HOUSING REHABILITATION PROGRAM

The Town of Windsor, through its Housing Rehabilitation Program, offers financial and technical assistance to eligible property owners for the rehabilitation of residential properties throughout the Town. The intent of the program is to preserve the Town's housing stock, help provide decent, safe housing for low/moderate income persons and to encourage neighborhood reinvestment. Funding for the program is provided through the federal Community Development Block Grant - Small Cities Program which is administered by the State of Connecticut's Department of Economic & Community Development and, at the local level, through the Town of Windsor's Office of Community Development (OCD).

Eligibility for the Housing Rehabilitation Program is based on household income. More particularly, household income must be at or below 80% of the area median in order to qualify. In the case of rental property it is the tenant's income which is used to determine eligibility. The Town of Windsor defines income in accordance with "Section 8" criteria. More specifically, for the purpose of determining eligibility, annual income includes all wages and salaries, interest income, net business income, social security income, pensions, educational benefits, V.A. benefits, alimony, unemployment compensation, child support, and income from assets. The income schedule upon which eligibility is based is adjusted for household size and is updated on an annual basis. The current income limits are:

Owner Occupied Deferred Payment Loan Income Limits (60% of area median)

Owner Occupied 3% Loan/Tenant Income Limits (80% of area median)

Eligibility is based on the household income at the time the rehabilitation process commences. Applicants will be required to provide copies of their most current tax returns or, in the event the applicant does not file an income tax return, documentation that is deemed suitable by the Office of Community Development.

In addition to the income requirements, all properties assisted through the Town's Housing Rehabilitation Program must be free of any outstanding zoning violations in order to qualify for assistance. Applicants must agree to maintain the property in accordance with the Town's property maintenance standards and zoning regulations for the duration of the loan provided.

Financial assistance provided through the Town's Housing Rehabilitation Program is in the form of a secured loan. As such, a mortgage is filed in the land records securing the loan in the same manner a bank loan is secured. The Town of Windsor has a responsibility to ensure that the loans it provides are financially prudent. Therefore, the determination as to whether an applicant is eligible for assistance through the Housing Program takes into account the total loan to value ratio of the subject property (including town funds), the applicant's credit history, income/debt ration and financial need.
 

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Applications are handled on a first come, first served basis. Initially your name will be placed on the waiting list and you will be contacted as soon as the OCD is prepared to move forward with the rehabilitation of your property. At that time you will be required to provide current income verification and complete a formal application. Income shall be documented by providing a signed copy of your most recent tax return (IRS 1040) or, in the event you do not file a tax return with the Internal Revenue Service, in a fashion that is acceptable to the OCD.

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The type of loan available to you is dependent on income level and whether a property is owner occupied or investor owned. In addition, the total dollar amount available for the rehabilitation of all properties is limited by the amount of equity the applicant has in that property. The total of all outstanding loans secured by a property, including all loans provided through this program, shall not exceed the value of the property as determined by the Office of Community Development.

Owner-occupied – Household whose income is between 60% and 80% of area median, and who reside in the property for which they are seeking assistance, and otherwise determined eligible for assistance through the Town’s Housing Rehabilitation Program, will be provided a low-interest (3%) loan in an amount up to $25,000. An additional $15,000 for each unit thereafter is also available under these guidelines. . The maximum term of repayment is ten (10) years. Individual repayment terms will be established based on the monthly payment amount and the applicant's ability to pay.

Applicants whose income is less than 60% of the area median are eligible for a 0% interest, deferred payment loan (DPL) in an amount up to $15,000.00. An additional $10,000 is available in the form of a DPL which accrues interest at the rate of 3% annually. The term of deferred loans provided through the Housing Rehabilitation Program require that the loan be repaid upon sale of property, or fifteen years, whichever comes first. If, at the end of the fifteen year term the applicant is unable to repay their loan based on their household financial circumstances at that time, the applicant may request that their loan be further deferred or the terms modified so as to initiate monthly payments. Requests shall be submitted to The Office of Community Development, or its successor, which will review such requests on an individual basis using standard underwriting criteria. Two criteria for further deferment of loans are 1) household income at or less than 60% of area median and 2) housing expenses in excess of 40% of total income.

Investor-owned - Loans for rental property are available at 4 1/2% with a maximum repayment term of 10 years. The maximum dollar amount available is $25,000.00 for the first unit and $15,000 for each unit thereafter.

