CDBG Housing Rehabilitation Program
Residential Rehabilitation Program
The following description is provided for informational purposes. If you have any further questions about this program, or would like to request a copy of the complete set of Rehab Policies, please call the Community Development office at (336) 222-5070.
CDBG & HOME Grant Programs
The CDBG and HOME Grant Based Programs use federal funds to assist low and moderate income homeowners to rehabilitate their homes within the City of Burlington and Alamance County. Applicants will be denied if the rehabilitation grant amount is not enough to bring the property up to code. Cosmetic repairs are NOT eligible. To be considered for assistance an applicant must meet the following criteria:
- Owner-occupants only (principal place of residence and evidence of property deed in applicant's name)
- Applicant cannot have any current loans with the City
- Residence must have been purchased at least 2 years ago
- All grants shall be secured by a Deed of Trust and Promissory Note
- Applicant(s) must be current on all taxes (County & County taxes must be maintained until grant has been forgiven)
- Applicant(s) must have current homeowner's insurance policy and must be maintained until the grant has been forgiven.
- Applicant(s) must not have any liens or judgments against them (including bankruptcy--must be discharged)
- Applicant(s) total household income cannot exceed 80% of the area median income (See below table)
- Forgiveness occurs each anniversary date of the Deed of Trust being recorded and forgives at $5000.00/per year until the balance is at zero.
- No more than one current mortgage allowed on the property. Reverse mortgages or Land Contracts are not allowed.
- Mobile homes must be on a permanent foundation and the applicant(s) must own the land the home is located on.
- During the forgiveness period, if the property is sold, or not being used as the primary residence of the Deed of Trust holder, the loan becomes due and payable.
- The after-rehab value of the home cannot exceed 95% of HUD's Maximum Housing Value for Alamance County
Eligible Types of Repairs
- Non‐functioning bathrooms/kitchens
- Roofs (repair/replacement)
- Floors/ceilings/walls/flooring covering
- Plumbing, electrical and HVAC systems or system components
- Water/sewer service lines
- Structural defects
- Accessibility impediments
- Interior and exterior painting
- Garages/carports (repair to existing structure only)
- Smoke Detectors & Carbon Monoxide Detectors (for homes equipped with natural gas)
- Weatherization and energy efficient upgrades
- Lead‐based paint mitigation and abatement
- Repairs to fences/block walls if deteriorated
- Activities related to preservation of historic structures
- Code violations cited and documented by the City
- Bath/Kitchen Remodel (accessibility issues, rotted wood)
- Chimney repair/Dry rot repairs
- Deck (only if main entry/exit)
- Other work, not listed, as approved by the Planning and Community Development Department on a case-by case basis
How to Apply
- You can apply at our online application portal Neighborly at https://portal.neighborlysoftware.com/burlington/Participan or you can call 336-222-5070 to request a paper application.
- Upon receipt of the completed (submitted) application, it will be reviewed for qualifications, documentation and income level. If anything is missing or more information is needed you will be contacted either by letter or via email.
- If qualified you will be put on a "waiting list" and contacted when the program will start the assessment of homes. This process could take up to 90-days or longer depending on how many applicants are eligible.
Property must always be owner-occupied by a low to moderate income person until the forgiveness period has ended. When the property ceases to be owner-occupied the grant becomes due and payable immediately. Property can not be used as a rental property. A family member who's name is on the deed may, at the discretion of the City, can assume the grant under the following conditions and requirements:
- All loan assumptions are subject to approval by the City of Burlington
- Loan Assumption will be considered as follows:
- If a family member desires to assume an existing grant, that family member must meet the requirements, terms and conditions of the grant and occupy or plan to occupy the property
- A buyer may assume the remaining total obligation provided the total household income is within the limits specified by HUD, and the buyer will occupy the property
- A family member or buyer that does not qualify for the grant assumption must pay off the remaining outstanding balance prior to title transfer.
- 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.
- In structures built before 1978, the property owner must agree to comply with the lead-based paint regulations. The City will pay up to $10,000 for lead-based paint inspections, risk assessments, lead-based paint hazard reduction measures, and lead-based paint clearance testing. These costs, up to the $10,000 limit, will not be included in the grant to the property owner.
- Special consideration will be given to handicapped or disabled applicants as follows:
- 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
- if the status of a handicapped or disabled applicant changes later and the applicant is determined to be a competent wage earner, the grant will be changed to a pay loan
**Total grant amounts include the Rehab Hard Costs, plus Legal Fees (Title Opinion, Note and Deed Preparation, and Recording Fee) and Credit Report Fees.**
Income Limits (80% of Median Income for Alamance County) Effective 06-01-21
- 1 person household: $37,750 (CDBG/HOME)
- 2 person household: $43,150 (CDBG/HOME)
- 3 person household: $48,550 (CDBG/HOME)
- 4 person household: $53,900 (CDBG/HOME)
- 5 person household: $58,250 (CDBG.HOME)
HUD Maximum Housing Value (95% area median home value: $179,000.00
Alamance County Median Income: $68,100.00