Waukesha County CDBG Home Owner Rehabilitation Deferred Loan Program Program Guidelines

Purpose

The purpose of this loan program is to provide funds (up to $10,000) to very low to moderate income home owners (incomes at or below 80% of area median) in Waukesha County who wish to make modest repairs to their homes.

Eligible Households

Eligible recipients are households with a total income equal to or less than 80% of the area median income, adjusted for household size.

Eligible Properties

To be eligible, a property must be an owner-occupied, single-family attached or detached unit in Waukesha County. This includes condominium homes. The loan-to-value (LTV) ratio cannot exceed 110%. (LTV is calculated by dividing total mortgage balance(s) by assessed value.)

Eligible Repairs

Priority repairs include repairs to mechanical or structural elements that present an imminent health or safety risk, such as:

• Roofs
• Mechanical systems (e.g., furnaces and hot water heaters)
• Plumbing, water or water/sewer laterals in disrepair
• Windows in disrepair
• Foundations
• Siding
• Interior improvements to bathrooms and kitchens
• Accessibility improvements
• Other items that the program administrator determines pose or will soon pose a health or safety problem for the home owner

Loan Terms

Terms for loans made through the program vary depending on household income of the borrower, as follows:

• 0% deferred loans are made to households at or below 30% of area median income.
• 2% simple interest deferred loans are made to households between 31% and 50% of area median income.
• 4% simple interest deferred loans are made to households between 51% and 80% of area median income.

Repayment of the loan amount is deferred until one of the following events occurs:

• The property is sold
• Title to the property is transferred to another person or entity
• The property ceases to be the borrower’s primary residence
• The borrower obtains a cash-out refinance of the 1st mortgage

Minimum/Maximum Loan Amounts

$1,000.00/$10,000.00.

For more information, contact the following:

Debbie Narus, Project Manager
Wisconsin Partnership for Housing Development, Inc.
1320 Pewaukee Road, Room 320
Waukesha, WI 53188

Phone: 262-896-8170
Fax: 262-896-8510
Email: homerehab@wphd.org