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HomeMy WebLinkAboutResolution #0742 RESOLUTION NUMBER ~ ~~ A RESOLUTION REGARDING THE ADOPTION OF THE HOUSING REHABILITATION LOAN AND GRANT PROGRAM, POLICIES AND PROCEDURES. WHEREAS, the City of Canton, Illinois, through its Department of Community Development, has undertaken to provide housing rehabilitation loan and grant funds from financial resources provided by the Department of Housing and Urban Development through that agency's Community Development Block Grant Program; an d WHEREAS, it is deemed necessary to set forth, in advance, the Policies and Procedures by which housing rehabilitation activities will be governed. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CANTON, ILLINOIS: 1. That the Housing Rehabilitation Loan and Grant Program, Policies and Procedures, as attached, is herein approved and adopted. CITY OF CANTON, ILLINOIS ....- By Harlan E. Crouch, Mayor Attest: ancy es, ty Clerk f° a t~ ~r ~,. CITY OF CANTON, ILLINOIS HOUSING REHABILITATION LOAN AND GRANT PROGRAM POLICIES AND PROCEDURES Adopted by City Council July 5, 1977 TABLE OF CONTENTS Section Pa e 1. Discrimination 1 2. Loan or Grant Application Cut-Off Date 1 3. Housing Inspection 1 4. Scope of Work ~ 1 5. Estimated Cost of Housing Rehabilitation 1 6. Loan Interview 1 7. Applicant Eligibility 2 8. Loan Processing 2 9. Loan Counseling 2 10. Non-Bankable Loan Finding 2 11. Applicant Dissatisfaction 2 12. Income Qualification Requirements For A Housing Rehabilitation Loan Applicant, To Determine The Interest Rate To Be Charged 2 13. Calculation of Interest Reduction Payment 3 14. Types of Housing Rehabilitation Loans Which Can Be Made 3 15. Liens On The Subject Property 3 16. Prohibitions 4 17. Categories Of Housing Rehabilitation Loan Repayments 4 18. Calculation Of Interest Charged The Borrowers 5 19. Maximum Amount For A Rehabilitation Loan 5 20. Priority of Loan Reconstruction Activities 5 21. Rehabilitation Loans Requested Of The Lending Institution In Excess Of Eight Thousand Dollars ($8,000.00) 5 22. Loan Repayments 6 23. Maximum Repayment Term For A Housing Rehabilitation Loan 6 24. Maximum Term Of Interest Reduction Subsidy 6 25. Housing Rehabilitation Grants 6 2 6. Priority of Grant Reconstruction Activities 6 27. Loan and Grant Committee 6 2 8. Housing Rehabilitation Loan Guarantee 7 29. Maximum Term of A Loan Guarantee 7 3 0. Authorization For The Property Owner To Sub-Contract And/Or Furnish Labor 7 3 T, Notification To The Loan Applicant and the Department of Community Development Of Loan Approval Or Rejection By The Lending Institution 7 3.2. Notification To The Grant Applicant Of Grant Approval Or Rejection By The Loan and Grant Committee 7 33, Loan Closing 8 3.4. Securing Bids, Awarding Contracts and Supervision of the Housing Rehabilitation Work 8 35. Housing Rehabilitation Completion Release and Work Satisfaction Statement 8 36. Summary Of Funds Disbursed On Behalf Of The Borrower 8 37. Loan Application Disposition Report 8 38. Loan Closing Report 9 39. Delinquency Report 9 40. Rehabilitation Loan Funds 9 41. Statement of Balance of Loan Account 9 TABLE OF CONTENTS (CONT.) 4 z, Seperate Accounts g 4 3, Disbursement of Funds g 4.4. Authorized Signatures For Appropriation Fund Checks 10 4-.5, Payout of Loan Proceeds For Housing Rehabilitation 10 4 6. Penalties Which Can Be Charged A Qualified Property Owner 10 ~47, Obstructing Assigned Personnel 11 4g, Fraud 11 49. Abuse And/Or Wasting Of A Rehabilitated Structure 11 50. Termination 11 Appendix A - Income Qualifications For A Housing Rehabilitation Loan 12 Appendix B - Income Qualifications For A Housing Rehabilitation Grant 13 City of Canton, Illinois HOUSING REHABILITATION LOAN AND GRANT PROGRAM POLICIES AND PROCEDURES 1. Discrimination The staff members of the Department of Community Development, the Loan and Grant Committee, and the participating lending institutions of the City of Canton shall not be allowed to discriminate in any manner against or for a qualified property owner who shall apply for a rehabilitation loan or grant under the terms of this program. 2. Loan or Grant Application Cut-Off Date The Department of Community Development will establish an appropriate cut-off date for each designated area, after which date no loan or grant will be approved. If there should occur any undue time delay in the administration and/or implimentation of this program within the individual designated area, a new appropriate cut-off date extension will be implimented. 