1 to 3 Owner-Occupied Unit Loans
General Rules & Terms Of Eligibility
- Deferred Title Transfer Loan Program
- Amortizing Loan Program
- Demolition Program
- Emergency Rehabilitation Assistance Program
- Abandoned/Board-Up Building Loan Program
- Garage Demolition Program.
- Self-Help Exterior Paint Program
- Diseased/Damaged Tree Removal Program
Deferred Title Transfer Loan Program
The Deferred Title Transfer Loan Program is designed to assist applicants whose income is 50 percent or less of the median household income for the Primary Metropolitan Statistical Area (PMSA) as determined by HUD. The Deferred Title Transfer Loan offers the applicant a loan for the total cost of the rehabilitation at zero percent interest with no monthly payments. When the property is sold or title otherwise transferred, the deferred Title Transfer Loan becomes due and payable. A mortgage will be taken in the full amount of the Deferred Title Transfer Loan.
Guidelines:
- Applicants must own a one to three family dwelling and must also occupy the property as their principal residences throughout the term of the loan.
- Applicant’s income must be at or below 50 percent of the PMSA income.
- Loans are limited to a maximum of $50,000.
- Eligible properties are limited to one to three unit owner occupied residences.
- All clients must meet the eligibility criteria, asset limitations, have good credit and have clear title. Applicants cannot owe any back taxes on the property nor have outstanding adverse encumbrances, judgments, or liens.
- The after-rehabilitation value of the property cannot exceed the median single family home value as determined by the City annually.
This program is subject to funding availability.
Amortizing Loan Program
The Amortizing Loan program will assist applicants whose income is between 51% and 80% of the median income for the Primary Metropolitan Statistical Area (PMSA). All loans are amortized, requiring equal monthly payments. Additional tax escrow payments may be required.
Guidelines:
- Applicants must own a one to three family dwelling and must also occupy the property as their principal residences throughout the term of the loan.
- Income limited to applicants between 51 percent and 80 percent the PMSA income.
- Loans will be amortized at a zero percent interest rate.
- Maximum loan term is limited to 20 years, or up to 50 percent of the income to expense ratio, whichever provides for a greater payment.
- Loans are limited to $50,000 for one unit and two unit residences.
- All clients must meet the eligibility criteria, asset limitations, have good credit, and have clear title. Applicants cannot owe any back taxes on the property nor have outstanding adverse encumbrances, judgments or liens.
- The after-rehabilitation value of the property cannot exceed the median single family home value as determined by the City annually.
This program is subject to funding availability.
Demolition Program
The demolition program was designed to eliminate residential one to three unit structures which are in such a state of disrepair that it constitutes a safety concern, and rehabilitation is not a viable option. This program offers most property owners, who cannot afford to demolish the structure, funds to eliminate that portion or all of the structure which is in violation.
Guidelines:
- Applicants must have incomes at or below 80 percent of the PMSA median income.
- Loans will be limited to a maximum of $15,000. The exact amounts will be determined by the scope of demolition work required.
- All clients must meet the eligibility criteria, asset limitations, and have clear title. Applicants cannot owe any back taxes on the property or have outstanding adverse judgments, encumbrances or liens.
- The City will conduct an appraisal and compile a proposed work list to determine the value and subsequent feasibility of any rehabilitation.
- Applicants whose income is at or below 50 percent of median income may qualify for a Title Transfer Loan.
- Applicants whose income is between 51 percent and 80 percent of median income may qualify for a zero percent interest Amortizing Loan with a maximum term of 20 years, or up to 50 percent of the income to expense ratio whichever provides for greater payment.
This program is subject to funding availability.
Emergency Rehabilitation Assistance Program
The Emergency Rehabilitation Assistance Program is designed to meet the immediate emergency needs of qualified homeowners. This program addresses only critical deficiencies in order to assure the health and safety of the applicant and to prevent further deterioration of the property.
Guidelines:
- Loans are limited to $10,000.
- Eligible properties are limited to one and two unit owner occupied residences, including condominiums.
- Applicants’ income cannot exceed 80 percent of the PMSA median income as established by HUD.
- Applicants must be unable to pay for the repairs, have clear title to the property, current property insurance and real estate taxes.
- A Title Transfer Mortgage and Note will be initially used until further verifications are received, after which the applicant will be reevaluated and be placed in the appropriate program.
