Renovation / Rehabilitation Loan Products

Baltimore City Lead Abatement Action Project (LAAP)

The Lead Abatement Action Project provides money to property owners to renovate residential or rental properties in Baltimore City to make these units lead safe.

What are the benefits?
For homeowners, up to 100% of the cost of making your home lead safe may be covered.
For landlords, up to 80% of the cost of making a unit lead safe may be covered, with a maximum of $5,000 per unit.

What else do I need to know?
Landlords must agree to keep rents affordable for low– and middle-income tenants for at least five years.
The program is specifically interested in creating lead-safe housing opportunities for low-income families with young children.
The LAAP will develop a scope of work that is appropriate to the condition of the house.  The scope will include window, floor, door, trim, wall, paint, exterior, and cleaning treatments

For more information, contact:
Baltimore City Health Department
312 North Charles Street, Suite 400
Baltimore, MD 21201
Phone: 443.984.3934
Website: www.baltimorehealth.org or www.leadsafe.org

City Housing Assistance Program (CHAP)

This program, offered by the Baltimore Housing office of Rehabilitation, provides below market-rate rehabilitation loans for major repairs to owner-occupied properties.

What are the benefits?
A loan of up to $20,000 at variable interest rates from 0%-6% depending on income levels.  Loan terms vary from between 10 and 20 years.

What else do I need to know?
The combined yearly household income for the homeowner must be less than 80% of the Baltimore City median income level.
Eligible homes may not exceed 2 dwelling units, but can include condominiums.
Eligible homes must be occupied by the owner.
Application fees and closing costs can be included in the loan amount.

For more information, contact:
Baltimore Housing
Office of Rehabilitation
417 E. Fayette Street, Suite 1125
Baltimore, MD 21202
Phone: 410.396.4151
Website: www.baltimorehousing.org/ps_rehab.asp

Deferred Loan Program

This program, offered by the Baltimore Housing Office of Rehabilitation, provides rehabilitation loans for critical repairs to properties owned by very low income households.

What are the benefits?
A loan of up to $10,000 at a 3% interest rate.  No monthly payments are made, and all payments are deferred until after the sale or transfer of title to the property.

What else do I need to know?
The combined yearly household income for the homeowner must be less than 50% of the Baltimore City median income level.
Eligible repairs can include accessibility improvements for elderly/handicapped homeowners.
Eligible homes may not exceed 2 dwelling units, but can include condominiums.
Eligible homes must be occupied by the owner.
Application fees and closing costs can be included in the loan amount.

For more information, contact:
Baltimore Housing
Office of Rehabilitation
417 E. Fayette Street, Suite 1125
Baltimore, MD 21202
Phone: 410.396.4151
Website: www.baltimorehousing.org/ps_rehab.asp

Healthy Neighborhoods, Inc.

Home Renovation Loan

If you live within the boundaries of a Healthy Neighborhood but not on a target block, you may be eligible for this home renovation loan.

What are the benefits?
Between $5,000 and $40,000 loan,

What else do I need to know?
No owner financial investment is required.
Permanent interest rate will be Prime minus 1%, established at time of application and fixed for the term of the loan.
The maximum loan term will be 10 years.
Until rehabilitation is complete, Bradford Bank will charge the prime rate of interest with a floor of 6%.

For more information, contact:
Healthy Neighborhoods, Inc.
2 East Read Street
Baltimore, Md 21202
Phone: 410.332.0387
Website: www.healthyneighborhoods.org

Healthy Neighborhoods, Inc.

Refinance and Renovate Loan

If you already live in a Healthy Neighborhood on a target block, this loan can be used to refinance your existing mortgage and lend you additional funds to update your home.

What are the benefits?
Current residents can borrow up to 120% of the after-rehab value of the house.  The ability to borrow more than the value of the house is unique to Healthy Neighborhoods.

What else do I need to know?
This loan has a fixed rate that is always 1% below the 60-day Fannie Mae rate.
The term is 30 years.
This loan requires no private mortgage insurance.
Design assistance from an architectural form is available at no cost to help buyers plan improvements and review contractor proposals.

For more information, contact:
Healthy Neighborhoods, Inc.
2 East Read Street
Baltimore, Md 21202
Phone: 410.332.0387
Website: www.healthyneighborhoods.org

HUD 203K Rehabilitation Loan Program

The Section 203(k) program is the Department of Housing and Urban Development's (HUD) primary program for the rehabilitation and repair of single family properties.

What are the benefits?
The borrower can get just one mortgage loan, at a long-term fixed rate, to finance both the acquisition and the rehabilitation of the property.

What else do I need to know?
The mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.
The property must be a one- to four-family dwelling.
Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.
Luxury items and improvements are not eligible as a cost rehabilitation.
All health, safety and energy conservation items must be addressed prior to completing general home improvements.

