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Community Development

HUD Loans Help Residents

Funds are now available for Residential Rehabilitation Loans allocated by the U.S. Department of Housing and Urban Development to the City of Dearborn Heights Community and Economic Development Department.

The Residential Rehabilitation Program is designed to help low and moderate income homeowners to make necessary repairs to bring their homes up to minimum city code. Payments for the five percent interest loans are calculated to be affordable to the borrower, who may have as long as 20 years to repay. Some deferred loans are available for extremely low income borrowers.

Loans may be used for repairs like replacing a roof or furnace, plumbing and heating repairs, and the replacement of siding, sidewalks, driveways and windows. An inspection of the home by the Dearborn Heights Building Department is required as it is the purpose of the program to bring the entire home up to minimum city code. Additions, garages and general remodeling are not allowable under the program. Applicants must have lived in their homes for at least two years to qualify.

Neighborhood Pride

The City of Dearborn Heights recognizes the importance of preserving the city's existing homes. Many older houses, while basically sound, begin to deteriorate because the owner is not financially able to provide adequate maintenance. The Residential Rehabilitation Program's goal is to provide financial and technical assistance to low to moderate income homeowners. It is designed to provide affordable financing to the borrower and the program income is recycled back into the program for future loans.

The Residential Rehabilitation Program enables homeowners to enhance property values in their neighborhoods. Beyond providing improved housing, the program benefits every home and business owner in the city by creating attractive neighborhoods, stabilizing and ultimately, increasing property values, creating local jobs, and providing a link to creating neighborhood and community pride.

Residential Rehabilitation Guidelines

Eligibility

Dearborn Heights residents who live in and own their own homes are eligible.
Cash assets cannot exceed $15,000.
Delinquent taxes and water bills will render applicants ineligible.
Income criteria is established by HUD and can be obtained form the Community Development Department

Income Guidelines for Rental Rehabilitation & Section 8 Program

Types of Home Improvement

Any home repairs qualifies, as long as it will bring the house up to minimum city code and/or aesthetically enhance the value of the house. Examples include, but are not limited to the following:

electrical plumbing
heating
roof replacement
site work
masonry
siding

Additions and general remodeling are not allowed

Loan Limit

The maximum loan is $25,000 for a low interest loan and $25,000 for a deferred loan, unless the Loan Review Board determines otherwise. The interest rate is five (5%) percent. The loan repayment period shall not exceed twenty (20) years. No interest accrues on a deferred loan so long as the homeowner resides at the address of the rehabilitated property. The full amount of the deferred loan becomes due when the loan recipient or heirs of the loan recipient sell or rent the rehabilitated property.

Emergency Home Repair

An emergency repair will be defined as one of a health and/or safety nature. Repairs cannot exceed $5,000. Owner occupants must meet income criteria and have cash assets not in excess of $15,000. Program guidelines are available by contacting Community Development (comdev@dhol.org ) (313) 277-7838