These programs offer Fox Cities homeowners zero- or low- interest loans for home repairs
Appleton resident Keith Bilyeu said his home was in desperate need of some crucial repairs, but the out of pocket cost was too far out of his budget.
"We really needed a new roof," Bilyeu said. "There were critters crawling around in there and there were holes in it, and we couldn't afford it."
In 2020, Bilyeu turned to the city of Appleton for help with repairing his home, which is when he learned about the city's Homeowner Rehabilitation program that provides owners with a zero-interest loan specifically for repairing crucial areas of the home.
With those funds, Bilyeu was able to get a new roof, front patio, front steps, windows, front and back doors, two doors upstairs and his siding repaired and replaced.
"It's a wonderful program," he said. "The neighborhood benefits, the city of Appleton benefits from higher tax revenue and I benefit from a higher value of my home."
The Homeowner Rehabilitation program has existed in Appleton since 1979 as a way to ensure homes were up to code throughout the community.
"Another benefit is that by maintaining the homes, we're stabilizing or maintaining the tax base for the community," said Laura Bonnet, housing coordinator for the city of Appleton.
Appleton, Neenah and Menasha all offer homeowner residents some form of housing rehab that provides them with a loan to make repairs or renovations.
Here are more details about the repair loans and requirements for these three cities.
Appleton's program might make early retirement a possibility for some homeowners
Marty Sosnowski, another Appleton resident, was approved for the loan last spring and with it was able to get new windows, doors, driveway, a central air unit and a complete garage remodel.
Sosnowski said because of the program he was able to retire a few years earlier than planned.
"The garage and the driveway and all that, it was my goal to get that stuff done before I retired," Sosnowski said. "I didn't want to have to draw from my 401(k) fund to try to do that, and then this program came along."
Appleton's Homeowner Rehabilitation Loan Program provides middle- to low- income households with financial assistance for repairs to the exterior and interior of their homes.
The program provides funds with no interest or monthly payments. The loan amount is instead placed as a lien against the property and is repaid in full when the property is sold, transferred, leased or vacated.
Appleton requires applicants to meet these qualifications in order to receive a loan:
Be a resident of Appleton
The property must be single-family or a duplex and must be owner-occupied
Applicants must reside in the residence for at least 90 days before applying
Property must be physically and financially able to be rehabilitated
Applicants must meet the gross income limit set by the U.S. Department of Housing and Urban Development. Gross income is the total dollar value of income before any deductions.
As of April 2022, the gross income limits are: $53,600 for a family size of one; $61,250 for two; $68,900 for three and $76,550 for four.
The program also limits the amount of personal assets an applicant can have at $50,000.
Bonnet said the loan amount applicants may receive is determined by the amount of equity the property has at the time of evaluation.
The maximum loan amount an applicant will receive can be one of the following: $25,000, the actual cost of the rehabilitation work; or an amount that when added to the amount owed on the property does not exceed 100% of the current value.
Once the application is complete, applicants have the opportunity to discuss their list of home improvements with the city's housing coordinator. While applicants' personal wants for renovations may be improved, federal and city regulations require that all items that are not up to code be rehabilitated first.
Priority is given to repairs on things like roofing, foundation, electrical, plumbing and heating. Bonnet said funds cannot be used for new construction, the purchase of land or solely cosmetic items.
Applications are currently not being accepted but will become available again in the fall. Those can be found on the city's website, appleton.org, and on the first and fifth floor of City Hall at 100 N. Appleton St.
Those interested in more information can contact the community and economic development department at 920-832-6007.
Menasha homeowners can choose between two programs to fund their repairs
Menasha's Strong Neighborhood housing initiative combines a number of the city's other programs, such as the Curb Appeal and Major Renovation to tackle two goals: increase the quality of Menasha's housing stock and increase home ownership stability.
The Curb Appeal program focuses on a home's exterior renovations, including painting and landscape. It is a reimbursable grant that provides funds up to $5,000. The city will do a one-to-one match on owner-occupied properties and a one-to-two match for non-owner-occupied properties.
A reimbursement grant means applicants must first pay for the expenses related to their project and then submit an application for reimbursement from the city. Up to 10% of the reimbursement can be for planted trees and shrubs in the front yard.
Properties are eligible for the Curb Appeal program if they are a single-family or two-family residence, meet the income requirements and have a minimum project value of $2,000.
The Major Renovation program focuses on exterior and interior projects. It provides funds in the form of a forgivable loan of up to $10,000. Projects that are reducing the number of residential units to one are eligible for an additional $10,000.
The loan will act as a second mortgage and have no principle or payments until the house is sold. If applicants remain in the home for five consecutive years, the loan is forgiven.
Loans through the Major Renovation program must be used for a comprehensive project, a project that is specific to one area of the home or a single goal for renovation such as a kitchen or bathroom remodel.
Properties must be single-family or two-family residences, must be or will be owner occupied within one year from the completion of the project and have a minimum project value of $15,000.
Homes that are at or below the Menasha Affordable Assessed Value (MAAV) will be considered for a loan or grant.
The MAAV Rate in Calumet County is $255,000 and $203,000 for Winnebago County. Any homes assessed at or below these rates are considered affordable.
According to the U.S. Department of Housing and Urban Development's exchange website, the new HOME homeownership value limits for existing HOME units is 95% of the median purchase price for the area based on Federal FHA single-family mortgage program data for existing housing.
Pre-applications can be found online on the Menasha city website, menashawi.gov. For more information, contact the department of community development at 920-967-3610.
Neenah looks out for its elderly and disabled homeowners
Neenah's housing rehabilitation program covers the basic structural and mechanical repairs for low- to moderate- income families. The grant is capped at $3,600 with a five-year amortization. If the residence is occupied for five years following the repairs, the loan is forgiven.
The loan covers repairs of roof, foundation, windows, doors, plumbing, electrical and more.
Neenah offers two types of loans: a deferred mortgage loan with no monthly payments or interest and a 6% installment mortgage loan with monthly payments. Both of these loans require reviews of the applicant's income and debt.
To be eligible for grants, the head of the household must be disabled, aged 62 or over and retired. The household's only income source must be fixed, based on retirement or disability income and must not include any employment income.
Those who are interested must contact the department of community development at 920-886-6128 for more information and to be pre-qualified.
Reach Jelissa Burns at 920-226-4241 or jburns1@gannett.com. Follow her on Twitter at @burns_jelissa or on Instagram at burns_jelissa.
This article originally appeared on Appleton Post-Crescent: Fox Cities communities offer home rehabilitation loans to homeowners
