The process should take a minimum of 3 months from loan application to closing. This is before any construction begins. The length of time can vary and depends mainly on the applicant supplying all of the requested documentation to our office and how quickly the applicant can solicit a minimum of two bids from licensed general contractors (process requires a 30 day bid period).

A 0% deferred payment loan is a loan that that requires no monthly payment and charges no interest, but there is a recorded mortgage on the property that must be paid in full to the City upon sale of the property.

All work completed through the OHCD must be completed by Licensed and Insured General Contractor’s.

An “Affordable Housing Restriction” lien is placed on your property for a predetermined number of years. This allows the OHCD to inspect your property to make sure that there are no Code Violations, to ensure that your property is rented to low/moderate income tenants, and that the rent you charge is affordable. OHCD monitors tenants’ rent and income once per year, and is done through the submission of a form completed by the tenants living in the “Restricted” Units.

HUD guidelines state that we calculate the gross income, before any deductions, of all household members over the age of 18 years.

The Office of Housing & Community Development (OHCD) offers partial grants to low-and-moderate income, owner-occupants of 1-4 family properties–up to $2,500 for necessary home improvements, particularly those that will bring your property into compliance with building codes. After that, the money is given as a low- interest loan (3%). You must meet federally determined income limits.

No. Based on the program requirements, only Licensed General Contractors may bid on your project when a rehabilitation specialist from OHCD has completed the bid specifications for the proposed scope of work.

No. The homeowner selects the licensed contractor after the rehabilitation specialist from the OHCD has completed the Bid Specification packages. The OHCD requires that homeowners obtain a minimum of two (2) contractor bids

The OHCD must first correct any code violations and comply with Minimum Housing Quality Standards. A rehabilitation specialist will determine the scope of work at his initial inspection of the property.

Once the completed application is received, it can take anywhere from 1 – 3 months depending on the ability to obtain bids from contractors.

No, money will be provided as a reimbursement once the approved work has been reviewed, authorized, completed and paid for by the applicant.

All household income is counted when determining eligibility for down payment/closing cost assistance.

All participants in our Neighborhoods First program are required to complete homebuyer counseling from an approved agency. Check at www.chapa.org for the list of approved agencies.

All properties purchased through our program must be considered “lead safe” and meet minimum housing quality standards and building codes. We do have funds available to help rehabilitate properties, but usually “fixer upper” properties are NOT “lead safe” and need substantial rehabilitation. Therefore, a fixer upper would not be considered a good purchase through this program. Remember, for properties built before 1978: NO peeling, flaking, chipping, scaling, cracking, chalking paint. ALL PAINTED SURFACES MUST BE INTACT.

The OHCD receives federal funding through the HOME Investment Partnership Program [HOME] and the Community Development Block Grant [CDBG] program from the U.S. Department of Housing and Urban Development [HUD]. In addition to these federal funds, OHCD also administers state programs on behalf of the Massachusetts Housing Partnership Fund [MHP], the Department of Housing and Community Development [DHCD] and MassHousing.

What if my income is above these income limits?

Why are there so many rules and regulations?