3. Housing Inspection All dwelling units located within a designated area, who apply for a loan or grant under the provisions of this program shall receive a housing code inspection by the Department of Community Development or its authorized representative. A written inspection report setting forth, in detail, all code violations must become a part of the loan/grant application file. 4. Scope of Work The Department of Community Development or its authorized representative will inspect the subject property and compile a written report on what items of the Housing Code Violation Report will be rehabilitated. The Scope of Work must become a part of the loan/grant application file. 5. Estimated Cost of Housing Rehabilitation After the Scope of Work has been developed, the Department of Community Development or its authorized representative will complete a written "Estimated Cost of Housing Rehabilitation" for.the subject property. The "Estimated Cost of Housing Rehabilitation" report must become a part of the loan/.grant application file. ,, 6. Loan Interview The loan applicant shall receive from the Department of Community Development a copy of the "Housing Code Violation Report", the "Scope of Work", the "Estimated Cost of Housing Rehabilitation" report and a Letter of Introduction addressed to the lending institution of his/her choice. All four documents will be delivered to his/her choice of lending institutions at the time of the loan interview. 7. Applicant EliQibilit The applicant will be informed by the finance officer of the lending institution regarding the type of program for which the applicant is eligible in accordance with the "Income Qualifications for A Housing Rehabilitation Loan" as shown in the attached Appendix A. Should the applicant income and/or family structure be less than that necessary to qualify for a Zero (0%) per cent interest loan or meet any one of the additional four criteria listed in "Qualification for a Rehabilitation Grant" listed in Appendix B, the applicant shall be eligibile for a rehabilitation grant. 8. Loan Processing When the lending institution finds that the applicant is eligible for a rehab- ilitation loan under the provisions of this program, the lending institution shall, in every respect, process the loan application in the manner by which is the custom for all loan applicants of that particular institution. 9. Loan Counseling The lending institution shall advise the applicant as to potential financial impact of the loan and offer information regarding any appropriate suggestions and/or alternatives in the manner by which is the custom for all loan applicants of that particular lending institution. 10. Non-Bankable Loan Finding Should the lending institution find that the applicant is eligible for a Housing Rehabilitation Grant, the applicant is not capable of repayment or finds that for other reasons the applicant does not meet the customary loan criteria, the lending institution shall immediately notify the Department of Community Development in writing and shall state to the Department of Community Development the reasons for their findings. The Department of Community Development shall notify the Loan and Grant Committee for their review and determination. Under no circumstances shall the lending institution authorize a rehabilitation loan, bankable or not, when the applicant qualifies for a Housing Rehabilitation Grant. 11. Applicant Dissatisfaction Should any applicant during or after the loan interview, but before the loan closing date, determine that he/she is dissatisfied with the findings of the lending institution, he/she shall notify the Department of Community Development immediately. The lending institution, during the loan interview, shall inform the applicant of this provision. Should the Department of Community Development and the applicant not come to a satisfactory agreement or understanding, the applicant may, upon request, go before the Loan and Grant Committee for their review and determination. 