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1. Who is eligible for a Major Home Rehabilitation loan?

City of Livonia Residents who meet the following requirements are eligible for a Major Home Rehabilitation loan:

• Have assets that do not exceed $50,000 (not including home and car)
• Have current homeowner's insurance
• Have property taxes and water bills paid to date
• Meet the current income guidelines as determined by Housing and Urban Development
• Own and occupy their home for at least one year (Land contracts are not permitted)

2. What are the income guidelines as determined by Housing and Urban Development?

Total gross annual household income must not exceed the following guidelines and are subject to change annually:

Family Size (Maximum)	Allowable Income
1	$42,750
2	$48,850
3	$54,950
4	$61,050
5	$65,950
6	$70,850
7	$75,750
8	$80,600

3. What types of home improvements will qualify for the Home Rehabilitation Loan Program?

Most home repairs qualify which will bring the home up to applicable City of Livonia building codes. The program is primarily designed to correct those items that affect the health and safety of the occupants.

Examples of eligible improvements:

• Correction of local housing code violations
• Emergency Improvements as defined by the Department to address health and safety issues
• Lead-Based paint hazard reduction
• Permanent general improvements (those which improve the basic livability of a home)
• Physical accessibility improvements
• Weatherization improvements (i.e. windows, siding and insulation)

Examples of ineligible home improvements:

• Acquisition of land/property
• Cost of materials for do-it-yourself projects
• Materials, fixtures, equipment that exceeds that customarily used in the neighborhood
• New construction
• Non-permanent general improvements (i.e. carpeting)
• Refinancing of other debts

4. Who determines what repairs are completed?

The Community Development Housing Rehabilitation Specialist, a professional lead inspector, and City of Livonia Building Inspectors perform detailed inspections to confirm and/or identify required and optional repairs. Using those reports, the Housing Rehabilitation Specialist will write up a proposal to outline the scope of work to be done, this will then be presented to the homeowner for approval.

5. How is the work completed?

The Housing Rehabilitation Specialist will invite at least 3 licensed and insured contractors to attend a walk-through of your home with you present. The contractors submit a bid proposal. The Office of Community Development will take the lowest, responsible bid and present it to the Rehabilitation Loan Committee. The Committee approves the homeowner's application and the award of the home improvement contract. A contract signing is scheduled, with repairs to follow.

6. How much money may I borrow?

Depending on the range of repairs, loan amounts are available from $5,000 to $15,000 is available to borrow. Some loans may exceed this limit under certain circumstances.

7. How do I pay for the loan?

No monthly payments are required! No monthly payments are required! The principal and all interest (if applicable) shall be paid in full when the borrower(s):

• Cease to occupy the property
• Death of all borrowers
• Loss of the property through court action or involuntary asset transfer
• Sell or transfer the property

Records

The Home Improvement Loan Mortgage is recorded with Wayne County Records, producing a lien on the property. The lien will remain on the property until the Home Improvement Loan is paid, at which time the mortgage will be discharged.

Additional Payments

Want to make one or more payments anyway? You certainly can! Payments must be $100 or more, excluding final payment, which must total the full balance owed. When you make payments on any loan that has an interest rate, those payments are applied directly to the principal balance which reduces the amount of interest you would owe. If you were able to make full payment within five years from the date of the loan, all interest would be forgiven.

If partial payment is made within five years from the date of the loan, the interest charged on the portion paid will be forgiven at the time of full repayment. But remember, only one payment is required!

8. How often may I apply for a loan?

You may apply for a loan once every 10 years. Should building, site, or mechanical code violations exist and be documented, an eligible resident may seek an additional loan.

9. What do I need to bring to the appointment?

In order to apply, the applicant is required to provide the items listed on page two of the application (PDF).These items are necessary in order to qualify the applicant for a loan and must be provided at the time of intake. All files will remain confidential. Please call 734-421-6450, ext. 104 to make an appointment and for additional information.

Please be advised that all rules and regulations governing Community Development Programs are subject to change without notice by the Department of Housing and Urban Development (HUD) and the City of Livonia.

10. How do I apply for a Home Rehabilitation Loan?

Interested homeowners should contact the Livonia Housing Commission Office of Community Development or call them at (734) 421-6450, ext. 104  to make an appointment and request an application.

For more information view the Program Brochure (PDF), and the Loan Application (PDF).