LOAN PROGRAM. 4 person. 5 person. $51,050 or less. $55,150 or less

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1 C:\Users\Kris2192\Documents\HSGFORMS\Rehab Application.wpd REVISED 1-13 HOUSING REHABILITATION PROGRAM PROGRAM DESCRIPTION AND LOAN/GRANT APPLICATION The City of Orem is an Equal Housing Opportunity Lender. The Orem Housing Rehabilitation Program has been established to provide decent, safe, and sanitary housing through rehabilitation and emergency repair on existing structures. The program benefits owner-occupied residents who fall into low and moderate income categories. Income guidelines are established by the United States Department of Housing and Urban Development. APPLICANT ELIGIBILITY LOAN PROGRAM To be eligible for the housing rehabilitation program, the qualifications are as follows: City of Orem Resident Own and reside in a single-family unit (Single-family units include homes, condominiums, and town homes. The unit must be recorded in your name only. No relative, friend, or other entity may share ownership of the home.) Must meet the following income guideline listed below, which is based on annual household gross income (If you need the income guideline for more than a 10- household, please contact ): # in the household Income Limit $35,750 $40,850 $45,950 $51,050 $55,150 $59,250 $63,350 $67,400 $71,500 $75,550 updated 1-13 As notification, if an applicant applying for the program has an accessory apartment, the apartment must be legal, and income from the renter is required unless the apartment has a separate address. (Note: The renter s income is also required if the renter is benefitting from the improvements.) Conflict of Interest No employee or official of the City of Orem who exercises policy or decision-making functions or responsibilities in connection with the planning and implementation of the program shall be eligible to participate in the program. All other City employees shall be eligible to participate in the program upon approval of the City Manager or his designee. WORK ELIGIBILITY The following improvements are eligible for rehabilitation loan assistance: electrical, plumbing, siding, windows, doors, flooring, roofing, painting, remodeling, additions (based on need), ADA improvements and more. Work involving carports, storage sheds, garages, fences, landscaping, or any object not directly attached and/or related to the house itself is NOT eligible. All improvements must be physically attached to the house and permanent in nature. Manufactured housing (mobile homes) are not eligible for this program. Units must be able to comply with all City, State, and Federal Housing Quality Standards (code items) at the completion of rehabilitation. Page -1-

2 A City Building permit is required for applicable rehabilitation loans. (If you are residing in a condominium and exterior code items are required, an approval letter from the condominium association is required.) Applicant must submit a written description of their requested improvements along with a cost estimate and drawing (if the structure will be changed). (If you are residing in a condominium and exterior items are being completed, an approval letter from the condominium association is required.) LOAN CONDITIONS Maximum Housing Rehabilitation Loan: cost of your project or up to $15,000 Interest Rate: three percent (3%) Repayment Period: ten (10) years Grace Period ten (10) days Late Fee: $25 Security: SECOND MORTGAGE PLACED AGAINST THE PROPERTY If applicant is over 62 years old, they may qualify for a zero percent deferred loan. SYSTEM FOR APPLICANT SELECTION Applications will be accepted year-round. Projects will be funded on a first come-first served basis. Emphasis will be placed on rehabilitation projects in areas of the City that are qualified as low- and moderate-income area benefit. Applicants MUST submit the following with their application: a copy of all household members completed 1040 Federal Income Tax forms from the previous two years copies of all household members paycheck stubs for the previous two months or other monthly income verification copy of mortgage deed (trust deed, warranty deed, etc.). The deed should include the title holder and the legal description. Information provided by the applicant must be true to the applicant's knowledge. The City of Orem reserves the right to terminate assistance and to recover funds expended if the applicant is found to have willfully withheld accurate information or to have deliberately falsified the application. Page -2-

