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The Property Rehabilitation Program helps income eligible homeowners in Anne Arundel County make substantial repairs to their homes. Rehabilitation work can include new roofs, installing or replacing heating and ventilation systems, upgrading electrical and plumbing systems, and corrections to health, safety and other code violations.

Typically, the program provides loans to eligible borrowers at a zero percent interest rate with payment deferred for 30 years. In most cases, you will make no payments on the loan for 30 years, unless you sell your home or transfer the title. Under certain circumstances, you may be required to repay the Property Rehabilitation loan if you refinance your first mortgage.

A Construction Specialist will work with you to prepare a construction work write-up and assist you in selecting a qualified licensed contractor. Once you have selected a contractor, the Construction Specialist will continue to work with you and the contractor to ensure that the work is being completed in a timely and satisfactory manner.

Am I eligible for the Property Rehabilitation Program?

To be eligible for this program you must:

  1. (1)  own and occupy a home in Anne Arundel County, excluding the City of Annapolis, and
  2. (2)  have a household income at or below the limits listed in the charts below.

Income Limits for a CDGB/HOME Loan
With No Payments

Household Size 1
Person
2
Person
3
Person
4
Person
5
Person
6
Person
Income Limit $45,500 $52,000 $58,500 $65,000 $70,200 $75,400

 

Income Limits for a State Deferred Loan

Household Size 1
Person
2
Person
3
Person
4
Person
5
Person
6
Person
Income Limit $30,850 $35,250 $39,650 $44,050 $47,550 $51,100

 

Income Limits for a State Loan
With Payments

Household Size 1
Person
2
Person
3
Person
4
Person
5
Person
6
Person
Income Limit $46,032 $52,608 $59,184 $65,760 $74,898 $86,420

As income limits are subject to periodic adjustments, you may want to call our office to confirm your eligibility.

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How do I apply for Property Rehabilitation funds?

Call (410) 222-7600 or e-mail info@acdsinc.org to request a pre-application, or download a copy here. If you call during non business hours, please leave a message requesting a pre-application for the Property Rehabilitation Program and leave your name, phone number and mailing address. A pre-application will be mailed to you on the next business day. Please complete the pre-application and mail it to:

Arundel Community Development Services, Inc.
2666 Riva Road, Suite 210
Annapolis, MD 21401

Upon receipt of your pre-application, we will send a letter confirming that your pre-application has been received and the name of the Housing Financial Advisor and Construction Specialist assigned to your case. A Housing Financial Advisor will then contact you to schedule a time to meet with you to take a full application and to explain the program.

Frequently Asked Questions

  1. How long will the entire process take?
  2. What is involved in the process?
  3. Can I choose my own contractor?
  4. What documentation will I need to provide to show I am income eligible?
  5. What are the loan terms?
  6. If I am within a certain income limit, can I be assured that I will not have to make a monthly payment?
  7. If I receive assistance, can I apply again if additional work is needed?
  8. What type of rehabilitation work is eligible under this program?
  9. Is it true that I may have to have more work done on my property than what I originally requested?
  10. What is an escrow account?
  11. Can I pay back the money I borrowed early?

1. How long will the entire process take?

Each job is different, depending on the amount of financial information needed, the amount of rehabilitation work to be completed, and the selected contractor’s timeframe. We estimate that the entire process could take about 12 months from the initial application.

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2. What is involved in the process?

After you submit an application, a Housing Financial Advisor will contact you to schedule an appointment at your home. The Housing Financial Advisor will go over income and asset documentation to make an initial determination of whether or not you are eligible for the Program. Our Construction Specialist will walk through the inside of your home and around the exterior and make an initial assessment of what your house needs to bring it up to code standard. After that, the Housing Financial Advisor will review your financial data, including credit, income and home equity, to determine your eligibility for the Program. If, after reviewing this data, there are concerns, the Housing Financial Advisor will work with you to resolve the issues. The construction procurement process cannot proceed until all financial issues have been resolved.