- The after-rehabilitation value of the property cannot exceed the median single family home value as determined by the City annually.
This program is subject to funding availability.
Abandoned/Board-Up Building Loan Program
This Program is designed to allow purchasers of abandoned and boarded-up buildings the opportunity to obtain rehabilitation funds for building improvements once building ownership has been secured.
This program will assist owners in rehabilitating distressed housing, for the purpose of maintaining habitable housing stock and the elimination of blight conditions within the City. Eligible properties are those which have been abandoned and/or boarded-up for a period of more than six consecutive months.
Guidelines:
- Eligible properties are one and two unit residences located within the CDBG target area.
- Loans are limited to $50,000.00.
- After rehabilitation, the property must be occupied by households with incomes at or below 80 percent of the PMSA median income for a period of five years. In the event the property is sold by the recipient of the City loan, the property must be sold to a household whose income is 80 percent of the PMSA median income.
- Loans will be amortized at zero percent interest for 20 years.
- Eligible properties cannot exceed a 95 percent loan to value ratio. The applicant must submit a copy of a recent appraisal and proposed list of work items to be completed with the City’s funds.
- Rehabilitation items must include the correction of any present code violations as indicated by the prioritized categories (A thru D) in the One to Three Family Guidelines.
- Rehabilitation must be completed within one year from the execution of security documents. In the event the project extends beyond one year, the funds remaining to be expended will be amortized at one-half the 30 year Treasury Bond (as issued monthly) for 20 years.
- The after-rehabilitation value of the property cannot exceed the median single family home value as determined by the City annually.
This program is subject to funding availability.
Garage Demolition Program
This Garage Demolition Program was designed to eliminate residential garage structures that are in such a state of disrepair that they constitute a safety concern and repair is not a viable option. This program offers low-income owners who cannot afford to demolish the structure, funds to eliminate the structure and the existing slab or foundation. A new concrete slab that would be in conformance with the required off-street parking requirements would be installed. The slab would be installed so as to facilitate the erection of a new garage that the owner could construct at his/her own expense.
Guidelines:
- Applicants whose income is at or below 80 percent of median income.
- Loans will be limited to a maximum of $8000. The exact costs will be determined by the scope of demolition work required.
- All clients must meet eligibility criteria in a streamlined process. Applicants cannot owe any back taxes on the property or have outstanding adverse judgments, encumbrances or liens that would jeopardize the City loan if it were made.
- The City will conduct an evaluation of the garage to determine the necessity of the demolition.
- Applicants whose income is at or below 80 percent of median income may qualify for a zero percent Title Transfer Loan.
This program is subject to funding availability.
Self Help Exterior Paint Program
The Self Help Exterior Paint Program assists owners of residential properties by providing materials and supplies for exterior painting. Applications and material estimates will be provided by the Rehabilitation Division.
Guidelines:
- A grant totaling of up to $400 for materials and supplies for one, two or three family households.
- A grant totaling of up to $600 for materials and supplies for multi-family structures.
- The owner occupant of single and two-family dwellings income cannot exceed 80% of the PMSA median income.
- Multi-family buildings must be located within the CDBG target area and must have a current citation for exterior painting by the Property Standards Division.
This program is subject to funding availability.
Diseased/Damaged Tree Program
The Diseased/Damaged Tree Program was designed to eliminate trees that are diseased or in such a state as to constitute a safety concern. This program offers low income owners who cannot afford to remove the tree, the funds to do so.
Guidelines:
- Applicants must own a one, two or three family dwelling and must also occupy the property as their principal residences throughout the term of the loan.
- Applicants must have incomes at or below 80 percent of the PMSA median income.
- Loans will be limited to a maximum of $6,000.
- All clients must meet eligibility criteria in a streamlined process. Applicants cannot owe any back taxes on the property nor have outstanding adverse judgments, encumbrances or liens that would jeopardize the City loan if it were made.
- The City of Evanston’s Forestry Division will conduct an evaluation of the tree to determine the necessity of removal, assist in the securing of contractors and inspect upon completion of the removal.
- Applicants, whose income is at or below 80 percent of median income, may qualify for a zero percent interest Title Transfer Loan.
- The after rehabilitation value of the property cannot exceed the median single family home values as determined by the City annually.
This program is subject to funding availability.