INFORMATION SHEET Lambton Renovates Program for Homeowners

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1 INFORMATION SHEET 2015 Lambton Renovates Program for Homeowners Disclaimer: Details contained herein are for informational purposes only, and are not to be relied upon as a comprehensive or precise representation of the program, its terms and conditions or eligibility rules. Please read carefully before applying for a loan under the Lambton Renovates Program. The Federal and Provincial governments partnered to fund the Lambton Renovates program for Lambton County in Completed applications are generally processed on a first come first serve basis. An exception to the first come first serve basis may be made if loan applications are for urgent and critical repairs and may be approved by the Program Administrator, in its sole discretion. Recipients of funding from previous rounds of Lambton Renovates, Homeownership Down Payment Assistance or Rental & Supportive Component of AHP/IAH Programs are not eligible for additional funding under this or future rounds of the Lambton Renovates Program. Funding is provided in the form of a 10 year forgivable loan to homeowner occupant based on the cost of approved work items. Accessibility repair costs up to the first $5,000 may be in the form of a grant rather than a loan and does not require repayment. The amount of funding per homeowner application may be up to a maximum of $15,000. Program recipients are required to sign a Loan Agreement to be registered as a second mortgage on the title of the property. The loan agreement shall in no case be lower than second position on the title of the property. The loan is payment free, interest free and forgivable if the homeowner occupant complies with program rules at all times. Provided the homeowner occupant remains in compliance with program rules, the loan is forgiven at the rate of 10% per year over the program period. The earning of loan forgiveness begins on the date the project work passes final inspection. All or part of the loan is repayable under certain circumstances. The full amount of the loan may be repayable if a lien, other charge or claim is made against the home. The full amount of the loan is repayable if information provided by the applicant is false or misrepresented, the applicant omits relevant information and/or the funding is used for purposes other than the approved use. In other circumstances, including a sale of the home or if the homeowner occupant ceases to occupy the home as the sole and principal residence, the balance of the loan is repayable on the basis of the 10% per year forgivable calculation. Page 1 of 7

2 Eligibility Criteria The following highlights applicant eligibility criteria, subject to the discretion of the County of Lambton. 1) A fully completed 2015 Lambton Renovates Application Form is required; 2) Photocopy of 2 pieces of government issued photo identification of the Applicant(s); 3) The combined total annual gross foreign and Canadian household income cannot exceed the tiered income limit as follows: 1 person household - $32,800 2 person household - $45,000 3 person household - $57,200 4 person household - $69,400 5 person household - $81,600 4) The combined total foreign and Canadian household assets as established under O. Reg. 367/11 Sec 35 cannot exceed $100,000. This includes assets from every member of the household that is 18 years of age or older; 5) The home is located in any municipality in the County of Lambton; 6) The home is more than five years old; 7) Homes situated on 'leasehold land and/or leasehold land improvements' are not eligible for this program. The applicant must own both the home and the land the home is situated on; 8) Market value (MPAC or licensed qualified appraisal) of the home does not exceed $190,000; 9) The total balance of all existing mortgages/charges and other financing registered on the title of the property plus the estimated program loan amount do not exceed 100% of the market value of the property as determined by MPAC or a licensed qualified appraiser; 10) Title and Sheriff Certificate searches (completed by the County of Lambton) must be clear of any liens, writs and executions; 11) There are no liens or charges, except first mortgage/charge and other financing, registered against the property; 12) Mortgage/charge and other financing payments must be up-to-date and not in arrears; 13) Homeowner insurance coverage must be in place for the full value of the home and the premium must be paid up-to-date and not in arrears; 14) Property tax account is paid up-to-date and not in arrears; 15) Applicants do not have outstanding social housing arrears in Ontario; 16) The home requiring the work must be owned and occupied by the applicant(s) as their sole and principal residence for the full term of the loan; 17) The intended work must be eligible for program funds; 18) Accessibility modifications qualify for approval of a grant not to exceed $5,000 if: a) The modifications are required to accommodate a medical condition of one or more occupants of the home that requires improved accessibility features and; b) The need for accessibility modifications is verified in writing by a qualified professional, where the verification of the need for the accessibility modifications and the qualified professional are acceptable and satisfactory to the Program Coordinator and; c) The accessibility modifications required are clearly described and specified by a qualified professional where the description and specifications of the accessibility modifications and the qualification of the professional are acceptable and satisfactory to the Program Coordinator; Page 2 of 7

