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Home Rehabilitation Program

Home Rehabilitation Program

Rental Rehabilitation Program

The Rental Rehabilitation Program provides the City with the opportunity to meet an identified need to address substandard rental units in the City's neighborhoods.  The Program is administered by the City of Altoona's Housing Staff.  The funding for this Program will come from the HOME Investment Partnership Program.  The Program will provide up to 50 percent of rehabilitation costs up to a maximum of $14,950 per unit depending on bedroom size:

  1. Efficiency   - $12,000
  2. 1 Bedroom  - $13,000
  3. 2 Bedroom  - $14,000
  4. 3 Bedroom  - $14,950

To be eligible for this program, the property or project must (1) contain no more than four (4) units, (2) be located within the City limits, (3) be in substandard condition, (4) structure must be vacant, (5) have a minimum rehabilitation of $2,000 per unit.

Upon completion of rehabilitation, for a period of five years, the units contained in each property or project must (1) be rented to tenants that meet low-income guidelines as established and periodically adjusted by the Department of Housing and Urban Development (HUD), (2) charge rents that conform to the lesser of Fair Market Rents as established and periodically adjusted by HUD.

Applications will be made available upon request. A completed application consists of the following:  (1) Executed and notarized application; (2) All required documentation; (3) $450.00 per unit non-refundable application deposit check, made payable to the City of Altoona, required prior to property inspection. Applications will be processed on a first-come, first-served basis and will be reviewed for owner/developer capacity to bring the project to fruition.

All properties must comply with the City’s Property Maintenance Code and Lead-Based Paint Regulations [24 CFR Part 35]. The Owner and Rehabilitation Specialist inspect the property for deficiencies, and together determine the work to be done. A Lead-Based Paint Risk Assessment is scheduled and conducted or Lead-Based Paint may be “Presumed” and incorporated into the scope of work.  The Owner or a representative of the owner is required to have a RRP Certification (Lead Renovators Certification) for Lead-Based Paint requirements.

All work shall be bid and completed as an Owner/Contractor and the Owner’s bid must fall within 10 percent of the Rehab Specialist’s cost estimate.

Once the proposed bid is accepted, a loan closing is scheduled and the City's portion of the rehabilitation is calculated using the Owner/Contractor's bid.

At loan closing, the owner is required to sign the Borrower's Agreement (outlining the conditions of the Grant), construction contracts, and loan documents.  The owner shall also provide evidence of fire insurance listing the City of Altoona as mortgagee.  The property owner is responsible for closing costs.

Both the owner's and City's funds are then placed in an escrow account established for this program. The City, as stipulated in the contract, then makes payments after sign-off by both the property owner and the Rehabilitation Specialist.  Final inspection is done by City code officials, the Rehabilitation Specialist, and the property owner.

The deferred grant will be forgiven five years after the project completion date as determined by HUD if the property is maintained to City code requirements, and the owner abides by the provisions of the Borrower's Agreement over the 5-year mortgage period.

If the property has been maintained so as to reflect the condition, substantially the same following rehab, and the City has received no discrimination complaints, the City will release its mortgage as a condition of the Borrower's Agreement at the end of the mortgage period.  Owner shall be responsible for legal costs associated with the mortgage satisfaction.

If you require any additional information, or you would like to make an appointment, please contact James Trexler, Housing Program Manager at (814) 949-2473.