Loan and Grant Programs

---

---

Residential Property Rehabilitation Programs

Development Incentive Grant Program

The Development Incentive Grant Program is Norfolk Redevelopment and Housing Authority’s grant program created to stimulate private homeownership development in accordance with NRHA design standards and land use as outlined in the various neighborhood redevelopment and conservation areas. Both multi-family and single family builders and developers that satisfy the program criteria are eligible to participate in this program. This grant program is not available to support rental activities.

Qualified Activities Leading to Homeownership

• Demolition of a blighted structure
• Density reduction
• Rehabilitation of an existing structure
• Conversion of rental property to single-family homeownership or conversion of multi-family rental to condominiums for homeownership

Grant Specifications
The amount of the grant is limited as follows:

• For single-family housing - a maximum of $10,000 per structure
• For multi-family units - $5,000 per unit up to $50,000 per project

Submission Requirements

• Developer’s statement outlining the development plan
• Evidence of ownership or executed sales contract promising to close by a certain date
• Project time line
• Project pro forma outlining in detail sources and uses of funds
• Evidence of financing or commitment to provide financing by a recognized financial institution
• Proposed preliminary site plan and elevations for new construction (if available)
• Development team background and experience

Evaluation Criteria

• Satisfactory development plan
• Pro forma analysis and financial feasibility
• Value of the projected increase in property taxes to the city and the projected grant recovery period through increased real estate taxes
• Project time line
• Certainty of financing commitment
• Amount of development funds leveraged with the Development Incentive Grant
• Inclusion of affordable or workforce housing
• Proof of ownership or intent to buy
• In case of gap financing, determination that grant in necessary for proposed development to proceed
• Experience of the development team relative to the proposed project
• Compliance with neighborhood conservation plan standards and neighborhood pattern book

Grant Review & Approval
Requests for a DIG grant will be considered on a case-by-case basis and subject to funding availability. Each grant request will be forwarded to the DIG Review Board for their review and approval.

Contact:
Stephen Blair
314-4217

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 Grant 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

100% Grant; no repayment obligation

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

None

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 100 year flood zone and/or 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
2011 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