3 19) Any work started prior to approval of the Loan Agreement on title or submission of the signed Letter of Agreement for the Grant component, whichever applies, is not eligible for program funding; 20) Work that may be covered by the homeowner's insurance policy or covered by a warranty period is not eligible for program funding. General Information 1) Approved applicants must sign and register a forgivable Loan Agreement on title within program timelines. In the case of an accessibility grant, approved applicants must sign and submit the Letter of Agreement for the grant to the Program Coordinator; 2) Work must commence within 45 days of the date the Loan Agreement is registered on title and be completed within 120 days of commencement. In the case of an accessibility grant, work must commence within 45 days of the Letter of Agreement and be completed within 120 days of commencement; 3) The need for and a description of the intended work must be confirmed by the County of Lambton's Building Services Department. Where confirmation by the County's Building Services Department is not possible, a qualified professional must confirm the work. Qualified professional includes an inspector from the Fire Department, Electrical Safety Authority, gas company, utility company, engineer, and in some cases a qualified home inspector, a qualified contractor or a qualified medical professional. Confirmation of the need and work descriptions must be in a form, content and from a source acceptable to the Program Administrator; 4) Quotes and estimates for the work must be from a qualified contractor and the relationship with the contractor must be at arms-length. Arms-length means a transaction in which the buyers and sellers of a product or service act independently and have no relationship to each other. The concept of an arm's length transaction is intended to facilitate a prudent use of public funds and ensure that the parties in the transaction are acting in their own self-interest and are not subject to any pressure or undue influence from the other party; 5) Quotes and estimates for the work must include the contractor's HST number and an itemized list of the scope of work to be completed along with the cost to complete each item of work listed; 6) The homeowner occupant must retain and submit copies of all financial records (including invoices and proof of payment) for reporting and audit purposes; 7) All work must be in accordance with applicable rules and regulations, including but not limited to, zoning and municipal requirements; 8) The homeowner occupant must adhere to all program requirements, rules and timelines throughout the process and during the 10 year forgivable loan period. Inspections The need for and a description of the intended work must be confirmed by the County of Lambton's Building Services Department and where not possible, by a qualified professional. An inspector from the County's Building Services Department or the qualified professional may be obligated to record any defects in the home even if the defect was not part of the Lambton Renovates Loan Application. The results of the inspection may remain on the record of your home and if so all work must be completed even if you withdraw your application or if your application is not approved. It is also possible that the maximum funding is not enough to pay for all the work listed in the inspection report even if your application is approved. In this case, you may be responsible to complete the work at your own expense prior to starting the Lambton Renovates work. Page 3 of 7

