PROGRAMS OFFERED

The Housing Rehabilitation Programs through the Grants Office of the City of Gloucester, offers deferred and low interest loans to owner occupied homeowners, and investment property (1- 4 units).

Funding is provided by the U.S. Department of Housing and Urban Development through the Community Development Block Grant Program. The Housing Rehabilitation Program will provide assistance in eliminating code violations, serious health and safety issues which DO NOT disturb lead paint. If you have a lead certificate or your home was built after 1978 you will also qualify. If you want extensive rehab or rehab that disturbs a painted surface, you will need to participate in the Mass Housing “Get the Lead Out” Program first. Contact Linda Brayton, Action, Inc., at 978 325 9123. 

OWNER OCCUPIED PROGRAMS & QUALIFICATIONS

High Priority is owner occupied multi family; Moderate Priority is owner occupied single family.  The property owner and/or tenant income MUST fall within HUD Income Guidelines (click on application below).  Funding assistance received is in the form of a zero (0%) deferred loan or three (3%) interest loan amortized over fifteen (15) years, depending on your income bracket.

INVESTOR PROGRAM & QUALIFICATIONS

Low Priority is investor property containing 1 to 4 units.  The Grants Office will provide a five percent (5%) interest loan amortized over fifteen (15) years to assist investors of residential rental properties.

To qualify:
a. 51% of all tenants must meet the HUD Income Guidelines (click on application below) 
b. Each tenant must fill out a tenant application form (click here for tenant form)
c.  Investor will sign affordability Housing Restriction Agreement with the City of Gloucester.  (Income and rent restricted for 15 years)

GENERAL PROGRAM INFORMATION

o The owner will obtain 3 bids and select the most capable contractor.

o You will be required to sign an Owner/City Contract & Mortgage.

o A mortgage lien will be recorded at the Southern Essex District Registry of Deeds. A $175 recording fee will be required made payable to the Registry of Deeds and will be your responsibility.

o All loans are payable in full upon sale, title transfer or refinancing with cash out (allowed once per loan).

o The Rehabilitation Specialist will periodically inspect the work; however, the owner is encouraged to manage the project.

o Payments are made to the homeowner upon receipt of an invoice and approval of work by the Rehabilitation Specialist.

o This office follows the guidelines of the Uniform Relocation Act of 1970. No tenant will be evicted due to rehab efforts funded by the CDBG Programs. If it’s necessary for a tenant to be temporarily relocated, the owner will provide a "decent, safe & sanitary temporary unit".

o Rental Units - all units must remain "affordable" for a period of 15 years. The owner agrees to rent rehabilitated units with no more than 10% annual increases allowable up to maximum of HUD Fair Market Rents to low to moderate income tenants.   The owner will sign an Affordable Housing Restriction Rental Unit agreement with the City of Gloucester to insure compliance. All units will be monitored on a yearly basis. 

o NO loans will be processed if there are any outstanding city fees or property taxes.

o If work has already begun, you may not participate in program.

o If project is too cost prohibitive, the Grants Office reserves the right to refuse the application.

Application MUST include a copy of the property deed.


Application for Housing Rehab Programs:  Housing/Rehabilitation Application

Related Links: Mass Housing Get the Lead Out Program 
                     Action, Inc. Get the Lead Out Program