12. Income Qualification Requirements For A Housing Rehabilitation Loan Applicant,. To Determine The Interest Rate To Be Charged The initial Housing Rehabiliation Loans will consist of three (3) basic interest rate categories. Each qualified property owner will normally receive a loan with an interest rate from one (1) of these three (3) categories, based strictly on the property owner's TOTAL ANNUAL INCOME. The three (3) interest rate categories are: A. Zero (0%) per cent interest rate B. Three (3%) per cent interest rate C. Six (6%) per cent interest rate 13. Calculation of Interest Reduction Payment The Department of Community Development will pay to the lending institution the difference between the interest rate for which the property owner is qualified and the interest rate of the institution up to a maximum "add on" interest of eight (8%) per cent on zero (0%) per cent loans; five (5%) per cent on a three (3%) per cent loan; and two (2%) per cent on a six (6%) loan. 14. Types of Housing Rehabilitation Loans Which Can Be Made A. Installment Note Without a Lien On The Property This type of Housing Rehabiliation Loan can be approved and granted to those loan applicants who, in the opinion of the lending institution, have a credit worthiness coupled with the ability to repay the loan. B. Combination Short-Form Note And Mortgage With A Lien Upon The Property This type of Housing Rehabilitation Loan can be approved and granted to those loan applicants who, in the opinion of the lending institution have a credit worthiness coupled with the ability to repay the loan and the lending institution determines that a lien upon the subject property is necessary at the time of the loan approval. C. Long-Form Note and Mortgage Documents With A Lien Upon The Property Long-form mortgage loans can be approved, granted and made to loan applicants who have a credit worthiness coupled with the ab ility to repay the loan and the lending institution determines that a lien upon the subject property is required at the time of the loan approval. This type of Housing Rehabilitation Mortgage Loan will be of the Mortgage Lein Type. Also, this type of Housing Rehabilitation Mortgage Loan is required whenever: 1. The original amount of the Housing Rehabilitation Loan exceeds Eight Thousand Dollars ($8,000.00). 2. The Loan ratio exceeds Fifty (50%) per cent of the fair market value of the subject property "after" rehabilitation. 3. The loan refinances and/or combines any amount of prior housing indebtedness and the current costs for housing rehabilitation. 15. Liens On The Subject Property With a "Lien Type" Housing Rehabilitation Mortgage Loan, the property owner will pledge the property to be rehabilitated as collateral to secure the Housing Rehabilitation Mortgage Loan. The Housing Rehabilitation Mortgage Loan may be either a Senior First Mortgage Loan with a First Lien Position or a Junior Page four Mortgage Loan with a Second, Third, or Fourth Lien Position, as is required in those cases involving: 1. The original amount of the Housing Rehabilitation Loan exceeds Eight Thousand Dollars ($8,000,00). 2. The Loan ratio exceeds Fifty (50%) per cent of the fair market value of the subject property "after" rehabilitation. 3. The loan refinances and combines any amount of prior housing indebtedness and the current costs for housing rehabilitation. 16. Prohibitions A property owner can sell or exchange their property at any time; however, any existing loan made under the provisions of this program cannot be transferred and must be paid in full at the time of transfer of ownership. 17. Categories Of Housing Rehabilitation Loan Repayments Every Housing Rehabilitation Loan approved and granted under the terms of this Housing Rehabilitation Loan Prdgram, must make provision for the complete repayment of the full principal amount of money, which the property owner has borrowed, in accordance with the following contractual repayment agreements: A. Housing Rehabilitation Loan With Complete Repayment Of Principal And Interest (For Owner-Occupants; Not Exceeding Four Dwelling Units) This category requires a monthly repayment schedule for both principal and interest repayment at: 1. A contractual repayment amount per month for both principal and interest; however, some mode of repayment other than monthly may be agreed upon if in the best interests of the borrower and satisfactory to the lending institution. 2. A designated interest rate charged the qualified property owner, as set forth in Section 12. B. Housing Rehabilitation Mortgage Loan Which .Combines Any Amount Of Refinancing Of Prior Housing Indebtedness And The Current Costs For Housing Rehabilitation, With The Complete Repayment Of Both Principal And Interest (For Owner-Occupants And Landlords, Present and Absent; Any Number Of Dwelling Units) This category will be a Long-Form Housing Rehabilitation Mortgage Loan to finance the current costs of housing rehabilitation, but which may be added and refinanced, the outstanding Prior Indebtedness for a Mortgage Loan or a Contract for Deed and/or other types of Housing Indebtedness. Whenever any amount of refinancing is involved, the lending institution must be in a Senior or First Lien Position. It requires either a monthly, quarterly, semi-annual, or annual repayment schedule for both principal and interest at: 1. A contractual repayment amount per payment for both principal and interest. Page five 2. A designated interest rate charged the qualified property owner as set forth in Section 12. 