The Housing Financial Advisor will then run a financial feasibility analysis to determine what funds you qualify for and what type of funding is available. Simultaneously, the Construction Specialist will complete a construction feasibility analysis, which outlines the work needed and the estimated cost associated with that work. Once your case is approved for funding, the Construction Specialist will develop a detailed written scope of work and initiate the contractor procurement process. The Construction Specialist will then help you secure a contractor through a competitive bid process if you do not already have a contractor identified. Once a contract is drawn up, we will coordinate with other funding sources to ensure they are in place and final underwriting will occur. Once your loan is settled, ACDS will hold the funds in an escrow account and send a notice to the contractor for rehabilitation work to proceed. The Construction Specialist will work with you to review all work and approve any draw requests during the construction process. The Construction Specialist will also conduct a final inspection to ensure that all work was completed as specified.

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3. Can I choose my own contractor?

All contracts are between you, the homeowner(s), and the contractor. You may select a "preferred" contractor if you wish; however, the preferred contractor must be approved by ACDS before a construction contract is awarded. If you do not have a preferred contractor, a Construction Specialist will work with you
to develop a request for bids and solicit bids from qualified contractors. As a homeowner, you may select any contractor who responds to the bid request and meets our program requirements including our cost reasonableness test. The qualified contractor must be licensed and insured and provide evidence of home improvement experience.

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4. What documentation will I need to provide to show I am income eligible?

To document that you are eligible, you will need to provide copies of all sources of income you and your household members receive, including pay stubs, Social Security statements, child support statements, retirement statements, interest statements from bank and investment accounts, and income tax returns.


5. What are the loan terms?

Typically, the program provides loans to eligible borrowers at a zero percent interest rate with payment deferred for 30 years, depending on the funding source. In most cases, you will make no payments on the loan for 30 years, unless you sell your home or transfer the title. A below market interest rate may apply, depending on your income level and the funding source. Under certain circumstances, you may be required to repay the Property Rehabilitation loan if you refinance your first mortgage.

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6. If I am within a certain income limit, can I be assured that I will not have to make a monthly payment?

No. Your household’s income will be reviewed as part of the financial feasibility analysis to determine your household’s affordability. Your household’s affordability, or ability to make loan payments, will be determined through this process. Typically, however, homeowners with limited incomes are not required to make payments.


7. If I receive assistance, can I apply again if additional work is needed?

Yes; however, the availability of funding sources may be limited, based on the amount and the source of funds used to pay for previous work done on your home.

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8. What type of rehabilitation work is eligible under this program?

The program addresses all health, safety, and code related rehabilitation work, such as fixing a leaking roof or repairing a broken furnace. Other eligible repairs may include replacing windows and exterior doors, replacing defective plumbing and electric, replacing deteriorated flooring, removing peeling paint, and other health, safety or code related work. The Construction Specialist assigned to your case will come to your home to determine what repairs are eligible under the program. Accessibility modifications are also an eligible repair. For more information on the Accessibility Modifications Program, click here. Funds cannot be used to purchase furnishings or install luxury items such as hot tubs or Jacuzzis.


9. Is it true that I may have to have more work done on my property than what I originally requested?

It is possible that the Construction Specialist may identify work to be done in addition to the work you requested. This happens because there are funding and program requirements such as weatherization related work to conserve energy, maintenance related work to eliminate future repairs and code related work to eliminate health and safety threats. The Construction Specialist will visit your home and identify any such conditions that will need to be included in your scope of work. The Construction Specialist will then review the proposed scope of work with you and answer any questions you may have concerning the work.

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10. What is an escrow account?

An escrow account is like a savings account. It is established to ensure money is available when your property taxes and homeowners insurance come due. To ensure there is enough in the account to pay the taxes and insurance, many loans funded through the State will require you to send their mortgage servicer one-twelfth of your tax bill and one-twelfth of your annual insurance premium every month. This provides both you and the State the assurance that there will be enough money to pay the taxes and insurance when they are due.


11. Can I pay back the money I borrowed early?

Yes, there is no penalty for paying your loan off early. However, if you are interested in making monthly payments in order to pay off your loan, you will only be able to do that with a loan funded through the State Special Loan Program; a loan funded with CDBG monies cannot accept monthly payments.

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