Housing Rehabilitation

Owner Occupant Housing Rehabilitation

This program allows qualified homeowners located in the City of City of Leominster to take out a 0% deferred payment loan to make necessary improvements to their home. The funds are primarily used to repair/replace substandard or failing housing conditions and make energy efficiency improvements. Improvements can include, repairing or replacing roof, windows, doors, hot water heater, furnace, flooring, plumbing, electrical and more.

Loan Details

  • Monthly Payments are not required
  • Interest does not accrue
  • The loan does not need to be paid back until there is a transfer of title (e.g. home is sold)

The loan is immediately due and payable if the home is sold, ownership is transferred, and the homeowner fails to occupy the property, or fails to pay property taxes or property insurance. Loans are secured by a Mortgage on the property.

Preliminary Qualifications

  • You must meet the Housing Rehabilitation Program Income Guidelines (PDF)
  • The property must be your primary residence
  • You must be the owner of record of the property to be rehabilitated
  • The mortgage, taxes, and water and sewer must be in good standing
  • If the property is located in the floodplain, proper insurance is required

Once you qualify, a Rehabilitation Specialist will inspect your home to identify necessary improvements and develop a cost estimate. A contractor will be obtained through a competitive bid process and will make the improvements to your home. The city will disburse the funds to the contractor on your behalf. Lead-based paint testing may be performed on homes built before 1978. Asbestos testing may also be required.

Resources

  1. Elder Safety Program (PDF)
  2. FAQ (Housing Rehabilitation) (PDF)
  3. HOME Investment Partnership Program (PDF)
  4. Housing Rehab Guidelines and Application (PDF)