4 It is also important to note that if the cost of the work described in the inspection reports is higher than the amount you requested on your application but lower than the maximum amounts allowed under the program, you may amend your application and request a higher loan amount. Such requests will be reviewed on a case by case basis but there is no guarantee such a request for a higher amount will be approved. Eligible Projects Any work started prior to approval of your application is not eligible for program funding. Applicants must obtain the necessary permits, approvals and final inspections for all work. Eligible repairs for Lambton Renovates may include the following activities: Repairs or replacements required to make a house safe. Examples of this include repairs required to remedy leaky roofs where deterioration is beyond practical repairs, basement leaking, mould/asbestos removal to eliminate a present health hazard, fire safety items, electrical defects, chimneys, doors and windows, plumbing defects, septic systems, well water and well drilling, the replacement of a furnace (or the home's primary heat source) condemned by the governing authority; or repairs mandated by the County's Building Services Department; Lambton Renovates strongly encourages the use of energy-saving products or systems for the required repairs and/or rehabilitation. Modifications to increase accessibility related to housing and reasonably related to an occupant s disability including permanent installations of ramps, handrails, chair and bath lifts, height adjustments to countertops, and cues for doorbells/fire alarms. Other eligible costs include labour and applicable taxes, building permits, legal fees, certificates, appraisal fees, inspection fees, drawing and specification and any other costs that the County of Lambton deems reasonable and that are agreed to by the Ministry of Municipal Affairs and Housing. IMPORTANT INFORMATION Applicants are not approved for any program funds solely on the basis of submitting an application or other information. All applicants are cautioned not to rely on Lambton Renovates program funds until they receive a Letter of Final Approval confirming the application has been approved for program funds. Any work started prior to registration of the Loan Agreement on title or in the case of an accessibility grant, submission of the signed Letter of Agreement for the grant to the Program Coordinator, is not eligible for program funding. If your application is approved, program funds cannot be released or advanced to you until all the work is completed and all final inspections approving the work have been submitted. Program funds cannot be used for deposits or progress draws to contractors. Applicants are cautioned not to sign any agreement or contract with a contractor prior to registration of the Loan Agreement on title or in the case of an accessibility grant, receipt of the signed Letter of Agreement by the PC. Any and all contracts for the work are the responsibility of the applicant. The Corporation of the County of Lambton is not responsible for or bound in any way by any third party contracts. Lambton Renovates - 7 Process Steps The delivery of the 2014 Lambton Renovates program is coordinated by the Project Coordinator (PC). Here is a 7 step overview of the Lambton Renovates program: Step 1 Submit completed application and supporting documents to PC. Step 2 PC reviews initial application for eligibility Step 3 PC sends Letter of Conditional Approval to applicant Page 4 of 7

5 Step 4 Step 5 Step 6 Step 7 PC reviews inspections and quotes PC sends Letter of Final Approval or Letter of Agreement to applicant Applicant s legal representative registers Loan Agreement on Title Applicant requests payment of program funds Step 1 Submit completed application and supporting documents to PC Applicants must submit a fully completed 2015 Lambton Renovates Application Form with all required information, documentation and verification attachments which includes but may not be limited to: Proof of all foreign and Canadian income from every member of the household 18 years of age or older; Verification of total household foreign and Canadian assets; Verification of the total balance of all existing mortgage/charge and other financing on the property; Verification that all mortgage/charge and other financing payments are up-to-date and not in arrears; A Certificate of Insurance and verification that insurance coverage is in place for the full value of the home and the premium is paid up-to-date and not in arrears; Verification that the market value of the home does not exceed $190,000; Verification that the property tax account is paid up-to-date and there are no arrears; Verification that the applicant(s) is/are the registered owner(s) of the home for which program funds are requested; Step 2 PC reviews initial application for eligibility Application will be reviewed for completeness and eligibility. If the application and/or documents are incomplete, the application cannot be processed. The applicant will be notified and may be required to start over at Step 1, losing their application ranking. Please be sure the application is complete and all documents required are submitted to avoid losing the application ranking. If the application and documents are complete the PC conducts a title search to verify that the applicant(s) is/are the registered owner(s) of the home for which program funds are requested and to verify there are no liens registered against the property. The PC will also proceed to verify any other information deemed necessary by the PC. o If the application and related information confirms the applicant is ineligible, the application will be declined and the applicant will be notified by letter. If the applicant is ineligible the application will be closed and no further steps will be required. o If the application and related information confirms the applicant is eligible, the application will proceed to Step 3. Step 3 PC sends Letter of Conditional Approval to applicant PC will schedule initial inspection and notify applicant of inspector availability. The Inspector will conduct an initial inspection and provide PC with report. PC will review initial inspection report as part of eligibility process; If the inspection report, confirms the applicant is ineligible, the application will be declined and the applicant will be notified by letter. If the applicant is ineligible the application will be closed and no further steps will be required. If the inspection report confirms the applicant is eligible, PC sends Letter of Conditional Approval to applicant confirming the applicant is eligible and that the application is conditionally approved with a stated amount of maximum funding. The applicant is required to sign a copy of the Page 5 of 7