3 EMERGENCY REPAIR GRANT The Housing Rehabilitation Administrator shall have the authority to grant/loan funds for emergency repairs on any structure determined to be appropriate. Such funds shall be granted/loaned for the following reasons: 1) Any act of nature resulting in critical, but repairable damage to the structural condition of the home; or 2) To eliminate specific and immediate hazards to health, safety and/or sanitation. The Housing Rehabilitation Administrator or delegated representative shall review all applications for emergency repairs prior to approving a grant/loan. The applicant must meet the eligibility requirements for the CDBG assistance to receive a grant/loan for emergency repairs. The Housing Rehabilitation Administrator shall have the authority to waive prior verification of eligibility in cases where an immediate danger to health, safety, or sanitation exists. The applicant shall be notified that in the event verification of eligibility should reveal the applicant does not fall within the requirements, the applicant shall be required to make full restitution, plus a penalty, to the City of Orem. Such emergency repairs shall not prejudice the right of the applicant to make application for rehabilitation assistance loans for which he or she may be eligible. Emergency repair grants shall not exceed three thousand seven hundred fifty dollars ($3,750) for those individuals whose income meets the following income guideline listed below. No applicant shall be entitled to more than one emergency repair grant in any three-year period. The actual amount of all emergency repair grants must be approved by the Housing Rehabilitation Administrator and the Assistant City Manager. # in the household Income Limit $22,350 $25,550 $28,750 $31,900 $34,500 $37,050 $39,600 $42,150 $44,650 $47,200 updated 1-13 Page -3-

4 ACCESSIBILITY GRANT The Housing Rehabilitation Administrator shall have the authority to grant/loan funds for accessibility improvements on any structure determined to be appropriate. The improvements will assist s with disabilities and/or poor health conditions. The Housing Rehabilitation Administrator or delegated representative shall review all applications for accessibility improvements prior to approving a grant/loan. The applicant must meet the eligibility requirements for the CDBG assistance to receive a grant/loan for accessibility improvements. The applicant shall be notified that in the event verification of eligibility should reveal the applicant does not fall within the requirements, the applicant shall be required to make full restitution, plus a penalty, to the City of Orem. The Accessibility Grant shall not exceed three thousand seven hundred dollars ($3,750) for those individuals whose income meets the following income guideline listed below. Projects such as wheelchair ramps, handrails, handicap accessible toilets/showers, and so on will be eligible for this program. # in the household Income Limit $35,750 $40,850 $45,950 $51,050 $55,150 This grant is provided in conjunction with the Americans with Disabilities Act. $59,250 $63,350 $67,400 $71,500 $75,550 updated 1-13 Such accessibility improvements shall not prejudice the right of the applicant to make application for rehabilitation assistance loans for which he or she may be eligible. Note: Further specific guidelines for the Housing Rehabilitation Program are available upon request. Page -4-

5 DEPLOYED MILITARY GRANT The Housing Rehabilitation Administrator shall have the authority to grant/loan funds for emergency repairs on any structure determined to be appropriate. Such funds shall be granted/loaned for the following reasons: 1) Any act of nature resulting in critical, but repairable damage to the structural condition of the home; or 2) To eliminate specific and immediate hazards to health, safety and/or sanitation. The Housing Rehabilitation Administrator or delegated representative shall review all applications for emergency repairs prior to approving a grant/loan. The applicant must meet the eligibility requirements for the CDBG assistance to receive a grant/loan for emergency repairs. The Housing Rehabilitation Administrator shall have the authority to waive prior verification of eligibility in cases where an immediate danger to health, safety, or sanitation exists. The applicant shall be notified that in the event verification of eligibility should reveal the applicant does not fall within the requirements, the applicant shall be required to make full restitution, plus a penalty, to the City of Orem. Such emergency repairs shall not prejudice the right of the applicant to make application for rehabilitation assistance loans for which he or she may be eligible. Emergency repair grants shall not exceed three thousand seven hundred fifty dollars ($3,750) for those individuals whose income meets the following income guideline listed below. The property must be owned and occupied by a deployed member of the U.S. Armed Forces. No applicant shall be entitled to more than one grant in any three-year period. The actual amount of all grants must be approved by the Housing Rehabilitation Administrator and the Assistant City Manager. # in the household Income Limit $35,750 $40,850 $45,950 $51,050 $55,150 $59,250 $63,350 $67,400 $71,500 $75,550 updated 1-13 Page -5-

6 THE CITY OF OREM RESIDENTIAL HOUSING REHABILITATION PROGRAM COMMUNITY DEVELOPMENT BLOCK GRANT/HOME INVESTMENT PARTNERSHIP GRANT LOAN/GRANT APPLICATION IT IS EXTREMELY IMPORTANT THAT YOU COMPLETE ALL OF THE INFORMATION ON THIS APPLICATION RETURN TO: CITY OF OREM KRISTIE SNYDER 56 NORTH STATE STREET #101 OREM UTAH PHONE (801) FAX (801) FOR OFFICE USE ONLY: DATE APPLICATION RECEIVED: APPLICANT: SPOUSE: SOCIAL SECURITY NO: SOCIAL SECURITY NO: ADDRESS (include zip code): PHONE: ****************************************************************************************** HOUSEHOLD COMPOSITION (List each who lives in the home, whether they are family or not) Family Member No. Name Ethnicity Birth Date Sex Relationship 1. (Applicant) 2. (Spouse) (List additional members on separate page) Is anyone in household age 62 or over? Is applicant the single, female head of household? Is anyone in household physically or mentally handicapped? If yes explain: Page -1-