3. A stated repayment term as set forth in Section 23. C. Housing Rehabilitation Mortgage Loan With Complete Repayment Of Principal and Interest (For Owner-Occupants With More Than Four Dwelling Units And Absentee Landlords) This category requires either a monthly, quarterly, semi-annual or annual repayment schedule for both principal and interest at: 1. A contractual repayment amount per payment for both principal and interest. 2. A designated interest rate charged the qualified property owner as set forth in Section 12. 3. A stated repayment term as set forth in Section 23. 18. Calculation Of Interest Charged The Borrowers The caleulatinn of_.interest charged the qualified property owner for a Housing Rehabiliation Loan under the terms of this Housing Rehabilitation Loan Program, will be: A. 1/12th the annual rate for a monthly repayment. B. 1/4th the annual rate for a quarterly repayment. C. 1/2 the annual rate for a semi-annual repayment. D. The full annual rate for an annual repayment. 19. Maximum Amount For A Rehabilitation Loan The interest subsidy reduction as provided through the Department of Community Development in this housing"rehabilitation program shall not be in effect for any loan made by any lending institution for an original amount or outstanding balance amount in excess of Eight Thousand Dollars ($8,000.00). 20. Priority of Loan Reconstruction Activities Rehabilitation loans may be used for any type of housing repair, replacement, or improvement provided that all violations of the housing code are eliminated first. 21. Rehabilitation Loans Requested Of The Lending Institution In Excess Of Eight Thousand Dollars ($8,000.00) None of the interest reduction categories will be applicable to a Rehabilitation Loan in excess of Eight Thousand Dollars ($8,000.00) under the provisions of this Housing Rehabilitation Loan and Grant Program. The loan applicant may request an exemption from the Loan and Grant Committee or may arrive at a satisfactory arrangement with the lending institution but it shall not include the utilization of interest reduction for any amount in excess of the stated maximum loan amount. Yage six '22. Loan Renavments The lending institution shall make every effort to base the Housing Rehabilitation Loan repayments in accordance with the qualified property owner's ability to pay. 23. Maximum Repayment Term for a Housing Rehabilitation Loan No housing rehabilitation loan approved or granted shall have a repayment term in excess of the estimated remaining economic life of the subject structure. However, when the Housing Rehabilitation Loan is made for minor, nominal, or short-life items, then the repayment term shall not exceed the life expectancy of the items to be rehabilitated. 24. Maximum Term of Interest Reduction Subsidy No housing rehabilitation loan approved or granted under the terms of this loan and grant program shall be entitled to an interest reduction subsidy longer than five (5) years. The qualified home owner and the lending institution may agree to any repayment period or refinancing of any existing mortgage; however, the interest reduction subsidy shall cease at the close of the fifth year for which the laon was approved and the homeowner shall be responsible for the total interest payment thereafter. 25. Housing Rehabilitation Grants In general, rehabilitation grants shall not be made to qualified property owners in excess of Five Thousand Dollars ($5,000.00). The money is not to be repaid and no lien attaches to the property. All grants are approved by the Loan and Grant Committee. All grants in excess of $5,000.00 may be approved by the Loan and Grant Committee when necessary to bring the sub3ect structure up to minimum housing code standards and the applicant is unable to qualify for the loan portion of this program. 26. Priority of Grant Reconstruction Activities Grant funds may be used for any type of housing repair, replacement, or improvement provided that all violations of the housing code are eliminated first. 