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| Monday, May 12, 2008 |
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LICKING COUNTY PLANNING COMMISSIONLICKING COUNTY HOUSING REHABILITATION LOAN PROGRAM
BACKGROUND
Despite the fact that Licking County has very good housing stock overall, the 1990 Census statistics provide some indications of the presence of conditions which would be considered substandard. For example:
Additionally, we find that approximately 25 percent of the housing units in Licking County are more than 50 years old, which increases the potential for substandard conditions such as outdated electrical, mechanical, plumbing, and other systems.
Indications of substandard housing conditions such as these are obviously most problematic when coupled with homeowners who are of low or moderate income. Typically such homeowners are least likely to be able to afford major repairs or needed upgrades to their homes to make them more liveable.
THE HOUSING REHABILITATION LOAN PROGRAM
One answer to the problems identified above has been the housing rehabilitation program which has been in existence for approximately 18 years. This program is administered by the Licking County Planning Commission for the Licking County Board of Commissioners using CDBG, USDA/RD, and HOME funds.
The housing rehabilitation loan program was established to assist low and moderate income households with rehabilitation and improvements to single-family, owner-occupied dwellings. Assistance is provided in the form of low interest, direct and deferred loans throughout Licking County (outside the city limits of Newark). This is a very popular program and there is generally a waiting list. As of the end of 1996, the program had provided over $3.2 million in loans to Licking County residents to repair their homes.
GENERAL PROGRAM REQUIREMENTS
Applicants for rehabilitation loans are qualified in terms of household income limitations, equity in the property (before and after rehabilitation), and other criteria. Applicants must demonstrate an acceptable credit record, and generally, the equity in the home after the rehabilitation must be greater than outstanding liens on the property. Two basic types of loans are provided:
Deferred loans do not require monthly payments from the applicant. Applicants eligible for deferred loans include households where the income is at or below 50 percent of median income; or housing expenses exceed 35% of gross household income; or other circumstances where the Community Development Advisory Commission determines that the loan should be deferred. Each year the loan is reviewed to determine that the applicant is still eligible for a deferred loan (i.e. income has not changed). If circumstances have changed, the loan may be converted to a direct loan. For the first five years, interest charges accrue at the four percent rate each year. No interest is assessed on a deferred loan after the first five years. As long as an applicant remains eligible according to the program requirements, the loan payments remain deferred. The loan must be re-paid when the house is sold or the title is transferred.
Direct loans require monthly payments over a specified number of years (usually 5-15), depending upon the loan size. All applicants who have household incomes between 50 and 80 percent of the median income are eligible for direct loans.
LICKING COUNTY OWNER-OCCUPIED HOUSING REHABILITATION AND EMERGENCY HOME REPAIR PROGRAMS
A low-interest loan through the licking county planning commission secured by a mortgage on the property. Loan payments may either be direct (repaid over 5-20 years) or deferred (postponing payment until the house is sold, left in an estate, vacated, converted to rental property, title transferred or homeowner's income rises to the point that monthly payments are feasible). Eligibility is determined on a case-by-case basis.
APPLICANTS
ELIGIBLE REPAIRS and REPLACEMENTS
FOR MORE INFORMATION CONTACT BETH JONES AT 740-349-6938 | |||||||||||||||||
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