The City of Walnut is in the process of applying for a CDBG Housing Grant on behalf of a City of Walnut Owner-Occupied Housing Rehabilitation Program.
What is the Purpose of the Program?
The purpose of the program is to assist low and moderate-income persons in making needed repairs to their homes to bring the home into compliance with the Rehabilitation Standards and to improve the overall housing stock in the community. Typical repairs may include structural repairs, roofing, plumbing, mechanical, siding, painting, wiring, etc.
How can a Homeowner Qualify? Some of the conditions reviewed for eligibility are:
1. The property must be located within the City limits and must be a single-family structure.
2. The property has to be in such a condition to allow for inspections and required work. The property must be reasonably clean, sanitary and uncluttered to allow required access for inspections and contractors to complete the required work.
3. Cost estimates, and/or actual bids, must verify cost eligibility. Some properties may be considered "cost prohibitive" for rehabilitation.
4. Mobile homes are not eligible unless they meet manufactured home criteria requirements. Please contact the City of Walnut for criteria.
5. The applicant must be an owner-occupant, or purchaser-occupant, and must have resided in the dwelling for six months prior to the date of application.
6. Property taxes, special assessments, mortgage payments (if applicable), and utility payments must be current and paid-to-date.
7. For the term of the mortgage with the City, the homeowner must purchase and maintain fire and extended coverage insurance in an amount equal to, or greater than, the current assessed value of the property (land and buildings). The City shall also be named on the insurance policy as an additional Mortgage Holder.
8. Properties being purchased under Contract Sales are not eligible.
9. The applicant's annual gross total household income must be below income limits shown, based on the number of persons in the household:
Number of Persons Income Limits
1 person $40,750
2 persons $46,550
3 persons $52,350
4 persons $58,150
5 persons $62,850
6 persons $67,500
7 persons $72,150
8+ persons $76,800
What Type of Assistance is Offered? The City can provide assistance in the form of a deferred payment loan to make needed repairs for a qualified applicant. Assisted homeowners will be required to sign a Mortgage Lien/Promissory Note for a five-year period. If the owner occupies, and there is no sale or transfer or abandonment of the house for five years, there will be no repayment obligation. A sale, transfer, etc., prior to the five years would likely require at least a partial repayment of the grant funds. The Mortgage Lien/Promissory Note will be recorded as a lien against the property. Homeowners need to be aware that after the Mortgage Lien has been recorded, future re-financing of their first-position mortgage loan, or financing of a mortgage loan may require first position by that mortgagor, and a subordination request would need to be presented for review and authorization through the City Council.
If you are interested in participating in the Housing Rehabilitation Program, please contact City Hall at 712-784-3443.