2Z. Loan Committee The Loan and Grant Committee shall consist of the following three (3) persons: A. The Director of the Department of Community Development B. A representative of the participating lending institutions C. A citizen who is not representative of A or B of this section Page seven Any two (2) of these three persons is authorized to either approve, qualify or reject any loan or grant application submitted to the Committee. The decision of any two (2) members of the Loan and Grant Committee shall be binding on the Loan and Grant Committee as a whole. The decision of the Loan and Grant Committee shall be final. 2 8. Housing Rehabilitation Loan Guarantee When circumstances warrant, the Loan and Grant Committee may determine to "guarantee" a qualified home owner's request from the lending institution. This guarantee may include escrow or any other terms agreed to by the Loan and Grant Committee and the lending institution. Only the Loan and Grant Committee may determine to "guarantee" a funding request. 29. Maximum Term of a Loan "Guarantee" A "guarantee" on any loan as approved by the Loan and Grant Committee shall not exceed a period of five (5) years. Default of a loan after said five (5) years shall be the responsibility of the lending institution in total. 30 Authorization For The Property Owner To Sub-Contract And/Or Furnish Labor At the discretion of the Department of Community Development, the Department may allow the property owner to sub-contract and/or to furnish necessary labor when the Department is satisfied that the property owner is capable of succes- sfully functioning in this capacity and can furnish the Department with: 1. Written contracts with all sub-contractors which he/she will utilize on the project. 2. Written evidence that all sub-contractors utilized on the project are adequately and properly insured. 3. The Department is satisfied that the property owner is capable of furnishing any. or all of his/her labor for the project. 31. Notification To The Loan Applicant and the Department of Community Development Of Loan Approval Or Rejection By The Lending Institution Within five (5) working days after a Loan Application has been approved or rejected, the lending institution shall mail a letter simultaneously to the loan applicant and the Department of Community Development. If the Loan Application was approved the letter shall state the loan sum and repayment terms. It shall also state the required steps necessary to complete the loan transaction. If the Loan Application was rejected by the lending institution, the letter shall state the reasons for such rejection and shall further advise the loan applicant that an appeal may be made to the Loan and Grant Committee by contacting the Department of Community Development. 3 2 Notification To The Grant Applicant Of Grant Approval Or Rejection By The Loan and Grant Committee Within five (5) working days after a Grant Application has been approved or rejected by the Loan and Grant Committee, the Department of Community Devel- opment shall mail a letter to the grant applicant. If the grant application is approved the letter shall state the maximum grant amount authorized. If the grant application was rejected by the Loan and Grant Committee, the letter Page eight shall state the reasons for such rejection. There is no appeal from the decision of the Loan and Grant Committee. 3 3. Loan Closing The lending institution shall establish an appointment (date, time, and location) for tie Loan Closing. The Director of the Department of Community Development or his/her designee shall be in attendance. A Loan Closing appointment should be mutually agreeable to all parties. 3.4. Securing Bids, Awarding Contracts and Supervision of the Housing .Rehabilitation Work After loan or grant approval, the Department of Community Development will: 1. Secure bids from contractors to perform the rehabilitation work. 2. Award contracts to the contractors who were successful bidders and accepted by the property owner. The property owner will sign the actual contract for rehabilitation. 3. Inspect the work of all contractors and sub-contractors during the . horsing rehabilitation process. 35. Housinl~ Rehabilitation Completion Release and Work Satisfaction Statement When all of the rehabilitation work has been completed in full, the Department of Community Development will secure from the property owner a written and signed: 1. Work Completion Release, acknowledging that all of the rehabilitation work has been completed. 