Locally Funded Housing Rehabilitation Repayable Loan Program
Introduction to the Locally Funded Housing Rehabilitation Repayable Loan Program
The Locally Funded Housing Rehabilitation Repayable Loan Program is made possible by the City of Ottumwa's City Council (City). The Housing Rehabilitation Division of the Department of Planning and Zoning administers the program.
The program is designed to assist qualified existing homeowners, who do not qualify for other federally funded housing programs administered by the City.
The program provides for repayable loans to qualified applicants that cannot obtain a housing loan from other sources. A credit check is conducted to ensure the City will be repaid under the terms of the mortgage loan.
The qualified applicant is required to sign a mortgage and promissory note, placing the property as collertal for loan funds until the loan is paid in full.
The dwelling must be an existing dwelling, located in the corporate city limits of Ottumwa. (Rehabilitation of a mobile home is not eligible.)
Dwellings purchased on a recorded land contract are required to have the original deed holder's written permission to have a second mortgage filed against the property, as they will be responsible for the repayment of the mortgage if you default on the loan.
Property taxes are required to be current and will be verified.
A qualified applicant must have a source of income, which can be verified, in order to repay the loan.
Applicant's credit history will be reviewed to determine if you can repay the loan.
Emergency Housing Rehabilitation Loans
Emergency Housing Rehabilitation Loans may be provided up to a maximum of $3,000 for repairs to qualified applicants for:
- Dwelling Heating system emergency repair or replacement that has been tagged by the utility company or city building inspector.
- Residential electrical systems - emergency repair or replacement that has been tagged by the utility company or city building inspector.
- Residential plumbing system - emergency repair or replacement that has been tagged by the utility company or city building inspector.
Placard or Near Placard Residential Dwellings Rehabilitation Loans
Qualified applicants may qualify for a maximum of $10,000 for repairs for dwellings that have been placard by the Health Department or dwellings that are near being placard by the city.
- Items listed on the deficient list provided by the city-building inspectors.
- Residential electrical systems - emergency repair or replacement that has been tagged by the utility company or city building inspector.
- Residential plumbing system - emergency repair or replacement that has been tagged by the utility company or city building inspector.
- Dwelling Heating system emergency repair or replacement that has been tagged by the utility company or city building inspector.
- Residential Water System tagged by the Water Department
- Water heater repair or replacement.
- Roof repair or replacement.
- Porches, repair or replacement of existing porch flooring, ceiling, railing, steps or hand railings.
- Foundations may be repaired if the foundation is in danger of collapsing, and the structure is structurally sound.
- Exterior residential doors; same size.
- Window replacement of the same size.
- Structural, incidental or general non-luxury repairs.
Program Requirements
Basic requirements for participation in the Locally Funded Housing Rehabilitation Loan Program include:
- Property owner must qualify as a low-income household and must reside in the residence at completion of rehabilitation.
- All City, County, and School taxes must be paid current (no delinquent taxes).
- The dwelling unit must be substandard before, and must meet City of Ottumwa Housing Code after housing rehabilitation assistance.
- Deed must be free of Mechanic's Liens.
- Applicant is required to pay a $25.00 non-refundable loan application fee.
- Dwelling must be feasible for rehabilitation and structurally sound as determined by the City's inspector.
- Applicant must be the homeowner/occupant of the dwelling.
- Applicant must be the owner of the placard dwelling and have a repair list on file with the Health Department.
- Dwelling must be located within the corporate city limits of Ottumwa.
- Applicant is subject to a credit check, to prove they are capable of repaying this loan.
- Applicant must have a source of income that can be verified.
- Applicant is only eligible to receive one Locally Funded Housing Rehabilitation Loan within their lifetime.
- Dwelling/property address is only eligible to receive any type of housing rehabilitation, as administered by the City of Ottumwa, within twenty (20) years of the work being completed.
- Applicant and/or dwelling can not have received prior assistance under any of the following programs:
- Federal Emergency Management Agency (FEMA)
- HOME Assisted Homebuyer's Housing Rehabilitation
- HOME Homeowner Occupied Housing Rehabilitation Program.
- Flood Funds from the Area XV Regional Planning Commission,
- Locally Funded Housing Rehabilitation Program.
- Dwellings that are being purchased on a contract,
- Must be recorded at the Wapello County Court House,
- Contract Deed Holder is required to sign acceptance agreement to accept a second mortgage being filed against their property
- Land Contract Holders are required to agree to and make the payments if you default on the City's second mortgage.
- Contract Deed Holder is required to sign the second mortgage and promissory note before assistance is made.
- A homeowner making an application is not guaranteed housing assistance.
- Loans that are provided and not repaid as scheduled, are sent to a collection agency for collection after three (3) monthly payments are missed. This can have an adverse effect on your credit rating.
- City of Ottumwa is required to hold first or second position on all loans during the term of the loan.
- City employees are not eligible to apply for funds under this program.
- Applicants Total Gross Household Income can not exceed the following income limits as determined by the Department of Housing and Urban Development:
Income limits effective March 2008 *
* Income limits subject to change
| Number in Household | Maximum Annual Household Income |
|---|---|
| 1 | $30,050.00 |
| 2 | $34,300.00 |
| 3 | $38,600.00 |
| 4 | $42,900.00 |
| 5 | $46,350.00 |
| 6 | $49,750.00 |
| 7 | $53,200.00 |
| 8+ | $56,650.00 |
Application Information
If you have any questions or would like to make an appointment, call our office between the hours of 8:00 a.m. to 4:30 p.m. Monday through Friday.
Applications are received by appointment only. Tuesday thru Friday between the hours of 8:00 am to 4:30 pm
Contact: Ted Ellis, Housing Technician 683-0616
City of Ottumwa
105 East Third Street
City Hall Room 301 3rd Floor
Ottumwa, Iowa 52501-2905
At the time of the application, you will need to bring with you the following documents: If the following information is not provided, your application will be placed on hold until the information is received.
- Applicant must have owned the property for a period of one (1) year.
- Copy of Deed, (or Deed of Trust showing ownership and Legal Description of the property)
- Copy of Recorded Land Contract, along with the name, mailing address and telephone number of the Land Contract Holder.
- Name, address and telephone number of Land Contract Holder if the property is being purchased on a Recorded Land Contract.
- Copy of Homeowners Insurance Policies - required
- City, School and County Tax Receipts showing there are no delinquent taxes due and the taxes are current.
- Social Security cards for each member of the household.
- Employment Information providing the employer's name, address, salary, length of employment, etc. for each adult member of the household.
- Social Security Number and Benefit Verification letter from SS Office for each member receiving benefits.
- Pension/Retirement Income Verification letter for each member of the household receiving benefits.
- Bank and Credit Information account numbers, account names and addresses
- List and amounts of debt owed to determine income to debt ratio.
- Other Required information:
- Death Certificate
- Disability Letter from Social Security
- Divorce Settlement
- Probated Will
- Utility Bill for Water, Electric, Gas - all utilities must be current and in the homeowner's name.
Equal Housing Opportunity
We do business in accordance with the Federal Fair Housing Law. (Title VII of the Civil Rights Act of 1968 as Amended by the Housing and Community Development Act of 1974). IT IS ILLEGAL TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR RELIGION, SEX OR NATIONAL ORIGIN:
- In the sale or rental of housing or residential lots.
- In the advertising the sale or rental of housing.
- In the financing of housing.
- In the provision of real estate brokerage services.
- Blockbusting is also illegal.
An aggrieved person may file a complaint of a housing discrimination act with:
U.S. Department of Housing & Urban Development
Assistant Secretary for Fair Housing and Equal Opportunity