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Program Summary <br />Page 2 <br />6. The total of all loans secured by the property may not exceed the <br />estimated after - Improvement market value of the property. <br />7. Borrowers must not be eligible for the necessary assistance through <br />other state or federal programs including MHPA Home Improvement Loans <br />and Home Energy Loans. However, funds may be coordinated with other <br />programs provided the other programs are used to the greatest extent <br />possible. <br />8. Borrower must continuously maintain hazard insurance on the Improved <br />property. <br />III. Improvement Eligibility <br />The Revolving Loan Program Is designed to provide funds for basic <br />improvements to make a dwelling more safe, habitable, energy efficient or <br />accessible. The need for such improvements is determined by an inspection <br />performed by the staff of an Administering Entity. The cost of the <br />necessary Improvements cannot exceed $7,500. <br />All improvements must be permanent improvements. Examples may include <br />repair or replacement of furnaces, roofs, electrical and plumbing systems, <br />insulation, and construction of ramps for accessibility. <br />IV. Administrative Procedures <br />Based on an MHFA- determined allocation plan, current Rehabilitation Loan <br />Program Administrators will be invited to contract for delivery of the <br />progrem. An amount not to exceed 14% of total funding may be requested <br />for administrative expenses. <br />All applications will be processed on a first come first served basis; <br />however, priority will be given to: <br />(a) applications of an emergency nature (natural disasters and systems or <br />structural failures) and <br />(b) applications necessary in order to make DOE Weatherization <br />improvements feasible (i.e. roof replacement /repair) <br />The Administering Entity Is responsible for determining the adjusted <br />income, assets, affordability, and necessary improvements for each <br />applicant. <br />After each loan package is assembled, the Administering Entity will submit <br />the package to MHFA for review. tipon approval, MHPA will notify the <br />Administering Entity of approval and supply the documents necessary to <br />close the loan. The Administering Entity will close the loan; record the <br />Mortgage; monitor the rehabilitation work; certify, along with the <br />borrower, that the work is completed satisfactorily and authorize <br />contractor payment. <br />70011 (1/11/89) <br />Page 24 <br />