2. A Work Satisfaction Statement indicating his/her degree of satisfaction of the rehabilitation work which was done. 36. Summary Of Funds Disbursed On Behalf Of The Borrower A summary of all monies disbursed on behalf of the property owner (borrower) must be made available to the borrower upon the rehabilitation work completion. The borrower will sign and date the summary and his/her approval of the dis- bursements made in his/her behalf. A copy of the signed and dated summary is to be made available to the borrower. The original signed and dated summary is to be retained by the Department of Community Development. 37. Loan Application Disposition Report The lending institutions shall report to the Department of Community Development on a monthly basis, a detailed description of each loan application received by the institution. It will also contain the terms of each approved loan and the reason(s) for each loan rejection. Page nine 3.8. Loan Closing Report This report will detail all loans which were closed by the lending institution under the terms of this housing rehabilitation loan program during the previous calendar month and shall be mailed to the Department of Community Development. 39.. Delinquency Report This report shall contain information and a "Status Report" for each loan which becomes more than Thirty (30) days delinquent in loan repayment. This report shall be completed by the lending institution and mailed to the Department of Community Development. 40. Rehabilitation Loan Funds The Department of Community Development shall deposit a prescribdd amount of funds into an interest bearing account in a single lending institution. Checks payable to any .lending institution for interest reduction for a qualified loan applicant or amount withdrawn for an approved grant, shall be drawn from this account. 41. Statement of Balance of Loan Account The lending institution in which the Department of Community Development shall report monthly by written statement to the Department of Community Development the balance of said account. 42. Seperate Accounts In the instance where the Loan and Grant Committee has approved a loan "guarantee" or similiar arrangement with the lending institution, funds necessary to protect the institutions loan shall be kept within that lending institution. 43. Disbursement of Funds Only the Director of the Department of Community Development or his delegate is impowered to authorize or request a transfer of funds, as required, from time to time, to meet the following financial obligations of this Housing Rehabilitation Loan and Grant Program. These include but are not limited to: 1. The repayment of principal and/or interest due a local lending institution. 2. A transfer of funds to pay for any interest rate subsidy approved by the lending institution in accordance with this program. 3. A transfer of funds to reimburse another fund or financial source for the incurred default of a Rehabilitation Loan. 4. Any other appropriate type of payment and/or transfer required to admiminster this Housing Rehabilitation Loan and Grant Program. Page ten 44. `Authorized Signatures For Appropriation Fund Checks Every check drawn from the Housing Rehabilitation Loan and Grant fund account(s) shall require the signatures of any two (2) of the following three (3) authorized persons. 1. The Director of the Department of Community Development 2. The City Treasurer of the City of Canton 3. The Mayor of the City of Canton 45. Payout of Loan Proceeds For Housing Rehabilitation As the housing rehabilitation work progresses and bills are submitted to the Department of Community Development for payment, the Department is to: 1. Have all rehabilitation work and request payouts for work completed. 2. Secure a waiver of lien for all labor and/or materials from the contractor and/or supplier. 3. Secure authorization from the borrower for disbursement and approval of the rehabilitation work completed prior to disbursement. 4. Provide a letter to the borrower which states the above three (3) items are complete and the amount of funds to be dis Cursed. The borrower shall present such letter to the lending institution from which the loan was secured. 5. The lending institution shall issue a check payable to the borrower and the authorized contractors and/or suppliers. 