State Programs

Program Name & Sponsor

Type of Assistance

Eligibility and Conditions

Repairs and Rehabilitation Covered

Owner-Occupied Rehabilitation and Rebuilding Program,

DOH

Grants, in the form of 5-year deferred forgivable promissory notes, ranging from $10,000 to $150,000

Homeowners whose primary residences were impacted by Superstorm Sandy

Priority is given to low and moderate income homeowners

If the homeowner sells, transfers, or vacates the property during the 5-year term of the note, the grant must be repaid based on the note's repayment terms

(Currently not taking new applications)

Housing recovery needs unmet by insurance, FEMA, or other sources, including:

● Structural repair or replacement

● Energy improvements

● Lead-based paint abatement, asbestos abatement, handicap accessibility

● Mitigation assistance to elevate homes and/or reduce risk of future disasters

● Appliances

Historic Homes Rehabilitation Tax Credit,

DECD

(This row describes rules that are effective until June 30, 2015)

Business tax credit voucher for 30% of rehabilitation expenses, up to $30,000 per dwelling unit

Homes listed on the national or state register of historic places or located in a district listed on either register and that have up to four dwelling units

One unit must be the owner's principal residence for at least 5 years after the rehabilitation

Owner must live one of the following areas:

● A census tract in which 70% or more of the families have a median income of 80% or less of the statewide median family income

● A state-designated and federally-approved area of chronic economic distress

● An urban and regional center as identified by the Connecticut Conservation and Development Policies Plan

Any costs associated with physical rehabilitation, except:

● The owner's personal labor

● Site improvements, unless to provide access to people with disabilities

● An addition, except as may be required to comply with state fire or building codes

● Costs associated with the rehabilitation of an outbuilding, unless such building contributes to the property's historical significance

● Nonconstruction costs, such as architectural fees, legal fees, and financing fees

Program Name & Sponsor

Type of Assistance

Eligibility and Conditions

Repairs and Rehabilitation Covered

Historic Homes Rehabilitation Tax Credit,

DECD

(This row describes rules that become effective July 1, 2015)

Business tax credit voucher for 30% of rehabilitation expenses, up to $30,000 per dwelling unit

Homes listed on the national or state register of historic places or located in a district listed on either register and that have up to 4 dwelling units

1 unit must be the owner's principal residence for at least 5 years after the rehabilitation

70% of credits reserved for rehabilitation projects in DECD-designated “regional centers”

Any costs associated with physical rehabilitation, except:

● The owner's personal labor

● Site improvements, unless to provide access to people with disabilities

● An addition, except as may be required to comply with state fire or building codes

● Costs associated with the rehabilitation of an outbuilding, unless such building contributes to the property's historical significance

● Nonconstruction costs, such as architectural fees, legal fees, and financing fees

Historic Rehabilitation Tax Credit,

DECD

Business tax credit voucher for 25% to 30% of rehabilitation expenses

Building with at least 5 dwelling units listed on the national or state register of historic places or located in a district listed on either register (mixed-use and nonresidential buildings are also eligible)

Any costs associated with physical rehabilitation, except:

● The owner's personal labor

● An addition, except as may be required to comply with state fire or building codes

● Nonconstruction costs, such as architectural fees, legal fees, and financing fees

Federal Programs

Program Name & Sponsor

Type of Assistance

Eligibility and Conditions

Repairs and Rehabilitation Covered

Single Family Housing Repair Loans & Grants,

USDA

Low-interest loans of up to $20,000 and grants of up to $7,500

For loans, homeowners must:

● Currently occupy the home to be repaired

● Be unable to obtain affordable credit elsewhere

● Have family income below 50% of the area median income

For grants, homeowners must:

● Meet the above criteria and be 62 years of age or older and not be able to repay a repair loan

● Repay the grant if property is sold in less than 3 years

Loans: repair, improve, or modernize homes or remove health and safety hazards

Grants: remove health and safety hazards

Single Family Housing Direct Home Loans

(Section 502 Direct Loan Program), USDA

Payment assistance loans

(i.e., a subsidy that reduces mortgage payments for a short period)

Applicants must:

● Have an adjusted income that is at or below the applicable low-income limit for the area

● Demonstrate willingness and ability to repay the debt

● Be without decent, safe, and sanitary housing

● Be unable to obtain a loan from another source under reasonable terms

Borrowers must repay all or a portion of the payment subsidy if title transfers or the borrower moves out

Purchase, build, repair, renovate, or relocate a home

Purchase and prepare sites, including providing water and sewage facilities

Program Name & Sponsor

Type of Assistance

Eligibility and Conditions

Repairs and Rehabilitation Covered

Single Family Housing Guaranteed Loan Program, USDA

Loans

Applicants must:

● Meet income-eligibility requirements (vary by area)

● Agree to occupy the property as a primary residence

● Demonstrate willingness to meet credit obligation in a timely manner

● Repairs and rehabilitation of an existing dwelling

● Special design features or permanently installed equipment to accommodate a household member with a disability

● Connection fees for utilities such as water, sewer, and electricity

● Essential household equipment (e.g., carpeting, certain appliances, heating and cooling equipment)

● Energy efficiency measures

● Site preparation (e.g., grading, landscaping)

203(k) Standard Rehabilitation Mortgage Insurance,

HUD

Loans

Current homeowners or purchasers of a home requiring rehabilitation

Repairs must cost at least $5,000

● Structural alterations and reconstruction

● Modernization and improvements to the home's function

● Elimination of health and safety hazards

● Changes that improve appearance

● Reconditioning or replacing plumbing

● Adding or replacing floors, roofing, gutters, and downspouts

● Enhancing accessibility for a disabled person

● Making energy conservation improvements

Program Name & Sponsor

Type of Assistance

Eligibility and Conditions

Repairs and Rehabilitation Covered

203(k) Streamlined Rehabilitation Mortgage Insurance,

HUD

Loans of up to $35,000

Current homeowners or purchasers of a home requiring rehabilitation

Minor to moderate repairs or remodeling, including:

Property Improvement Loan Insurance (Title I),

HUD

Loans of up to $25,000 for a single family home, up to $60,000 for a multi-family home

The owner of the property to be improved, the person leasing the property, or someone purchasing the property under a land installment contract

Funds may be used to finance property improvements that protect or improve the basic livability or utility of the property, including purchasing fire safety equipment

Section 184 Indian Home Loan Guarantee Program,

HUD

Loans

Native American and Alaskan Natives

Homes with 1-4 dwelling units

Must be borrower's primary residence

Funds can be applied toward new construction, rehabilitation, purchase of an existing home, or refinancing

Funds can be applied to properties both on and off native lands

Program Name & Sponsor

Type of Assistance

Eligibility and Conditions

Repairs and Rehabilitation Covered

Specially Adapted Housing (SAH) Grant,

VA

Grants of up to $70,465 (may be awarded three times to the same veteran)

Veterans with certain service-connected disabilities

● Construct a specially adapted home on land to be acquired

● Build a home on land already owned if it is suitable for specially adapted housing

● Remodel an existing home if it can be made suitable for specially adapted housing

● Apply the grant against the unpaid principal mortgage balance of an adapted home already acquired without the assistance of a VA grant

Special Housing Adaptation (SHA) Grant,

VA

Grants of up to $14,093 (may be awarded three times to the same veteran)

Veterans with certain service-connected disabilities

● Adapt an existing home the veteran or a family member already owns and in which the veteran lives

● Adapt a home the veteran or family member intends to purchase in which the veteran will live

● Help a veteran purchase a home already adapted in which the veteran will live