Saturday, October 6, 2007

City wants to give us flood loans, too!

The dark black storm clouds that tore through the City last month may be long gone but, for many local residents, a different type of cloud still lingers. Though the tornado may have missed Queens, the accompanying rains caused devastation of their own, flooding countless residents’ homes and leaving them scrambling to repair the damage. Insurance settlements, that often fail to cover the full cost of repairs, have left owners having to dip deep into savings or take on costly home improvement loans to make up the difference. While never easy for anyone, for some — particularly the borough’s elderly and working class homeowners — securing this kind of financing can be a real problem. Fortunately, it doesn’t have to be. The New Housing Marketplace Plan — Mayor Bloomberg’s $7.5 billion plan to create and preserve 165,000 units of affordable housing — contains a number of programs designed to help.

The Home Improvement Program (HIP) — a program run by the Department of Housing Preservation and Development (HPD) — offers low-interest loans of up to $30,000 to qualified families living in one- to four-family homes. Homeowners making up to $102,700 for a family of four qualify for a 5 percent rate, while those making below $56,700 for that same family of four qualify for a 2.5 percent rate. The loans can be paid back over the course of 10 years and can be obtained from participating local banks with no closing costs.

For qualified seniors ages 60 and up, the Senior Citizen Deferred Payment Homeowner Assistance Loan Program (SCHAP) offers 0-3 percent rehabilitation loans of up to $30,000 per unit for owner-occupied two- to four-family homes and up to $40,000 for single-family homes. Couples making up to $68,000 and individuals making up to $59,600 qualify for 30-year, deferred payment loans where the principal and interest are not due until transference of the property to a new owner. The loans are financed by HPD and administered through the Parodneck Foundation, a non-profit organization operating throughout the five boroughs.

Lastly, the Emergency Loan and Revolving Loan Fund Programs—programs run as partnerships between HPD and the Neighborhood Housing Services (NHS), a national non-profit housing organization—provide rehabilitation loans of up to $30,000 per unit to qualified homeowners living in one- to four-family homes. In addition, emergency loans of up to $10,000 are also available. Families of four making up to $102,700 can qualify for these predominately 5-year loans, while couples can earn up to $82,150. The loans are administered through NHS’s neighborhood offices, which are located in all five boroughs.

Owners will need to provide information about family size; total family income; proof that the building is, in fact, owner occupied; a list of the building’s current problems; a proposed workscope and a release authorizing a credit check. If approved, the borrower can receive their money in as little as a month of first submitting the application. Homeowners can then begin repairs with the help of a licensed contractor or, in certain circumstances, even on their own.

For further information on any of these programs, please visit the HPD website at or call the City’s 311 hotline and ask for details on HPD’s home loan programs.

Shaun Donovan
Commissioner, New York City Department
of Housing Preservation and Development

It's great to know that the City will make money off of our misery along with the Feds. But what is being done to prevent sewage backup again?


Anonymous said...

When a multi story structure
(4 to 12 floors)
replaces a two story home.....
the residents in the new building
don't have to worry much about sewer back ups
if they live on the higher they ?

But the city doesn't really give a crap
about the shit in a home owner's basement!

Most of these so called bail out loans
are a "load" themselves......
with so many stipulations and strings attached
that the neediest may wind up being excluded
from quickly obtaining them.

Another Bloomberg PR coup
to make it look that NYC has a heart
and cares for its less fortunate residents.

Anonymous said...

Duh......once again you municipal dumbos.....
OVER DEVELOPMENT is the real problem!

Doling out cut rate "conscience" loans
or fixing up some sewer lines here and there
amount to a band aid being applied to a wound
that needs stitches.

It's like putting a lid on a pot that's boiling over
onto the stove.....
then trying to convince us that the situation
has been taken care of!

Anonymous said...

They don't know what to do -fixing the system would take away tax dollars from supporting the developer projects and might get the public to start to link these problems with develpment.

Looks like a similar solution to the Con Ed blackout last year when Eric and Peter and Mike laid low for a few days (not to worry a lapdog press would not take them to task on that one) until they dreamed up the idea of blaming Con Ed and then ..... well what did they suggest we do besides denying Con Ed rate increases and forcing them to payout money?

Yes, boys, that is the ticket - take away funds to rebuild and expand the system - typical welfare state pols.

Anonymous said...

the city should give us our tax money back to pay for the clean-up.