WHCA, Washington Hancock Community Agency
 

Home Repair Network Information

CDBG (Community Development Block Grant)

Each year Maine receives a formula allocation of funding from the Department of Housing and Urban Development (HUD) for the CDBG program. The funds are allocated to eligible communities and Community Action Programs (CAPs) through the Maine Department of Economic and Community Development (DECD).

Eligibility

  • Property must be Titled Ownership (deed) or a Life Estate. In the case of a Mobile Home, the Land must be Titled (deed) or if the land is on a rented lot the Bill of Sale for the trailer must be submitted. In the case of rented land, only improvements to the mobile home itself will be available through this program.
  • Income for the total household must not exceed 80% of Area Median Income (AMI) as shown in the HUD Section 8 limits at the time of application. Documentation from all forms of income for all household members must be included with the application. Documentation includes but is not limited to: wages, salaries, commissions, pensions, annuities, social security, TANF, general assistance payments, aid to the disabled, VA benefits, unemployment benefits, support/alimony, and other income such as interest, dividends, and rental income.
  • Liquid Assets (cash, or assets easily converted into cash such as bank deposits, money market funds, or US Treasury bills) may not exceed $5,000, or $50,000 for applicants who are sixty-two (62) or older.
  • Rental Properties are eligible up to a maximum of four (4) units in one building. For the building to be eligible a minimum of 51% of the tenants in the building must be income eligible. Please contact us for further information and eligibility requirements for rental properties.
  • There must not be a tax lien(s) on the property, and the property must not be in foreclosure. Please contact us if you have any questions regarding late taxes or late mortgage payments.
  • All applications are scored based on key criteria and are placed in either Low, Medium, or High priority ranking. Applicants found to be eligible are not guaranteed immediate assistance.

Eligible Repairs

  • Roofing
  • Siding and Trim Wrap
  • New Windows & Doors
  • Electrical, plumbing, and heating
  • Septic system replacement
  • Wells and Water Treatment Systems
  • Handicapped access
  • Other structural repairs
  • CDBG funds may be combined with other funding to replace a home if the condition warrants it. Please call for further information.

Pre-1976 constructed mobile homes

  • Pre-1976 mobile homes will be restricted to limited scope emergency projects only

Project Financing

  • Grants are awarded to those projects with an initial contract price of up to $7,500. These funds do not have to be repaid.
  • Deferred Forgivable Loans are awarded to those projects with an initial contract price greater than $7,500.
  •      Loans from $7,500 to $20,000 are forgiven at a rate of 20% per year for five (5) years
  •      Loans over $20,000 are forgiven at a rate of 10% per year for ten (10) years
  •      A deferred forgivable loan is a 0% interest loan with no payments due. A percentage of the loan is forgiven each year until the loan reaches $0. A lien will be put on the home for the term of the loan, with repayment of the loan balance due only if the property is sold during the loan term. Once the loan reaches $0 the lien is removed from the home.

Example 1: In 2017 you sign a loan for $10,000. Each year $2,000 is forgiven so that in 2022 you owe $0 on the loan and the lien is removed from the home.

Example 2: In 2017 you sign a loan for $10,000. Each year $2,000 is forgiven. You sell the home in 2019. Two years have gone by so the loan balance is now $6,000. Upon sale of the home WHCA will receive $6,000 for repayment of the balance of the loan.

  • Loan funds that are paid back (recaptured) are put back into the CDBG program for use on another project.

Maine Housing Home Repair Funds

Contingent on funding availability, the Maine State Housing Authority uses funds from the Real Estate Transfer Tax to fund its Home Repair Program. Maine Housing's program is similar to CDBG, with the following differences.

  • All financing is through grants. There is no lien required for this program.
  • The home must be a single-family home
  • Rental properties are not eligible for this program
  • Mobile homes must be 1976 or newer
  • Clients will generally not be eligible for more than one grant through the Maine Housing program

Further eligibility rules may apply. For more information, please call us at 610-5957 or email housing@whcacap.org

 
 
 

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