The Property Rehabilitation Program helps low and moderate income Anne Arundel County, South Baltimore City, and City of Annapolis homeowners make substantial repairs to their homes by providing low or zero interest loans (usually with no payments) and technical assistance. Rehabilitation work can include the installation of new roofs, heating and ventilation systems, electrical systems and plumbing systems, and/or corrections to health, safety, and other code violations. ACDS staff assists clients with determining the scope of work, completing all financing documents, selecting a qualified contractor, and ensuring the work is completed in a timely and satisfactory manner.
Must own and occupy the subject property and have a household income that does not exceed 80% of median income.
The property must be located within South Baltimore City and Anne Arundel County, MD, including the City of Annapolis, and must be the borrower’s primary residence.
Eligible properties include townhouses, single family detached homes, and/or condominiums.
Maximum Loan Amount
Up to $40,000 is available through ACDS and depending on the scope of work and borrower eligibility, additional funding may be available through the State of Maryland’s Special Loan Programs.
0%, No monthly payment required (ACDS funding)
0%-6%, interest rate depending on household income (State funding)
Borrower’s total household income cannot exceed 80% of Area Median Income, adjusted for family size. View income limits here.
(effective June 28, 2019)
Borrower’s total household income cannot exceed the following*:
|Income Limits for federal financing|
Income Limits for State Financing
Maryland Special Loan Programs (State)
50% of area median income – deferral permitted with no affordability
60% of area median income – loan with payment 0% – 4.5%
80% of area median income – loan with payment 4.5% – 6.0%
Maximum Loan to Value Ratios
For ACDS funding, a loan cannot exceed 120% of the home’s value.
For Maryland Special Loan Program funding, a loan cannot exceed 110% of the home’s value.
Can I pay back the money I borrow early?
Yes, you can pay the entire loan back in full before the due date without penalty.
How long does the entire process take from application to completion of work?
Each project is different, depending on the amount of financial information needed, the amount of rehabilitation work to be completed, and the selected contractors’ timeframe. We estimate that the entire process could take approximately six months from the initial application submission.
Will I have to leave the house?
Typically, our Property Rehabilitation clients can remain in their homes while rehabilitation work is taking place. In rare cases, the scope of work will require homeowner-occupants to leave the home while construction is taking place.
Eligible Repairs for 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 and work with you to put together a scope of work for the project.
Accessibility modifications are also an eligible repair. Read more about the Accessibility Modifications Program here. Funds cannot be used to purchase furnishings or install luxury items such as hot tubs or Jacuzzis.
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.
Rehabilitation loans are made and secured in the form of a lien mortgage. The amount depends on the eligibility of the borrower, program guidelines, source of financing, and the scope of the rehabilitation work.
Most rehabilitation loans are non-interest bearing (0%) and monthly payments are deferred. However, in some cases, depending on the borrower’s income, other financial obligations, and source of funding, borrowers may be charged a below market interest rate and be required to make monthly payments.
The loan is due and payable in full when the house is sold, title is legally transferred, no longer owner occupied, upon default/acceleration of the first mortgage, or thirty years from the original settlement date.
All subordination requests for refinancing are reviewed on a case-by-case basis. The loan funds may be due and payable at the time of refinance.