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Forgiveness loans are available for up to 50% of the cost of lead and/or asbestos abatement and the removal of underground fuel tanks. Eligibility criteria is the same as that of the Town's regular Housing Rehabilitation Program. These loans are forgiven over a period of ten years (at a rate of 10% per year). Funds provided through the Housing Rehabilitation Program may be used as the required match. The Hazardous Materials Abatement Program has a cap of $6,000 per unit. Other than the type and amount of financial assistance available this program operates under the same guidelines as the Housing Rehabilitation Program.

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Eligible improvements under the Town's Housing Rehabilitation Program include 1) the correction of housing code violations, 2) cost effective energy conservation measures, 3) the correction of violations of the Life/Safety code (if applicable), and 4) modifications required so as to improve handicapped accessibility. The OCD reserves the sole authority to determine the eligibility of specific improvements. Examples of ineligible improvements include, but are not limited to: remodeling, the installation of central air conditioning, driveway repair, landscaping, garbage disposals, and the acquisition of appliances. Please remember, this is a housing rehabilitation program and, as such, is intended to preserve the Town’s existing low/moderate income housing stock. It is not intended to create additional space by way of remodeling, etc. unless it is necessary to address a specific code requirement.

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The steps in the housing rehabilitation process are as follows:

1. At such time as the OCD is prepared to move forward on your application you will be contacted to schedule an inspection. If your property consists of three or more units, or it constitutes a mixed-use property, it may be necessary to schedule an additional inspection by the Fire Marshall. The inspection process is necessary so as to determine extent and nature of all code deficiencies and to allow the inspector to familiarize him/herself with the field conditions so as to prepare work specifications.
    
2. A code report will be generated listing all code deficiencies.
    
3. Work specifications will be generated by the Office of Community Development.
    
4. You will be provided a draft copy of the Work Specifications detailing the proposed rehabilitation of your property along with a Work Specification Approval Form. If you are in agreement with that which is proposed, please sign the form and return it to the Office of Community Development. If you have any questions/comments or would like to request any changes please contact the OCD.
    
5. Upon receipt of your approval you will be provided with a bid package consisting of "Instructions To Bidders" and "Work Specifications" and a list of approved contractors. This list is intended as a resource only and you are free to solicit bids from any contractor you choose provided they are registered as a Home Improvement Contractor (with the State's Department of Consumer Protection) and/or carry the appropriate trade license. Contractors must also carry, and provide documentation of, minimum insurance requirements in order to participate in the Town's Housing Rehabilitation Program. All bidders who do not appear on the OCD's list of contractors will be required to submit a completed application. The homeowner should use the materials provided by the OCD to solicit bids and submit any and all bids received to the OCD for review.
    
6. The OCD will provide financing in the amount of the lowest responsible bid. You are free to choose from any of the bids received provided you pay, from your own resources, the difference between the amount of the lowest responsible bid and that which you select.
    
7. Upon selection of a contractor the OCD will generate the appropriate mortgage documents and a contract between you and the contractor(s) selected. The OCD will contact you to make arrangements for the execution of the required documents.
    
8. A pre-construction conference will typically be held prior to the commencement of work. You (the owner), the contractor and a representative from the OCD will meet and discuss the particulars of your project. The meeting will touch upon the scope of work, scheduling of work, access to the property and any other issues that may arise. Subsequent job meetings will be held as deemed appropriate.
    
9. As work proceeds the OCD will periodically inspect the progress of work. Partial payments will be issued in accordance with the schedule outlined in the "Instruction to Bidders" which will be part of the bid package you receive. Payments are issued directly to the contractor. Any amendments to the construction agreement must be formalized by way of a change order executed by the owner and the contractor and authorized by the OCD. All change orders will be drafted by the OCD.

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The OCD does, as a matter of practice, address emergency situations as they arise if, in the opinion of the OCD, the situation poses an imminent threat to the occupants of the building. Examples include defunct heating systems, a roof which is leaking, or a child under the age of 6 with an elevated blood lead (EBL) level that is the result of the child's home environment. If such a situation exists please make the OCD staff aware of the particulars. If, in the opinion of the Office of Community Development, the situation is fact an emergency and warrants immediate attention, the matter will be addressed in a timely manner. The scope of work will be limited to that which is determined to be an emergency and any additional work will be done at such time as your application would normally be processed. The same eligibility and application requirements apply.

The Housing Rehabilitation Program is funded through the federal Community Development Block Grant – Small Cities Program and is subject to state and federal lead-based paint regulations. The dollar amount of a given project dictates different requirements. These regulations apply to all homes built prior to 1978.

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