CDBG Housing Rehabilitation Program

Housing Rehabilitation
The following description is provided for informational purposes. If you have any further questions about this program, please call the Housing Rehabilitation office at (336) 222-5070.

GENERAL INFORMATION
CDBG & HOME Loan Program
The CDBG and HOME Loan Programs use federal funds to assist low and moderate income homeowners to rehabilitate their home within the City of Burlington and Alamance County. Assistance for rehabilitation is available as a deferred loan. To be considered for assistance, an applicant must meet the following criteria:

  1. DEFERRED LOAN
    1. Owner-occupants only,
    2. all loans shall be secured by a Deed of Trust,
    3. applicant(s) must be current on taxes,
    4. applicant(s) must have current homeowner's insurance policy,
    5. applicant(s) must not have any liens or judgement against them, 
    6. applicant(s) total household income does not exceed 80% of the area median income, the "very low income" limits published in the Department of Housing and Urban Development (HUD) limits for Burlington, North Carolina area,
    7. payment is deferred for up to 10 years with no accrued interest, and may be deferred for a second 10 year term with 3% interest accruing,
    8. during the deferral period, if the property is sold, the loan becomes due and payable in the total amount outstanding. (Refer to item #3 for possible loan assumption), and
    9. the maximum amount of a deferred loan shall be 95% of the appraised value of the after rehabilitation subject property minus existing debt.
  2. LOAN ASSUMPTION
    Regardless of the future disposition of the property, the property shall always be occupied by the owner-occupant as long as an obligation exists to the City of Burlington. A family member or buyer cannot assume a CDBG rehabilitation loan and rent out the property. Whenever the property ceases to be owner-occupied, the obligation to the City of Burlington shall be due and payable immediately. A family member or buyer desiring to assume a CDBG loan will be considered under the following conditions and requirements:
    1. All loan assumptions are subject to approval by the City of Burlington,
    2. Deferred Loan Assumption will be considered as follows:
      1. If a family member desires to assume an existing deferred loan, that family member must meet the requirements, terms and conditions of the deferred loan and occupy or plan to occupy the property,
      2. a family member that does not qualify to assume a deferred loan due to the requirements, terms and conditions may be considered to assume the remaining total obligation at 3% interest in making monthly payments for a term up to 20 years, providing the total household income is within the "low income" limits specified in the HUD Section 8 income limits for Burlington, North Carolina, and will occupy the property,
      3. a buyer may assume the remaining total obligation at 3% interest in making monthly payments for a term up to 20 years providing the total household income is within the "low income" limits specified in the HUD Section 8 income limits for Burlington, North Carolina, and will occupy the property, and
      4. a family member or buyer that does not qualify for a loan assumption must pay off the remaining outstanding balance prior to title transfer.
    3. Regular Loan Assumption will be considered as follows:
      1. If a family member desires to assume the regular pay loan obligation and the family member's income is inadequate to support a pay loan, consideration will be given to allow the family member to assume the obligation as a deferred loan providing the family member's total household income qualifies for a deferred loan and the household will occupy the property,
      2. a family member or buyer may assume the total obligation on a monthly payment basis if the family member's or buyer's total household income is within the "low income" limits specified in the HUD Section 8 income limits for Burlington, North Carolina, and will occupy the property,
      3. a family member or buyer that does not qualify for a loan assumption must pay off the remaining outstanding balance prior to title transfer.
  3. GENERAL
    1. The HUD  income limits referred to herein are those limits prepared by HUD according to the United States Housing Act of 1937. These limits are revised annually. Our program will use the latest limits available at loan approval.
    2. Special consideration will be given to handicapped or disabled applicants as follows:
      1. A handicapped or disabled applicant will be considered for a deferred loan providing their income is within the "low income" limits specified in HUD Section 8 income limits for Burlington, North Carolina, and
      2. if the status of a handicapped or disabled applicant changes later and the applicant is determined to be a competent wage earner, the deferred loan will be changed to a regular pay loan.
INCOME LIMITS
Effective May 2015
  • 1 person household: $29,900   
  • 2 person household: $34,150
  • 3 person household: $38,400   
  • 4 person household: $42,650
  • 5 person household: $46,100
  • 6 person household: $49,500
  • 7 person household: $52,900
  • 8 person household: $56,300

APPLICATION PROCESS:
Step 1:
  • Download application at the below link or request a application by calling 336-222-5070

Download Housing Rehabilitation Program Application 

Step 2:
  • Upon receipt of the completed application your name will be placed on the Housing Rehabilitation Waiting List. Waiting list time differs depending on the current number of homeowners on the list.