NEW HAVEN ANNOUNCES A NEW PROGRAM TO HELP FINANCE HOUSING ENERGY EFFICIENCY REHABILITATION IMPROVEMENTS
(10/29/2009) HAVEN- At a news conference today, Mayor John DeStefano, Jr. announced a new financial assistance program for residents to make energy efficiency home improvements for the purpose of providing safe, decent and energy efficient homes.
“This program will build off of the Livable City Initiatives (LCI) efforts to continue to strengthen and stabilize our neighborhoods” said DeStefano. A year and a half ago, the City launched the ROOF project (a partnership between LCI, the Community Loan Fund, Neighborhood Housing Services and Yale University) to prevent foreclosure by reaching out to all residents who had an adjustable rate mortgage and providing assistance. In April 2009 the City launched its Neighborhood Stabilization program to purchase and rehab foreclosed properties bringing them back to productive use. Over the past year the City’s community development corporation partners joined the collaboration to rehabilitate existing housing stock throughout the city to further our mission in stabilizing neighborhoods.
Some of the eligible improvements under this new program include: addressing housing code and health/safety issues, sealing cracks with weather-strip and caulk, insulating attics and walls, repairing windows and doors, replacing windows, repair furnace/replacement of furnaces and roofs, preventive maintenance, façade improvements (vinyl siding, painting, porch/stoop repair, wrought iron/wood railings, front/storm door, shutters and awnings.
The City will offer forgivable loans to Owner Occupants up to a maximum allowance of $25,000 ($10,000 for the Homeowner Unit and $5,000 each additional unit) which is a zero percent interest for 10 years. If in the first 5 years the property is sold, transferred or refinanced 100% of the allowance is due and payable back to the City. On the 6th anniversary date of the loan and each anniversary thereafter 20% of the allowance will be forgiven until the term expiration, however, if the Owner sells, transfers title or refinances the balance at that time of the allowance is due and payable. By allowing the loan to be forgiven over time encourages stability in our neighborhoods
The City also wanted to provide an incentive for renters in investor-properties to have the ability to benefit from this program so the City is offering very low interest loans to Investor properties (Non-Owner Occupant). Therefore, the program provides for a 50/50 match of funding going towards energy efficiency rehabilitation with a Maximum Loan Amount of $10,000.00 to be repaid monthly at an interest rate of 3% for a term of 10 years which loan must be secured by a second mortgage.
In order to apply homeowners must complete a post purchase homeownership counseling workshop with Financial Empowerment Workshops, LLC. Counseling services will include Financial Literacy, Financial Planning, Home Maintenance and Energy Efficiency, Home Emergency Repairs and Home Improvements, Fair Housing and Credit Laws, Landlord and Tenant Relations.
“As part of this program we wanted to take the opportunity to increase opportunities for financial counseling so we are providing this service free of charge and even those who may not be able to secure a grant initially will benefit in the long run” stated Kelly Murphy, the City’s Economic Development Administrator.
In order to qualify, a household must be income qualified in accordance with the US Department of Housing and Urban Development ‘s (HUD) income limits. The limit is determined in accordance with the applicable funding source but may not exceed 120% of the area’s median family income, adjusted for family size. In order for the property to be eligible, the residence must be in New Haven and a one to four family structure. The property must comply with all applicable Federal, State and local laws, and serve as the buyer’s primary residence.
“We want to be able to offer assistance to both the low, moderate, and middle income property owners across the City” said Cathy Carbonaro-Schroeter, Deputy Director, Livable City Initiative.
Interested residents are asked to contact the Livable City Initiative at (203) 946-7090 or www.cityofnewhaven.org.
Terms and Conditions:
• Owner of property located in the City of New Haven.
• Owner has received a counseling certification in the last three (3) months for one (1) post purchase homeowner counseling courses
• Household income must not exceed 120% of median family income for the New Haven/Meriden MSA, as adjusted for family size.
• Owner has equity to secure the Assistance Loan with no more than 95% debt to value ratio.
• All Applications will be considered, however, funding priority will be awarded based if in a Geographic Leveraged Neighborhood (i.e. other public and private investments, NSP target zones, multiple applicants from same street to increase impact and homeowner occupied structures).
• Loan funds are limited and the available on a first come, first serve basis in accordance with the funding priorities