For more information, contact:
Department of Housing and urban Development (HUD)
Website: www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

Lead Elimination Action Project (LEAP)

This program provides replacement windows and clearance testing for enrolled properties that meet risk reduction standards. LEAP is a matching grant program, so no direct cash assistance is available.

What are the benefits?
Free replacement windows and free clearance testing as part of lead abatement program.

What else do I need to know?
Homeowners, landlords and tenants are eligible.
Property must be accepted into the program.  Once accepted, a scope of work is developed. Property owner or tenant is responsible for completing the intial phase of the work.  Property owners must meet risk reduction standards by removing chipping, flaking, or peeling paint; repairing any structural problems that cause paint flaking; making sure doors do not rub on lead-painted surfaces; and making all floors smooth and cleanable.
Once the risk reduction standards are met, the Coalition to End Childhood Lead Poisoning will install new windows and provide dust clearance testing free of charge.

For more information, contact:
Coalition to End Childhood Lead Poisoning
2714 Hudson Street
Baltimore, MD 21224
Phone: 410.534.6447
Website: www.leadsafe.org

Maryland Housing Rehabilitation Program (MHRP)

MHRP is a state-wide program that offers below market-rate rehabilitation loans to correct health safety violations and major system deficiencies (HVAC, furnace, boilers, water heaters, etc.) on owner-occupied properties.

What are the benefits?
Loans of up to 95% of the property value may be made available to eligible households.  Interest rates will vary from 0% to 7%, depending on income levels.

What else do I need to know?
Loan terms may vary up to 20 years with deferrred payments allowed for households below 50% of the state median income.
All application fees and closing costs are included in the loan amount.
The program is available to households earning below 80% of area median income levels.
Eligible homes can include condominiums, but may not exceed 4 dwelling units. The owner must have title to the property and can assume new debt.
Eligible homes must be occupied by the owner.

For more information, contact:
Baltimore Housing
Office of Rehabilitation
417 E. Fayette Street, Suite 1125
Baltimore, MD 21202
Phone: 410.396.4151
Website: www.baltimorehousing.org/ps_rehab.asp

Maryland Lead Hazard Reduction Grant Program

The Maryland Department of Housing and Community Development (DHCD) provides grants and loans to help home owners and landlords make their property lead safe.

What are the benefits?
A loan or grant of up to $15,000 per home or apartment. The financial assistance provided (grant or loan) will be based on the applicant’s ability to repay.

What else do I need to know?
Primary homeowners and landlords of rental properties are both eligible for this program.
There are no income limits.
The work plan must fully address all of the lead hazards present in the project.

For more information, contact:
Maryland Department of Housing and Community Development
Special Loans Programs
100 Community Place
Crownsville, Maryland 21032
Phone: 410.514.7565 or 800.492.7127
Website: www.dhcd.state.md.us/Website/programs/lhrglp/lhrglp.aspx or www.leadsafe.org

SCOPE / Project 5000

The SCOPE (Selling City Owned Properties Efficiently) Project is designed to create a simplified and cost effective process for putting vacant and underutilized City owned properties on the open market and into the hands of responsible buyers.

What else do I need to know?
Properties are selected by the city and offered to realtors who list them in the statewide Multiple Listing Service (MRIS).
Buyers need to demonstrate financial capacity to fully redevelop the properties in order to be awarded and settle on a property.
The cost estimates are based on rough square footage and supplied for feasibility purposes and may be subject to change upon further inspection of the properties.
In most cases, offers are accepted on SCOPE properties for a pre-determined period of time, at which time they are are reviewed by the City.

For more information, including a list of current properties, contact:
Baltimore Housing
Office of Real Property Disposition
Phone: 410.396.4109
Website: www.baltimorehousing.org/ps_developers_scope.asp

Senior Roof Repair Program

This program offered by the Baltimore Housing Office of Rehabilitation, provides loan funds to homeowners ages 62 and older, who need to repair roofing systems of owner-occupied properties.

What are the benefits?
This loan provides an Easement up to $5,000 for repairs. The grant amount is reduced 20% for each year of occupancy after the award is made. After five years of occupancy, the owner has no obligation to repay.

What else do I need to know?
The program is available to households earning below 50% of area median income levels.
Homeowners must be 62 years of age, and have title to the property and provide copy of the deed
Eligible homes may not exceed 2 dwelling units.
Eligible homes must be occupied by the owner.
Homeowner must have current homeowners insurance on the dwelling.
All application fees and closing costs are included in the loan amount.

For more information, contact:
Baltimore Housing
Office of Rehabilitation
417 E. Fayette Street, Suite 1125
Baltimore, MD 21202
Phone: 410.396.4151
Website: www.baltimorehousing.org/ps_rehab.asp