Low-interest loan program helps St. Joseph residents with home repairs
By Charles Christian
People in St. Joseph who meet income requirements may be eligible for a loan and grant program to assist with home repairs and safety.
The city’s Housing Rehabilitation Loan Program and Weatherization Grant is guided by requirements from the Department of Housing and Urban Development (HUD). Mary Kay Griffin, a manager of the program for the city, said the program begins with an application and a property evaluation from an inspector from the city.
“Once we get the inspection report,” Griffin said,”we determine what things need to be done.”
The city then seeks bids from companies specializing in the repairs or upgrades needed, and HUD requires that they take the lowest bid. Once all is approved, the owner of the home is given a loan and grant that is 75% grant and 25% low-interest loan of 2%.
“The loan portion of the overall project is at 2%, and is paid back when the owner sells the property,” Griffin said.
All applicants are income qualified, and Griffin estimates that, based upon HUD guidelines, a family of four usually has a total household income of no more than 80% of the area median income. For St. Joseph, this number is about $46,000 per year for an individual, in order to qualify for the program. Also, applicants must be residents of the home for at least six month prior to acceptance, which means the house must be livable.
“With the rehabilitation portion, we do things such as painting or siding,” Griffin said. “Lead abatement is a big issue, because lead-based paint is a big issue here in St. Joseph.”
Other weatherization components covered under this program include HVAC replacement. Griffin said each house is evaluated on a case-by-case basis after overall needs have been assessed by authorized inspectors. No out-of-pocket money is required from the recipient of the loan/grant up front, according to the city of St. Joseph, based upon HUD guidelines.
“The ultimate goal is to keep people in their house,” Griffin said.
While there is a waiting list, the city said it seeks to move as quickly as possible based upon the priority of the need. Griffin also added that if there is a life-threatening situation or an emergency that threatens the home — such as a water line break — a separate grant is available through the city to restore a safe living environment in the home.
For more information on the program, interested applicants can call the city’s Community Development Office at (816) 271-4643, or drop by the first floor of City Hall for an application.
