The City of Salisbury, North Carolina, receives an annual allocation of funds directly from the United States Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG) Program. The City is also a part of the Cabarrus/Iredell/Rowan HOME Consortium, and as a result, receives federal dollars under the HOME Program. The overall intent of the programs is to foster the development of viable urban communities, by providing decent housing and a suitable living environment, principally for persons of low– and moderate-income.
ELIGIBLE LOAN ACTIVITIES
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Housing Rehabilitation: Provides a low interest loan to homeowners to assist in financing rehabilitation costs to their principal residence.
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Emergency Housing Rehabilitation: Provides a low interest loan to correct emergency situations that might pose an immediate health and/or safety risk.
Financing Terms: Housing Rehabilitation loans are financed at 100% of the rehabilitation cost at three (3) percent interest.
Lien Type: First or second lien—secured by a Deed of Trust and Promissory Note.
ELIGIBILITY
To be eligible for housing assistance, an applicant must:
To be eligible for assistance, the property must meet the following conditions:
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Be located in a residential area;
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Be inspected and found to be in substandard condition so that repairs are necessary to meet the City’s minimum housing code;
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Be suitable for rehabilitation (a property is not suitable for rehabilitation if it is deteriorated beyond repair and/or if the costs of rehabilitation would exceed 50% of the estimated appraised value of the property);
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The property must not have any outstanding liens, judgments, encumbrances, taxes or pending litigations.
* It should be noted that eligibility does not necessarily ensure receipt of financial assistance.
A Deferred Payment Loan is available to very low-income homeowners. This is a grant and does not have to be repaid if the structure remains the homeowner’s principal residence for the duration of the loan. If this status changes, the amount of the grant is immediately due.
APPLICATION REQUIREMENTS
1. An applicant must make an appointment with a representative in the Community Development Office and complete an application.
2. In addition, the applicant will be required to submit the following support documentation:
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IRS 1040 tax form and W-2 for previous year or income statement from retirement or pension sources and social security;
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Signed income verification form(s) or copies of pay stubs;
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Credit information (the applicant must sign a permission form for credit check);
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Copy of Deed or Deed of Trust;
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Current copy of City/County tax statement;
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Copy of homeowner’s insurance policy;
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Verification of mortgage.
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