06-26-1991 Council Agenda - Laserfiche WebLink

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III. Improvement Eligibility The Deferred Loan Program is designed to provide funds for basic improvements to make a dwelling more safe, habitable, or energy efficient. The need for such improvements is determined by an inspection performed by the staff of an Administering Entity. The cost of the necessary improvements cannot exceed $9,000. All improvements must be permanent improvements. Examples may include repair or replacement of furnaces, roofs, electrical and plumbing systems, insulation, and construction of ramps for accessibility. A special Accessibility Fund is available to use for improvements necessary to enable a disabled person to function in a residence. The .need for such improvements is determined by an inspection performed by the staff of an Administering Entity, consideration of the disabled person's priority needs and consultation with the homeowner and MHFA. The cost of accessibility improvements cannot exceed $10,000. IV. Administrative Procedures Based on an MHFA- determined allocation plan, organizations will be invited to apply to administer the program. An amount not exceeding 14% of an entity's allocation may be deducted from the allocation for administrative expenses. The Administering Entity is responsible for determining the adjusted income, assets, and necessary improvements for each applicant. After each loan package is assembled, the Administering Entity will submit the package to MHFA for review. Upon approval, MHFA will notify the Administering Entity of approval and supply the documents necessary to close the loan. The Administering Entity will close the loan; record the Repayment Agreement and Mortgage; monitor the rehabilitation work; certify, along with the borrower, that the work is completed satisfactorily and authorize contractor payment. 5/31/91 -2- Page 72 2797/D