applications are screened with priority given to the following:
A.
Roof
Roofs that are not sound, leak or are damaged in such a way that they cause health or safety problems.
B.
Furnace
Furnaces or any heating units that do not perform effectively.
C.
Electrical
Any wiring outlets or fixtures determined to be hazardous.
D.
Plumbing
Includes leaks in water supply and drain lines, or sewage problems.
Secondary repairs may include the following, depending upon the seriousness of the problem.
A.
Windows
Windows that are inseparable, or in other state of disrepair.
B.
Gutters-Downspouts
Gutters and downspouts which are rusted, falling away from the structure, or do not properly drain water away.
C.
Concrete
Any walkway or stairway that is badly cracked or heaving.
This is not restricted to the items listed above. Other repairs may qualify as determined by the Planning Department Director.
Eligibility Requirements
In order to qualify for the program, applicants must meet the basic eligibility requirements of:
1.
Owner/occupancy of the home.
2.
Family size and income limits as listed on the following table:
% Loan Program
6% Loan Program
Family Size
Income
Family Size
Income
1
$12,650
1
$20,250
2
$14,500
2
$23,150
3
$16,300
3
$26,050
4
$18,100
4
$28,950
5
$19,550
5
$31,300
6
$21,000
6
$33,600
7
$22,450
7
$35,900
8 or more
$23,900
8 or more
$38,250
*Maximum income ranges will be adjusted automatically upon the receipt of new income data from HUD.
Income
When submitting an application, homeowners must supply sufficient information to the Municipality to verify income. The following shall be determined to constitute income:
A.
Any monetary benefits resulting from employment or received from agencies, including, but not limited to, wages, pensions, welfare, unemployment compensation, Social Security, etc.
B.
Savings. 20% of any savings account totaling from, $5,000-$15,000 will be considered as annual income.
C.
Stocks/Bonds. Any dividends from stocks and/or bonds will be considered as income.
D.
Other Real Estate. Gross value will be considered as annual income for any real estate owned by the applicant, other than the residence of the applicant.
E.
Income from all persons whose name appears on the deed shall be used to determine eligibility.
F.
Income eligibility is based upon gross income of the applicants, and applies to all homeowners, including those individuals who may be self employed.
G.
The intent of the program is to assist low income homeowners in improving their property. Homeowners with total assets in excess of $15,000 will be considered ineligible regardless of other income.
Income Calculations
Before a 0% Loan is approved, the following method shall be used to determine if the applicant meets the income eligibility requirements:
A.
At the time of filing the application, the applicant shall supply information as to the amount of income earned during the previous 12 months.
B.
At the same time, the applicant shall be required to supply information to the Housing Coordinator which would aid him or her in projecting the amount of income for the upcoming 12 months.
C.
If both of these amounts meet the eligibility requirements as stated in the preceding table, the applicant will be deemed qualified for the program.
D.
In order to qualify, the applicant meat meet both tests of eligibility requirements.
E.
Persons 62 years of age or older who are retired, and on some type of fixed income, must only supply information which would aid the Housing Coordinator in projecting the amount of income for the upcoming 12 months. In this case, the applicant must meet only one eligibility test.
Amount
All homeowners within Penn Hills are invited to participate in the Rehabilitation Program. Those residents residing in Lincoln Park are eligible to receive a maximum amount of $12,000 to cover the cost of repairs. Residents living outside Lincoln Park are eligible to receive a maximum amount of $10,000 to cover the cost of repairs.
Should a situation arise where all bids exceed the permitted amount for repairs, the Housing Coordinator may authorize the award of the bid for an additional amount not to exceed $500. Should the cost exceed this limit, approval must be granted by the Mayor and Council.
Homeowners/applicants will be required to pay a $50 processing fee for all applications of less than $750. The processing fee will be paid by the Municipality for applications in excess of $750.
The income eligibility limits have been determined by the Municipality in accordance with Federal regulations. The limits listed in the table represent the maximum amounts an applicant can earn and still qualify. However, these limits are lower than those actually permitted by Federal regulations and there is some flexibility involved. The Housing Coordinator has the authority to process an application in which the income is higher than the program limits, but below Federal regulations.
