Loan and Grant Programs

Residential Property Rehabilitation Programs

Single Family Development Incentive Grant Program (SFDIG)

The Single Family Development and Rehabilitation Incentive Grant Program is offered to stimulate private single family home development and major renovation projects in accordance with NRHA design standards in designated neighborhood conservation areas. Single family developers and builders are eligible to participate in this program.

The following activities that support homeownership efforts, that may qualify for approval, include one or more of the following:

• Demolition of  blighted structures that result in the building of new single family homes on the cleared land and sold to homeowners as their primary residences.
• Rehabilitation of an existing historic home defined as a contributing structure in an officially designated historic area or  identified on the National Historic Register.
• Conversion to single family homeownership of a duplex or triplex where the resulting home will be sold to a homeowner as their primary residence. The conversion must result in one fee simple home.
• Conversion of a single family home from rental-market to homeownership where the homeowner will use the property as their primary residence.

The amount of the grant is limited as follows:

• Up to a maximum of $20,000 per structure plus up to $5,000 in matching funds for abatement activities. For demolition activities the amount is $20,000 per structure or the actual cost of demolition (whichever is the lesser) regardless of the number of homes developed on the site as a result of the demolition activities.
• The grant is deployed at the end of the development process and only when all criteria have been satisfied.

Requests for a SFDIG grant will be considered on a case-by-case basis and subject to funding availability.

Submission Requirements

For an application to be considered, the following must first be discussed with designated NRHA staff.

• A description of the proposed development plan and a detailed pro forma
• Project time line
• For new construction, if available, proposed preliminary site plan and building plans
• For renovations of existing homes provide preliminary scope of work write-ups and proposed floor plans or other appropriate drawings. All rehabilitations must include partial demolition to reduce the building to framing and foundation only
• Estimate of development funds leveraged with the Development Incentive Grant. The greater amount leveraged, the more weight given to the application.
• The designation of the house as affordable to a family below 80% of AMI, which typically means a sales price of approximately $165,000 for a three bedded 1600-1800 square foot house. More detailed information will be provided regarding this section during preliminary discussions with NRHA staff.
• Commitment to homeownership. The grantee must ensure occupancy of the property by a bona fide homeowner who will use the property as their principal residence. This requirement is waived for the rehabilitation of a significant historic property at the sole discretion of NRHA staff.
• All homeowners must be provided a one year warranty in addition to specific component and mechanic warranties.

Grant Review & Approval

Each development incentive grant request will only be reviewed after a complete submission package as outlined above has been received. Grant approval will be subject to funding availability. The determination of Development staff is final.

Disbursements

The Grant will be disbursed upon (1) a successful review of construction plans by NRHA staff (2) a review and confirmation of the partial demolition as prescribed and a final inspection for conformance with plan review (3) a certificate of occupancy being provided (4) there is evidence of occupancy by a bona fide homeowner who intends is to use it as their primary residence, and (4) for demolition activities the grant will also only be provided once all the above criteria have been met.

Equity Secure Program

Repair or replacement as needed of plumbing, heating, electrical, roof, structural systems and provide handicap accessibility alterations to achieve decent, safe, sanitary conditions up to a level of conservation standards, as well as eligible exterior aesthetic improvements.  To also include the additional cost for the reduction or elimination of lead based paint hazards identified on surfaces being disturbed during the prescribed rehabilitation.

Maximum Assistance

Up to $45,000 for rehabilitation.
Up to an additional $20,000 for lead controls directly associated with the rehabilitation.
Total $65,000  (Not to exceed regulatory limits).

Type of Assistance 

Due on Transfer Loan and Forgivable Loan, as applicable
(100% Public Funds  -  CD or HOME, as applicable and available)

Interest Rate

0%

Security Required

Deed of Trust in the amount of the total rehabilitation cost

Term

Due on Transfer Loan amount:  “As-If” less “As-Is” Appraised Value

Forgivable Loan amount:  Total rehabilitation cost less Due on Transfer

Loan amount (Forgivable Loan amount forgiven upon transfer)

Income Limits

Total household income ≤ 80% Area Median Income

Owner's Contribution

Pay closing cost (Estimated average $375)

Benefits

Provides a means for rehabilitation to achieve decent, safe and sanitary housing
Provides exterior aesthetic improvements
Property owner and neighborhood
Minimal use of public funds

Other Underwriting

Verifiable legal ownership and occupancy of the property

Household income must be sufficient, at a minimum, to pay all housing expenses

Mortgage payments, real estate taxes, and homeowners insurance payments must be up to date at the time of application and remain so during time of processing and closing

Property cannot be located in an APZ crash zone

Property insurance coverage sufficient to protect the value or total indebtedness, whichever is greater

Flood insurance required for ALL properties located within a flood zone (If applicable, flood insurance must be maintained until loan is satisfied)

Contract for needed repairs is awarded by the homeowner to a qualified contractor whose bid proposal falls within 10% (above or  
below) of the cost as estimated by NRHA

For more information about the programs NRHA has available, contact your neighborhood conservation specialist:

Joni Stahl
314-2087

 
Home Repair Program (previously known as Emergency Repair Grant Program)

Program Purpose

Up to $12,000
Up to an additional $2,500 for lead controls directly associated with the correction of eligible health and safety repairs. (Not to exceed regulatory limits.)

Type of Assistance

Due on transfer of loan.
Income Limits

80% Area Media Income

Owner Contribution

N/A

Qualified Repairs

Repair or replacement as needed of plumbing, heating, electrical, roof, structural systems and provide handicap accessibility alterations to achieve decent, safe, sanitary conditions.  To also include the additional cost for the reduction or elimination of lead based paint hazards identified on surfaces being disturbed during the prescribed rehabilitation.

Security Required

Deed of Trust in the amount of total repair cost.
Other Underwriting Criteria Required

Must be a City of Norfolk Homeowner

Verifiable legal ownership and occupancy of the property.

Household income must be sufficient, at a minimum, to pay all housing expenses.

Liquid assets must not exceed $12,000.

Mortgage payments, real estate taxes, homeowners insurance payments must be up-to-date at the time of application and remain so during time of processing and closing.

Property cannot be located in a APZ crash zone.

Property insurance coverage sufficient to protect the value or total indebtedness, whichever is greater.
Contract for needed repairs awarded by the homeowner to lowest qualified contractor whose proposal falls within 15% (above or below) of the cost as estimate by NRHA.

Applicant(s) are only eligible to obtain assistance once every five (5) years.

U.S. Department Of Housing And Urban Development
2013 Income Guidelines

Aesthetic Improvement Grant/Loan Program 

Program Purpose

To provide financial incentives to homeowners of residential property to undertake upgraded exterior improvements to enhance the aesthetic quality.

Maximum Assistance

Up to $5,000 per property, subject to funding availability

Funding Source

CDBG, CIP or other Public funds 

Rate and Term

Matching Grant/Loan

Key Features

Qualified improvements may include landscaping, fencing, exterior lighting, window shutters, architectural-grade roof shingles and exterior surface improvements, etc.
Establishes a certain aesthetic quality of properties within the Conservation Neighborhood

Underwriting Criteria

NRHA will determine project eligibility and qualified improvements

Property must meet all applicable code and conservation program rehabilitation standards to qualify

Property located within a 100 year flood zone and/or APZ crash zone can be assisted based on availability of CIP funds only

Applicant must provide owner, property and household information and a copy of their current property insurance policy

Real estate taxes  must be current

100% match required

Maintenance Agreement required

This is a one time, per property, per owner, grant