Historic Home Preservation Loans in Toledo, Cleveland Dirt Cheap

The Lucas County Land Bank, created to keep neighborhoods from sinking under the weight of delinquent and abandoned properties, has grown and flourished. Current programs include grants for new roofs for low-income homeowners (only through June 2015), chance to get side lots, land for gardens, and their newest cool thing.

The Heritage Home Program gives low-cost loans to homeowners with historic homes to restore their homes along historically appropriate lines. That means no aluminum siding and other stuff that messes up historic authenticity, but free consultation with experts, recommendations to qualified contractors, and loans as low as 3.5%.

In Cleveland, the Heritage Home Program offers similar help to owners of historic residences in the metropolitan Cleveland area. They offer help with consultants, low-cost loans, and even purchasing. If you love historic homes in these two towns, they awe worth a look.  If you live elsewhere, contact your local preservation society to find out if there is a similar organization near you.

Free Money for Low-Income Detroiters to Fix Their Houses. Must Apply by October 31st

Just a very quick note about grants by Fifth Third Bank to low-income Detroit homeowners to repair their homes.  Not a loan--a grant, from Fifth Third's Neighborhood Impact Program.  This is on a first-come, first served basis, BUT the deadline for application is October 31, 20013.  Please see this site for further information on the grant program to Detroit low-income homeowners.

Per Reader's Suggestion--State and Local Sources of Funding to Rehab Historic Homes

We get comments, and the ones that are not pure spam (or links to Asian porn) are mighty helpful.  A recent one from Brendan Amorose, who left a note on our posting re: money to fix up your home.  He noted that besides some of the government programs listed, that private historical and preservation organizations can be another source of financial help.  So I wondered where you would find such a list, and struck paydirt here.  It has links to state preservation associations, but also local neighborhood groups, such as the Old West End Association in Toledo, as well as downtown and neighborhood revitalization organizations, and tribal preservation groups.  In these tough economic times, the groups themselves may be struggling for money, but if you fall into their service area they may be able to point out the best strategies for finding funds.  Also, never assume that any link or online directory is exhaustive. Check with your local city officials or state preservation office to double check.

A Possibility of Winning a Roof. By Local Vote

There are programs to get your house fixed up, one way or another.  An odd one that showed up on my radar is No Roof Left Behind, where some person luckless enough to be poor with a broken-down roof can be voted a new, free roof if their community votes them the most deserving. 

Here's how it works: if a building contractor in your area volunteers to build a roof, there is a competition to have a roof built.  If there is a competition in your area, you can nominate someone down on their luck with a bad roof.  The local sponsors set a deadline, sift through the nominations, and pick four finalists, who are then put to a popular vote of the community.  The person voted most deserving gets a new roof built for them for free. 

Volunteer Home Repairs for the Needy and Elderly

Most people know about Habitat for Humanity, a group that creates homes for the poor out of voluntary community labor, in which the new homeowners are required to contribute "sweat equity." In Toledo and the Maumee Valley area, HFH also does home repairs.  But there are also organizations that help pitch in and help poor and elderly homeowners repair their homes.

One is Christmas in Action, which provides home repairs for people on a fixed income who are over 60 or physicallly disabled.  You need to live in an area that has a local affiliate nearby and contact that affiliate group.

A much larger network of volunteer home fixer-uppers is Rebuilding Together, with over 200 local affiliates around the United States.  They help low-income homeowners fix their homes without the qualification of being elderly or disabled.  They also do community rebuilding work in partnership with other local organizations.  If you do not live near a local Rebuilding group, get in touch with the national organization at 1-800-473-4229.

Remember that if you are elderly, the federal government has a page on home repair and modification, and how to find it.  Your best bet is to find a local office on aging in your community, or call 211 if your area has it, and ask for a home repair agency.  For people in Toledo and northwest Ohio, an extra list is here.

Paying for Weatherization and Heating--Northwest Ohio and the Whole Country

Besides help with paying for your winter heat, you may be able to get help keeping the warm air on--and staying27557 inside--your house.  You can find state programs the help you pay for the heat from the LIHEAP program and its state offices.  In Ohio, the Development Services Agency administers the HEAP applications.