7 GROSS HOUSEHOLD INCOME (use additional page if necessary) Family Member No. Type of Income Wages, Salaries, Tips, etc. Taxable Interest Tax-exempt Interest Ordinary Dividends Taxable refunds, credits, or offsets of state and local income taxes Alimony Business Income Capital Gain Other Gain IRA Distributions Pensions & Annuities Rental real estate, royalities, partnerships, S Corps,Trusts, Etc. Farm Income Unemployment Compensation Social Security Benefits Other Income TOTAL GROSS MONTHLY HOUSEHOLD INCOME: $ APPLICANT MUST ATTACH COPIES OF THE FEDERAL INCOME TAX FORM (1040 FORM) FOR THE PREVIOUS 2 YEARS. IN ADDITION, ATTACH COPIES OF THE PREVIOUS 2 MONTHS OF CHECK STUBS AND/OR OTHER NECESSARY MONTHLY INCOME VERIFICATION. Page -2-

8 EMPLOYMENT INFORMATION Applicant Employment Information Employer s Name: Address: Position Held: Telephone No. How Long There? Gross Monthly Salary/Wage: Previous Employer: Telephone No: Position Held: How Long There? Monthly Gross Pay: Reason for Leaving Spouse Employment Information Employer s Name: Address: How Long There? Telephone No. Position Held: Gross Monthly Salary/Wage: Previous Employer: Telephone No: Position Held: How Long There? Monthly Gross Pay: Reason for Leaving? Page -3-

9 CREDIT INFORMATION Complete list of all debts now owing: Include payment of alimony, separate maintenance and/or child support, if applicable, and any payment that you pay each month. Name of Creditor Original Balance Present Balance Due Date Monthly Payment Past Due Amount Page -4-

10 MORTGAGE INFORMATION EXISTING debt on property to be rehabilitated: (From Mortgage Verification). Owned by: Date Purchased: (Name of Titleholder) Cost: $ Total Monthly Payment: $ Payments paid to: Balance Owing: $ Year Home was Built: Type of Mortgage: FHA VA Conventional Contract MUST ATTACH A COPY OF MORTGAGE OR WARRANTY DEED. Do you own any real estate other than the home that you currently reside? If yes, please describe and give location. Have you ever declared bankruptcy? If yes, give date filed and explanation. Have you ever received any type of Federal assistance? If yes, please explain. MONTHLY EXPENSES: Mortgage payments $ Insurance $ Taxes $ Maintenance $ Heat & Utilities $ Water $ Home Imp. Loans $ Other home financing $ Page -5-

11 DATE: ASSETS MONETARY ASSETS 1) Cash On hand Checking Savings STATEMENT OF THE FAMILY'S CURRENT FINANCIAL CONDITION TOTAL UNPAID BILLS 11) Installment Loans (Balance Due) Auto Other TOTAL INSTALL. LOANS TOTAL CASH 2) Money loaned to others (repayment expected) 3) Investments Savings Bonds Stocks and Bonds Mutual Funds Cash Value of life insurance Cash val. of annuities 12) Loans (Balance due) Bank Educ. Other TOTAL LOANS 13) Mortgages (Balance due) Home Other TOTAL INVESTMENTS 4) Accumulation in company profit-sharing plan TOTAL MONETARY ASSETS FIXED ASSETS 5) Home and Property 6) Other real estate investments 7) Automobiles TOTAL MORTGAGES TOTAL LIABILITIES STAFF USE ONLY: TOTAL ASSETS minus TOTAL LIABILITIES Equals NET WORTH OF FAMILY 8) Ownership interests in small businesses 9) Personal Property TOTAL FIXED ASSETS TOTAL ASSETS OF FAMILY LIABILITIES 10) Unpaid Bills Taxes Due Insurance Rent Utilities Chrg Acnts Other Page -6-