46. Penalties Which Can Be Charged A Qualified Propert~Owner A. .Prepayment There will not be any form of a penalty or charge assessed, levied, or collected under the terms of this Housing Rehabilitation Loan and Grant Program, when the qualified property owner desires to prepay any amount for principal reduction or to prepay the entire outstanding loan balance prior to the maturity date of the housing rehabilitation loan. B. Late Charges At the discretion of the lending institution and after a borrower has been classified as a chronic delinquency problem, the lending institution may assess and charge the account of the delinquent borrower a late charge in conformance with institution policy. ' Page eleven ~47. Obstructin,~ Assigned Personnel Under the terms of this Housing Rehabilitation Loan and Grant Program, if the qualified property owner fails to provide access to the subject property or in any manner obstructs either: A. The staff member assigned to prepare the "Scope of Work" Report, or B. The staff member assigned to prepare the "Estimated Cost of Housing Rehabilitation" report, or C. The staff member assigned to inspect, review or obtain any ~iecessary documents or materials; the qualified property owner shall be informed of his/her obstruction in writing and -the loan or grant application shall be rejected immediately. 48. Fraud Fraud, at any time, on the part of the qualified property owner and/or borrower, will automatically and permanently terminate that person's eligibility to receive and/or obtain a Housing Rehabilitation Loan or Grant under the terms of this Housing Rehabilitation Loan and Grant Program. If the act of Fraud is not perpetrated and/or discovered by the lending institution or the Department of Community Development until after the loan closing, the Loan ailelc,Grant Committee or the lending institution must be terminated immediately and automatically and will require the complete loan or grant repayment in full at once. 49. Abuse And/Or Wasting of A Rehabilitated Structure If, at any time, during the term of the Housing Rehabilitation loan or grant as approved under the terms of this Housing Rehabilitation Loan and Grant Program, it is determined by the Department of Community Development, that the qualified property owner (borrower) has and/or is allowing a rehabilitated dwelling structure to be abused and/or wasted, the Department of Community Development can require the immediate and complete repayment of the Housing Rehabilitation Loan or Grant at once. The lending institution may institute foreclosure proceedings and/or any other action deemed necessary, in order to protect its investment and/or to maintain the quality and/or condition of a dwelling unit structure .within the neighborhood, after the rehabilitation of a designated area. 50. Termination The qualified property owner (borrower) will have thirty (30) days to pay the entire outstanding balance of the Housing Rehabilitation Loan or Grant, plus interest to the lending institution when a qualified property owner's eligibility has been terminated for: A. Obstructing assigned personnel as set forth in Section 47 B. Fraud as set forth in Section 48 C. Abuse and/or wasting of a rehabilitated structure as set forth in Section 49 pendix A .Income Qualifications For A Housing Rehabilitation Loan At Zero Per Cent Interest Rate with an ANNUAL INCOME of* 1 adult 2 adults 2 adults and 1 child 2 adults and 2 children 2 adults and 3 children $6,000.00 - $7,000.00 $7,001.00 - $7,775.00 $7,776.00 - $8,550.00 $8,551.00 - $9,325.00 $9,326.00 - $10,100.00 Income Qualifications For A Housing Rehabilitation Loan At Three Per Cent Interest Rate with an ANNUAL INCOME of* 1 adult 2 adults 2 adults and 1 child 2 adults and 2 children 2 adults and 3 children $8,000.00 - $9,000.00 $9,001.00 - $9,775.00 $9,776.00 - $10,550.00 $10,551.00 - $11,325.00 $11,326.00 - $12,100.00 Income Qualifications For A Housing Rehabilitation Loan At Six Per Cent Interest Rate with an ANNUAL INCOME of* 1 adult 2 adults 2 adults and 1 child 2 adults and 2 children 2 adults and 3 children $12,000.00 - $13,000.00 $13,001.00 - $13,775.00 $13,776.00 - $14,550.00 $14,551.00 - $15,325.00 $15,326.00 - $16,100.00 *For each additional adult or child in the household add $775.00. Appendix B •. Income Qualifications for A Housing Rehabilitation Grant This category will require no interest, no principal repayment and no lien on the subject property. The owner-occupant must: A. Have an annual income of less than $6,000.00, or B. Be in excess of 62 years of age, or C. Be retired on a nominal fixed income, or D. Be medically disabled and is unable to be gainfully employed as per doctors reports, or E. Be receiving limited assistance as the main source of income.