NORTH ALABAMA-Considering the recent denial of Individual Assistance for DR-4710 our federal partners have done some research and shared information on a loan/grant program that may be of assistance to your impacted citizens. This USDA program is not dependent on a federal declaration and may be an asset in the recovery from the March storms. Please share this information with those impacted, your Long-Term Recovery Committees, Houses or Worship and any other organization that can get this information into the hands of those impacted.
USDA Single Family Housing Repair Loans and Grants
What does this program do?
Also known as the Section 504 Home Repair program, it provides loans to very-low-income homeowners to repair, improve, or modernize their homes, or provides grants to elderly, very-low-income homeowners to remove health and safety hazards.
Who can apply for this program?
To qualify, you must:
· Be the homeowner and occupy the house
· Be unable to obtain affordable credit elsewhere
· Have a family income within the very-low-income limit
· For grants, be age 62 or older and not be able to repay a repair loan
What is an eligible area?
Properties must be located in an eligible rural area. You can visit the USDA Income and Property Eligibility website (available at this link: https://go.usa.gov/xzcdM) for complete details.
How can funds be used?
· Loans can be used to repair, improve, or modernize homes, or to remove health and safety hazards.
· Grants must be used to remove health and safety hazards.
How much money can I get?
· Maximum grant is $40,675.
What are the terms of the loan or grant?
· Loans are repaid over 20 years.
· Loan interest rate is fixed at 1 percent.
· Full title service is required for loans greater than $25,000.
· Grants must be repaid if the property is sold in less than three years.
· If applicants can repay part – but not all – of the costs, they may be offered a loan and grant combination.
Is there a deadline to apply?
Applications are available year-round as long as funding is available, and are processed in the order they are received.
How long does an application take?
Approval times depend on funding availability in your area. Talk to a state or area office-based USDA home loan specialist (a map is available at this link: https://www.rd.usda.gov/
How do I get started?
Contact a USDA home loan specialist (information is available at this link: https://www.rd.usda.gov/
What governs this program?
· The Housing Act of 1949 as amended; 7 CFR, Part 3550 (available at this link: https://go.usa.gov/xzcvG)
· HB-1-3550 – Direct Single Family Housing Program Field Office Handbook (available at this link: https://go.usa.gov/xzcvM – PDF)
NOTE: Because citations and other information is subject to change, always consult the program instructions listed in the section above titled “What Governs This Program?” You can also contact your local office for assistance (a list is available at this link: https://go.usa.gov/xzjP7). You will find additional forms, resources, and program information at rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.
For information or to file an application, contact the Rural Development (RD) office serving the county in which the house is located:
Huntsville: (256) 532-1677 ext. 5
Counties served: Colbert, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marshall, Morgan
Tuskegee: (334) 725-3321 ext. 4
Counties served: Bullock, Chambers, Coosa, Elmore, Lee, Macon, Montgomery, Tallapoosa, Russell
Media Release/La’Tonya Bazemore Stephens/Director of Recovery Operations/Alabama Emergency Management Agency
