Home Repair Loan Program 

Purpose

The Loan Program is to provide funds for home improvements to low-income homeowners residing within the Aleutian/Pribilof Region.

Description

Loan/Grant: If the total cost of work is under $5,000, the funds will be a grant and not repaid (a 6-month retention period is required). If the total cost of work is $5,000 or more, the funds exceeding $5,000 will be a loan that does not require monthly payments, but will be due and payable, with interest, when the property is sold or transferred.

Maximum Amount:

1. $20,000 for single family homes, including permanent foundation mobile homes.
2. $5,000 for mobile homes on rented land, or rentals.
3. Emergency Grants will be limited to $5,000.

Minimum Loan Amount:  $500

Interest Rate: 1% simple interest will be charged on each loan.

Program Eligibility

• Applicant must be an Alaskan Native or American Indian.
• Household income at or below 80% median income for the area, per HUD guidelines.
• Home location within the Aleutian/Pribilof Region.
• Must own and occupy residence.
• Except for emergency repairs the applicant must have owned the home for 3 years.
• Must be current on mortgage payments.
• Willing to sign a Promissory Note and Deed of Trust.
• Single-family residence.

Property Requirements

• Must be of moderate design and after-rehab value may not exceed the Total Development Costs as established by HUD.
• If it is determined that the eligible work would have little or no impact on the overall condition, repairs will be declined. this doesn't not apply to one-time emergency repairs.
• Lead based paint prevention requirements apply.
• Homeowners insurance that may be available must first be used.
• Homeowners insurance must be in place at closing, this does not apply on grants.
• Repairs that threaten the health or safety must be performed before energy efficiency or general repairs.
• Aleutian Housing Authority must perform all work paid for, or other approved contractor. Work done by the owner will not be funded by loan/grant.

Eligible Repairs

Repairs funded by this program must fit the following categories:

• Essential Improvements are those that threaten the health or safety. May include smoke and carbon monoxide detectors; replacement of faulty heating systems, electrical, plumbing or mechanical systems; repair or replacement of water and septic systems or roofs; etc.
• Energy Efficient Repairs are those that increase efficiency. May include efficient heating systems, insulation upgrades, door and windows, etc.
• Accessibility Improvements designed to improve livability. May include grab bars, shower stalls, ramps, etc.
• Emergency Repairs are those that immediately jeopardize the safety and integrity of the home. May include repairs or replacement of furnace, water heater, broken windows, septic/water, electrical, etc.

Replacement of furnaces, water heaters, or other major component of the house may only be done as an emergency repair if the unit has failed and cannot be safely used.

For more information, please contact us.   For an application click on the icon

Policy subject to change and available funding.