6 Conditional Approval and return to PC. The conditional letter of approval is subject to the following conditions: o Applicant obtaining and submitting a copy of the necessary confirmation of the need for the work, any other required inspection(s) and obtain at least three detailed/itemized quotes to complete the work from arms-length, qualified contractors; o Homeowner's confirmation of the quote and contractor the homeowner has selected to complete the work; o The selected contractor's quote must: include a copy of the contractor s WSIB clearance certificate include the contractor s HST number include a copy of the contractor s general liability insurance certificate match the work description on the inspection reports include the cost to obtain any permits or inspections include an itemized list of the scope of work along with the cost for each item clearly indicate the cost of HST separately or clearly indicate HST included in price; o Homeowner submitting to the PC the information requested on or before the date indicated in the Letter of Conditional Approval; o Applicant adhering to all program requirements, rules and timelines throughout the process and during the 10 year loan forgiveness period. o Applicant will receive a sample copy of the forgivable Loan Agreement and/or Letter of Agreement for the accessibility grant for review in advance of registering the loan on the title of the home. Please note the final version of the Loan Agreement and/or Letter of Agreement for the accessibility grant is subject to change; o The work commencing within 45 days of the date of the registration of the Loan Agreement on title or in the case of the accessibility grant, within 45 days of the date of the Letter of Agreement and completed within 120 days of the commencement date; Step 4 PC reviews inspections and quotes PC reviews the inspections and quotes to ensure the quotes: contain all necessary information; address the work described in the inspection report(s); are consistent with the conditional maximum approved amount. When the PC is satisfied that the inspection and quotes meet program requirements the application will proceed to Step 5. Step 5 PC sends Letter of Final Approval or Letter of Agreement to applicant In the case of Loan Agreements: PC sends Letter of Final Approval to the applicant and the Loan Agreement to the applicant's legal representative for signature and registration on title; Final Letter of Approval is conditional based on: o Loan Agreement is registered on title in accordance with Step 6 and on or before the date indicated in the Final Letter of Approval; o The work commences within 45 days of the date the Loan Agreement is registered on title and completed within 120 days of the commencement date; o Applicant obtains all necessary permits and approvals for the work; In the case of Letter of Agreement for the accessibility grant: PC sends Letter of Agreement containing the terms and conditions of the grant for review and signature by the applicant Final Letter of Approval is conditional based on: Page 6 of 7

7 o o o Applicant submits copy of the Letter of Agreement to the PC on or before the date indicated on the Final Letter of Approval; The work commences within 45 days of the date of the Letter of Agreement; Applicant obtains all necessary permits and approvals for the work. Step 6 Applicant s Legal Representative Registers Loan Agreement on Title Applicant arranges for its legal representative to register the Loan Agreement on title and notifies PC that title registration is complete. Applicant's lawyer provides copy of registration documents to PC. The County of Lambton will pay the applicant's lawyer directly for the title registration once the registration is completed and confirmation of the registration is received by the PC. Fees related to the registration of the Loan Agreement on Title are covered and included in the approved funding amount. Step 7 Applicant Requests Payment of Program Funds Applicant completes work and notifies PC work is completed; PC schedules final inspection; Inspector will come out to property to assess work completed; Inspector to provide PC with final inspection report; Applicant submits any necessary municipal and/or other approvals, if applicable; Applicant submits invoices for the work. All invoices must have an invoice number along with itemized list of work completed and cost for each item. Invoices/receipts for permits and inspections and the cost of legal and title registration fees may be included; Funds will not be released until all program requirements have been met; Payment of funds will be made directly to the homeowner in the form of a cheque made payable to both the homeowner and contractor; If the cost of the work exceeds the approved amount of program funds, the homeowner is responsible to pay for the additional cost for the work. The homeowner is responsible to pay the contractor. Non-payment to the contractor may cause a lien or other claim against the homeowner resulting in default under the program. In such a case, the homeowner may be required to re-pay the full amount of the loan. How to Apply Lambton Renovates applications can be picked up at the County of Lambton Housing Services Department located at: The Corporation of the County of Lambton 150 N. Christina 2 nd Floor, Housing Services Dept. Sarnia ON N7T 8H3 The office is open Monday through Friday from 8:30 a.m. to 4:30 p.m., excluding holidays. Applications are also available online at the County of Lambton website Click on: Residents Housing Services Lambton Renovates. All applications must be returned to the located at the address listed above. Any questions regarding the Lambton Renovates Program should be directed to the Program Coordinator at Ext Page 7 of 7