January 8, 2014

Community Housing Improvement Program Applications Being Accepted

CHIPClermont County has received a grant from the Ohio Development Services Agency (ODSA), Office of Community Development, to assist qualified applicants residing within Clermont County with their housing needs. Funding is provided by Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) dollars.

On January 13, 2014 the Department of Community and Economic Development will begin accepting applications for the Community Housing Improvement Program (CHIP).  Applications will be accepted through February 28, 2014. Funding priority is determined by the program guidelines, which include household income, the priority rating of your home, your housing needs and availability of funds.

These funds are available to Low and Moderate Income Households who do not exceed the Maximum Income Limits (see chart below) for the following activities:

Private Owner Rehabilitation (POR)
Private Owner Rehab is a 0% interest, 85% deferred/declining forgivable loan with a term not to exceed 5 years.  The remaining 15% is a permanent lien and would not be due unless the homeowner vacates the home or transfers the property to another person. All loans must be secured through the use of a mortgage lien recorded on the property for the length of the affordability period.

This program provides funds and technical support to home owners to correct systems that are below standards — Eligible items may include but are not limited to: repairs to foundations, roofs, gutters, electrical upgrades, plumbing, furnaces, hot water heaters, insulation, windows, doors, siding, accessibility improvements and lead-based paint abatement.

The Private Owner Rehab loans are for home repairs that range from $8,000 to $30,000 and in special cases requiring lead hazard control procedures, up to $35,000.

Home Repair
The Home Repair Program provides a 0% interest, 100 % deferred/declining forgivable loan with a term not to exceed 2 years. All loans must be secured through the use of a mortgage lien recorded on the property for the length of the affordability period.

This program is limited to repair or replacement of 1 to 2 systems that effect the occupant’s health and safety and/or structural integrity. Eligible items for this program may include 1 to 2 of the following: emergency repairs, handicapped accessibility, tap-ins, well and septic repairs or replacements, lead-based paint abatement, roof, gutters, electrical upgrades, furnaces, plumbing, hot water heaters, & insulation.  Home repair funding will not exceed $8,000.
For home repair and POR projects, applicants must be the owner of the home and occupy the home as a permanent residence.

Down Payment Assistance (DPA) and/ Rehabilitation
Deferred loans are available to qualified applicants for the purchase of single-family dwellings. A qualified applicant should meet the following minimum threshold requirements:
*ability to meet the minimum credit requirements of loan underwriting;
*home to be purchased must be vacant or owner-occupied;
*purchase price of the home cannot exceed the median purchase price as established periodically by HUD and FHA mortgage limit which is $132,000 in Clermont County;
*monthly housing expenses, after closing, will not exceed 30 % of gross monthly income;
*ability to contribute at least $500 of the purchase price; and
*applicants must complete a Homebuyer education class prior to purchase.

Limits of Assistance:
The maximum value of a home to be assisted will be $132,000 which is the HUD 203(b) Limit for Clermont County. Maximum Amount of Assistance for DPA:  $7,000 or 10% of purchase price, whichever is less.

For Homeownership projects, the direct subsidy (DPA-down payment assistance) and the rehabilitation assistance are considered two separate activities. More than one mortgage document may be recorded if combining DPA and rehab activities.

If you are determined income eligible, a rehab specialist will visit your home to determine if it is an eligible project within the CHIP guidelines.  Completion of an application or review of your home does not guarantee funding.

Emergency Monthly Housing Payments / Homelessness Prevention:
A 100% grant program that provides funds on an emergency basis to lower-income households in order to help prevent a household’s inability to pay housing related costs from becoming a crisis, such as eviction, foreclosure or utility disconnection.  Limited financial assistance over a period of up to three consecutive months is made available to provide such items or services as food, clothing, rent, security deposits, mortgage payments, and utility payments.

Do I Meet Income Limits?
You must meet the Low to Moderate Income Guidelines – Listed in the chart below are the maximum (Gross) income limits per household size. Maximum limits are 80% of area median income.

FY 2013 – HUD Income Guidelines
Size of Household:      1 Person     2 Person     3 Person      4 Person    5 Person     6 Person     7 Person     8 Person
Maximum Income:    $38,500     $44,000     $49,500       $54,950     $59,350      $63,750     $68,150      $72,550

Target Area:
The Clermont County Housing Advisory Committee has determined a need for a targeted area for neighborhood improvements through the CHIP program for FY2013. This means that a portion of the County’s FY2013 grant will go towards Home Repairs and Private Owner Rehabilitation projects in Goshen Township.

For More Information:
Applications can be obtained by calling 513-732-7125 or visit “Community Housing Programs” at http://www.clermontcountyohio.biz/chip.aspx

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