Procedure
Applications are available in the Planning Department and must be submitted with a statement requesting desired repairs on the appropriate form which is attached to the application. All information has to be verified, i.e., employment income, Social Security, pension, welfare, VA benefits, etc. All applications shall remain confidential. All applicants shall submit, along with the application, the following information:
1.
Copy of the deed
2.
Copy of current tax statements
3.
Proof of income
Once the applicant is found eligible to receive a loan, the structure is inspected by the Rehabilitation Inspector. The Rehabilitation Inspector will prepare corrective action specifications of work required to correct code deficiencies.
The homeowner will then be instructed to get at least two and preferably three bids from contractors of his or her choice. Since the Municipality would like to assist as many individuals as possible, and funds are limited, the homeowner must accept the lowest acceptable bid as determined by the Municipality and, the homeowner, or must pay the difference between the low bid and the desired contractors bid.
Since the response to the program has been so great, it is necessary that applications be considered on a first-come, first-served basis. However, the nature of repairs requested will be compared with priority items as stated in this document. First-come, first-served status will be based upon the date the Rehabilitation Inspector receives contractor's bids.
Applicants whose tax statements are not current shall be deemed ineligible for participation in the program. If taxes are not current, but the applicant is on an approved payment plan to pay the taxes, the Housing Coordinator may consider the tax statements to be current and the applicant as meeting the eligibility requirement.
Applicants must be current on both real estate and wage taxes as well as sewer usage bills. Any other unpaid obligations to the Municipality must also be satisfied, with the exception of sanitary sewage liens. Applicants must either provide verification of the above or authorize Municipal officials to seek verification.
Applications shall be resubmitted if, prior to the closing, the application has been on file for three months or longer.
When the applicant has been deemed eligible for the program, a repayment schedule for the loan shall be instituted. The loan repayment plan is arranged through Pittsburgh National Bank and the applicant will be issued a loan payment book. The amount of monthly payment is determined by both the amount and length of the loan. The following table illustrates the maximum time periods in which loans shall be repaid.
Loan Amount (in dollars)
Number of Years
$0 to $2,000
3
$2,001 to $3,000
4
$3,001 to $5,000
6
$5,001 to $9,999
8
$10,000 to $12,000
10
The above table represents the maximum amount of time to repay loans: If the applicant wishes to repay the loan in less time, he is permitted to do so. No payment schedule, however, shall be less than $30 per month.
Regulations
Under normal circumstances the applicant will be required to address any existing code deficiencies when an application is submitted. These deficiencies will be noted by the Rehabilitation Specialist in preparing bid specification and loan documents. Homeowners will be required to correct all code deficiencies.
There are two exceptions to this rule. When an emergency situation occurs, the Housing Coordinator may authorize the loan for the amount needed to correct the situation without addressing code deficiencies An example of an emergency situation may be the need to replace an inoperative furnace or hot water heater.
A situation may occur when a home is in such disrepair that the allotted amounts will not be enough to correct all code deficiencies as well as other needed repairs. The Housing Coordinator may use his discretion as to the repairs to be undertaken to render the house as safe as possible and to protect the Municipality's investment.
Applicants who have been notified of, or in the process of having their property involved in a sheriff's sale, shall be determined to be ineligible for the Rehab Program. Between the time an application has been submitted, and the closing of the property occurs, the applicant has an obligation to inform the Municipality as to any change of circumstances which may affect the application.
Other
Other Fees. The Municipality may require the applicant to pay mortgage recording fees, a property report fee, and other miscellaneous fees that may be required.
Since this program is funded through the Federal Community Development Block Grant Program, all other pertinent rules and regulations established by the Department of Housing and Urban Development shall apply.
Whenever the policies and/or procedures of this Program create undue hardships or unforeseen problems of an applicant, the Municipality will consider a waiver of Program guidelines on a case-by-case basis. A waiver may include the determination that the applicant is eligible for additional financial assistance, or that additional improvements are eligible. All waivers are subject to the express approval of the Mayor and the Council.
Special Program for the Handicapped
A.
Provided homeowners otherwise qualify for low interest loan programs, an applicant who is handicapped or who has a member of the household with a handicap may qualify for a maximum grant of $2,000.
B.
Grant proceeds must be used solely to pay for the cost of physical improvements to the structure designed to benefit the handicapped i.e. ramps, specially designed bathrooms and kitchens, etc.
C.
Grant proceeds must not exceed 50% of the cost of total improvements to the structure.