12 Please include an itemized description of proposed rehabilitation work to be completed through the Housing Rehabilitation Program. FOR OFFICE USE ONLY: (TO BE COMPLETED BY CITY STAFF) A. Total monthly housing expenses: $ B. Total monthly installment payments: $ (from items page 12) C. Total monthly expenses: $ D. Total Gross Monthly Household income: $ Housing expenses = % of Total Gross monthly household income (A/D). Mortgage = % of Total Gross monthly household income (mort./d). Debt/Income = % of Total Gross monthly expenses (C/D). All information given on this application will be kept in complete confidence and used only for application for the City of Orem Housing Rehabilitation Program. Page -7-

13 I/We verify that the information given on this form is accurate and complete to the best of our information, and I/We authorize you to obtain such information as you may require to verify the facts contained herein. I/We affirm that each of the answers is true and correct and is made for the purpose of obtaining assistance under the City of Orem Housing Rehabilitation Program and you are entitled to rely thereon, whether or not you obtain further or additional information. I/We further affirm that I/We are aware that, if such a loan is approved by the City of Orem Housing Rehabilitation Program, I/We will work with the Staff to comply with all of the policies and procedures as outlined by the City of Orem, and that I/We will willingly secure the loan in the amount necessary with a duly executed Trust Deed and Trust Deed Note. Also, if such loan is approved, I will be notified by the Community and Neighborhood Services Office and after such notification, I will then have two weeks to respond. If I do not respond within that time limit, re-application and re-approval will be necessary. I/We have also read and understand the Housing Rehabilitation Guidelines and this application and I/We agree to abide by the guidelines of the City of Orem Housing Rehabilitation Program. I/We will not hold the City of Orem legally liable for any actions of the City Staff, or the Contractor. DISCLAIMER The undersigned hereby acknowledges that any discussions with or any information given by a City of Orem employee regarding application for the City of Orem Housing Rehabilitation Revolving Loan Fund Program, prior to receipt of a formal commitment letter from the City of Orem committing a specific amount of funds to the project, is only for program information and may not be considered a binding commitment on the part of the City of Orem to provide funds or technical assistance to the project. The undersigned also acknowledges that any costs, including application fee, incurred prior to receipt of a formal commitment letter from the City of Orem committing a specific amount of funds to the project is at the risk and expense of the applicant. Date: Date: Signature Signature State of Utah: ss County of Utah: On the day of 20, ally appeared before me, who being duly sworn, acknowledged to me that he/she has read and understands the foregoing instrument and has executed the same. Notary Public Page -8-

14 LEAD-BASE PAINT LETTER OF ACKNOWLEDGMENT The Housing Rehabilitation program will be complying with the lead-base paint regulation issued from the Department of Housing and Urban Development (HUD). The lead-base paint regulation will affect any home built prior to January 1, City of Orem is currently notifying present and future applicants of the hazards caused by lead-base paint. By doing this, Orem is providing a pamphlet regarding lead-base paint. The pamphlet, Protect Your Family From Lead In Your Home, was developed by the United States Environmental Protection Agency (EPA), United States Consumer Product Safety Commission (CPSC), and United States Department of Housing and Urban Development (HUD). By reading and understanding the situation that could arise, the lead-base paint regulation will be required to be addressed in your home (if built prior to January 1, 1978). Thank you, Jim Kenyon By signing below, I (We) verify that I have received the lead-base paint pamphlet, Protect Your Family From Lead In Your Home. I (We) have read the pamphlet and been given the opportunity for discussion on the new lead-base paint regulation. I (We) understand if the loan is to continue, investigation on lead-base paint will be required to be addressed (if the home is built prior to January 1, 1978). Applicant Date Applicant Date Page -9-

15 Notice to Borrowers - City of Orem Refinancing/No Cash Out Policy It has been explained to me/us that the City of Orem s Housing Rehabilitation Loan will become a second mortgage on my/our property. The City of Orem will remain in second position until the loan is paid in full, and no requests for cash out will be approved under any circumstances and regardless of home equity. The City of Orem will not subordinate to any future refinancing that involves cash out to the borrower in any amount. The City of Orem will only subordinate in a streamline refinance where the borrower is seeking a better rate. Reasonable closing costs are allowed in a streamline refinance, but no cash may be taken out ahead of the City of Orem s loan. I/We have been advised to speak with the mortgage professional of our choice to inquire further about our future needs and the ability to refinance with a second mortgage that will not subordinate to a request that involves cash out. I/We acknowledge that I understand the refinancing policy of the City of Orem and received a copy of this document. Date: Signature: Date: Signature: State of Utah ss County of Utah: On the day of 20, ally appeared before me, who being duly sworn, acknowledged to me that he/she has read and understands the foregoing instrument and has executed the same. Notary Public Page -10-