News
November 20, 2008
City Of Raleigh To Offer Housing Reconstruction Program
The Raleigh City Council voted unanimously at its Nov. 18 meeting to create a program that offers loans of up to $135,000 to qualified residents to reconstruct their homes. The loans will carry a fixed-interest rate of either 0 percent or 3 percent, depending on household income adjusted for family size.
The City’s Community Development Department recommended the council approve the Housing Reconstruction Program to help fill a void in services. Six homeowners who had sought help through the department’s Pilot Rehabilitation Program were denied assistance because their dwellings were so severely deteriorated they were not suitable for rehabilitation. These homeowners could qualify to get a loan through the Housing Reconstruction Program, which will be funded with federal Community Development Block Grants. Under program guidelines, reconstruction is defined as demolishing and rebuilding a housing unit that is deemed not suitable for rehabilitation “on the same lot in substantially the same manner.”
To be eligible for a loan from the Housing Reconstruction Program, applicants must have been denied rehabilitation assistance by a Community Development Department rehabilitation program on the grounds the dwelling was not suitable for rehabilitation. Community Development staff will identify which applicants may be eligible for the program based on certain other criteria. Applicants must meet income guidelines, be the owner-occupant of the dwelling that is to be reconstructed, and reside in one of the City’s low-income census tract areas, among other things. Due to limited funding, the Housing Reconstruction Program will be limited to about four cases per year.
The City of Raleigh Community Development Department will administer the Housing Reconstruction Program. For more information, contact the department at 996-4330.
Prepared by:
John Boyette
Public Affairs Specialist
Public Affairs Department
For More Information Contact:
Michele Grant
Director
Community Development Department
310 West Martin Street, Suite 101, P.O. Box 590
Raleigh, NC 27602
919-996-4330
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