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FY 2010 CHIP Grant
The City of Wadsworth
received a FY2010 Community Housing Improvement Program (CHIP) Grant in the
amount of $500,000. The grant funds will
be used for private (owner-occupied) rehabilitation and home repair activities;
downpayment assistance and housing rehabilitation for the purchase of an
existing house. The City will also initiate
an Emergency Monthly Housing Assistance Program with the CHIP funds. This program provides financial assistance to
homeowners in order to prevent foreclosure and to renters in order to assist
with rental costs.
Private Rehabilitation will only
be available to applicants living in the designated target area, which is part
of Census Tracts 4173-002 and 4172-004. See Target Area Map. All other activities will be available
on a citywide basis.
A description of the how the various programs, what activiities are available in each program and income eligibility requirements can be found in the Community Development Bulletin. A brief summary of the CHIP programs are noted below.
Private (Owner-Occupied) Housing Rehabilitation
The city estimates providing assistance to rehabilitate seven (7) owner-occupied dwellings which are located in census tract/block groups 4172-004 & 4173-002 (see Target Area
Map). The average cost of rehabilitation is estimated to be $32,000 per unit (if lead-based paint hazards do not have to be addressed) and $37,000 if lead-based paint hazards are involved. The purpose of this program is to correct structural, heating, plumbing and electrical system deficiencies that are determined to be building code violations. The rehabilitation will be done to standards developed by the Ohio Department of Development's Office of Housing & Community Partnership (OHCP).
Applications for private rehabilitation will be taken until January 31, 2011. All applications will then be ranked based on need and household income level. Every applicant will be notified in writing of their status. Work will commence on the first 3-4 units around March or April 2011 and work on the remaining units will start in autumn 2011.
Assistance is provided in the form of an interest-free "deferred loan". The amount of the rehabilitation loans is "forgiven" (eliminated) by 17% each year for a period of five years, provided that the owner-occupant remains in the dwelling and remains the owner of record. At the end of five years, 15% of the initial loan will remain as a lien on the property. This amount may be paid back to the City anytime after the five year period. Alternatively, the applicant may choose not to repay the 15% but allow the lien to remain on the property until such time that the property is sold or the title is otherwise transferred to another party. No interest is charged on the remaining 15%, no matter how long it remains unpaid.
Click FY2010 CHIP - Application for Owner Rehabilitation to download an application.
Private Rehabilitation applicants must also complete and return a signed original of the FY2010 CHIP - Dispute Resolution Policy along with the completed application.
Home Repair
This activity is available to owner-occupants located anywhere in the city. Funds are available on a first-come, first-served basis and are in the form of a grant (no repayment required). The purpose of this program is to repair one or two code violations that need immediate attention, such as furnace & roof replacement. The City estimates providing assistance to eight (8) applicant. The average cost per dwelling is $5,000 and the maximum that can be spent on any home is $8,000 if painted surfaces are not disturbed. If painted surfaces are disturbed, lead-based paint hazard mitigation comes into play and the maximum amount that can be spent on repair activities is reduce to $4,999.00.
See FY2010 CHIP - Application for Home Repair to download an application.
Home Repair applicants must also complete and return a signed
original of the FY2010 CHIP - Dispute Resolution Policy along with
the completed application.
First-Time Homebuyer Downpayment Assistance & Rehabilitation
This activity will assist two (2) applicants in purchasing and rehabilitating a home within the City limits. The program provides downpayment assistance of 10% of the home's purchase price (up to a maximum of $7,000) and rehabilitation to correct building code violations. The average amount of assistance per unit (downpayment & rehabilitation combined) is estimated at $27,750.
This activity operates similar to the private rehabilitation activity, in that assistance is in the form of an interest-free, deferred loan of which 85% is forgiven over time. If the amount of assistance provided is $15,000 or less, the loan is "forgiven" by 17% per year for five years. If the amount of assistance exceeds $15,000, the loan is "forgiven" by 8.5% per year for ten years. At the end of the "forgiveness" period, 15% of the loan will remain as a lien on the property, which may be paid back or left on the property until such time the property is sold or title is otherwise tranferred to another party. The owner/applicant must own and reside at the property for the entire forgiveness period.
Emegency Monthly Housing Assistance
This activity will be used to assist approximately eight (8) household avoid foreclosure as a result of a emergency that prevents the household from making their housing related payments (such as mortage payments, utilities and property taxes). Through this activity, the city may be able to provide limited financial assistance, in the form of a grant (no repayment required), to cover such housing related expenseds for up to three months. The maximum amount of assistance for a household will be limited to $5,000. Applicants must be able to show the financial ability to continue making all housing related payments after the "emergency" situation is alleviated.
This activity is being administered by the Medina Metropolitan Housing Authority. (MMHA) For more information about the application process and eligibility requirements, please contact MMHA at 330-725-7531.
Eligibility Requirements for All CHIP activities
CHIP activites are limited to low and moderate-income residents, which are defined as those households earning 80% or less that the area's median income. See HUD Income Guidelines.
Dispute Resolution
The following policy shall apply to all applicants who receives assistance through a CHIP activity: FY2010 CHIP - Dispute Resolution Policy. All applicants for Private Rehabiltation, Home Repair and Downpayment Assistance-Rehabilitation must download, complete and return a signed original of this policy with their application.
APPLICATIONS THAT ARE ILLEGIBLE OR INCOMPLETE WILL BE RETURNED TO THE APPLICANT.
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