McKinney Real Estate Housing Rehabilitation Programs

November 19, 2009 by · Leave a Comment 

McKinney Housing Rehabilitation

McKinney Housing Rehabilitation

Since the Economic Recovery Act, many towns and cities have been awarded funds by the Community Development Block Grant Program (CDBG) to preserve existing affordable housing and to assist low-moderate income homeowners in bringing their single family home dwellings up to stardard.  The CDBG program was initiated to revitalize neighborhoods and improve community development.  McKinney Home Owners are now eligbile for minor repair grants that require no repayment and 0% deferred loans up to $25,000 that carry a five year repayment term.  Below is a brief description of the home repair financial assistance programs available to home owners in McKinney.

McKinney Home Financial Assistance:

Applicants eligible for Housing Rehabilitation Funds may be qualified for one of the following programs offered by the City of McKinney.

Mckinney Home Repair Loans 

Financial assistance for major rehabilitation projects will be in the form of deferred loans as detailed below.  All applicants will be expected to reside in the house for five full years.  Should the applicant vacate the premises, all or a portion of the loan will be paid back to the City of McKinney, depending on the amount of time the applicant resides in the house after project completion.  The maximum loan is $25,000.00 however; a loan amount will cover only the cost of necessary repairs. Therefore, a loan may be for less than $25,000.00.  However, if change orders are necessary, the loan amount will be increased to the new contract total.

 *A deferred payment loan shall carry zero (0) percent interest and continue until the applicant has satisfied the conditions listed in the Deed of Trust and Real Estate Lien Note executed prior to the project start date.  There are no monthly payments on the deferred loan amount.  Deferred payment loans are secured by a lien on the property.  The term for a deferred loan is five (5) years.  If the property is sold or transferred before the lien period expires, the applicant will be credited 1/60th of the loan amount for every month of residency.  The credit is subtracted from the total loan amount to determine the unforgiven loan balance.  The unforgiven balance is owed and becomes due immediately. Contractor liquidated damages and incentive payments shall not be used to increase or decrease a property owner’s lien.  Any liquidated damages shall be paid directly to the City and will not reduce a property owner’s loan. 

McKinney Home Minor Repair Program          

In the case of a property needing minor repairs, the CDBG Office offers this program. Homeowners must meet income eligibility and ownership requirements. Eligible repairs include roofing, plumbing, and electrical systems.  The work will be completed by licensed contractors approved by the City.  The maximum amount for repairs will not exceed $ 12,000 and does not require repayment, nor will a lien be filed against the property.  When lead-based paint is present, and will not be disturbed, no more than $ 5,000 will be spent for these types of repairs.

McKinney Home Emergency Repairs 

When an immediate threat to the health or safety of an income-eligible homeowner exists, or a threat exists to the general public in the vicinity, an emergency waiver of the procedures may be approved.  An immediate threat includes such problems as loss of heat during cold weather, sewer leaks, water leaks, etc.  In some cases, the need for disabled accessibility may require an emergency waiver.   Such emergency waiver will permit the immediate expenditure of up to $5,000.00 to address the emergency threat to health and/or safety.  The Rehabilitation Inspector is authorized to approve the emergency expenditure.  Such emergency repair projects do not require repayment, nor will a lien be filed against the property.  If an applicant has been approved for the regular rehabilitation program and emergency situations arise before the project is underway, City staff may approve immediate expenditures for repairs.  All such emergency expenditures will count toward the $25,000 maximum loan.

If you are interested in learning more about financial assistance you may qualify for in McKinney to repair your home, contact one of our McKinney Realtors for more information.  Also, check out McKinney Real Estate to search properties and read up on the latest residential developments in McKinney.

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