CDBG Home Rehabilitation Loan Program (CDBG, HOME, PIP)
These programs are designed to provide emergency and other repairs of homes owned by lower-to-moderate residents. In general, the program allows improvements to a home to bring it to minimum code standards, correct barriers to mobility and health, and to address safety hazards and energy improvements. The most common repairs include roofs, electrical, plumbing, and furnaces. Other repairs are allowed under the program, but remodeling is not covered, nor is substantial reconstruction.
The Programs are funded through the U.S. department of Housing and Urban Development (HUD’s) CDBG program. Work is performed by qualified, licensed and insured contractors. The homeowners must agree to sign a Mortgage and Promissory note, which is filed against the property to secure the loan. There is no interest charged and no payments are made during the life of the deferred loan, unless the homeowner moves or there is a change in the ownership of the property.
HOME provides formula grants to States and localities that communities use - often in partnership with local nonprofit groups - to fund a wide range of activities that build, buy, and rehabilitate affordable housing or provide direct rental assistance to low-income people.