But low-income people can get help with free energy inspections, insulation, and furnace and water heater repair, too.  Here are the state offices that administer those programs. Every state has slightly different qualifications for their programs, so check yours to see if you can get help.  Click on your state, then, in the box for "service," choose "weatherization."  It will give you an address, phone number, and a clickable link with more information.  In Ohio, it's also the Department of Development.   For those living anywhere in Ohio, call 1-800-362-7557 for weatherization services.

While the state gives out the money, the actual work is usually done by local nonprofits.  For Lucas County, Ohio, that's the NeighborWorks Toledo.  For Wood, Erie, Sandusky, Ottawa, Huron and Seneca Counties, it's WSOS. 

You may also wan to check you utility company.  Many utility companies provide weatherization at low or no cost to low-income customers.  In the areas served by Columbia Gas in Ohio, customers who are below 150% of the poverty level, and eligible for the PIPP payment program are eligible for the Warm Choice program.  It includes an energy inspection, insulation, safety check for gas appliances, and, possibly, the repair or replacement of faulty furnaces or water heaters—all for free.  Contact your utility provider to see if they provide services like this. 

Finding Tax Credits for Historic Buildings

Fixing up and preserving buildings of historical significance, either because of events that happened in them, or because of their architecture or the historic significance of the area in which they exist, can be aided by federal and/or state tax credits.  But how do you know if your building qualifies?  The first place to go is your local or state preservation agency.  They can tell you how to research your building's origin and establish its status as a historically significant building, or if it's part of a historic district.

 The federal government allows tax credits ranging  from 10% to 20% of the cost of the rehabilitation.  However, this is only for commercial buildings, not owner-occupied homes.  The National Trust for Historic Preservation put together a guide to determine if your property would qualify, and takes you step by step through the process.  The Department of the Interior has guidelines which show what sorts of rehabilitation work is eligible for the federal credit.

Some 30 states also allow for tax credits for the rehabbing of historic buildings.  Some of them allow their use on private homes, and some have caps that limit their usage.  The National Trust for Historic Preservation has the latest rundowns on what each state allows, and web links where you can get more information.

Housing Grants and Incentives in Detroit

See this newest one, only through October 31, 2013.

My hometown, Detroit, has had a hard-knock time in the last 50 or so years, with falling population, mismanagement, and industrial exodus.  But public and private resources are trying to change that.  On one hand, efforts are being made to get people to stay put: Citizen's Bank just announced a program of grants totaling $1.6 million to homeowners in five Detroit neighborhoods:
east English Village, Boston Edison north end/Virginia Park, north Rosedale Park, Hubbard Farms.
The money can be used for exterior improvements.  Another, available for homeowners in targeted neighborhoods throughout the city, deals with health and safety hazards, particularly lead abatement.  It is a grant or forgivable loan of up to $15,000; $24,950 if lead abatement is involved.  It can include problems such as furnaces, roofs, plumbing, and electrical problems.  See the city's website, or call 313-224-3461.
Clearcorp also offers grants for lead abatement for Detroit homeowners: grants of up to $8000 for owner occupied houses, $4000 for rental properties, assessments of lead damages, and other services.  Call 313 924 4000 for more information.

Other first time homeowner help is from the state of Michigan.  The Michigan State Housing Development Authority targets homebuying in  the following areas of Wayne County: Detroit, Ecorse, Hamtramck, Highland Park and River Rouge.  That means there is a generous limit on the amount that you can earn and still get first homebuyers assistance.  A two person household can have income up to $77,000 a year and still be eligible for downpayment assistance.  Here's the page on the state's homeownership assistance programs.

Another place to check is the Detroit Housing Commission, which has a homeownership program, requiring a year's employment (unless elderly or disabled), income within requirements, and $1,000 of savings.  

 
Other efforts are aimed at getting people to move back.  One is Project 14 (the name derives for police code for "situation normal."), which attempts to get police to move back to the city.  It tries to kill two birds with one stone: abandonment of neighborhoods by the professional classes and police, and vacant homes. Homes are bought, police can choose from the homes, (if they meet income requirements), a contractor is hired and repairs and upgrades are made.  It's along the lines of other programs created federally and in many localities to attract professionals to underserved areas.  Call 313-974 6869 for more information. 

Some of the companies that have made a commitment to staying in downtown Detroit (Blue Cross/Blue Shield of Michigan, Compuware, DTE, Quicken Loans and Strategic Staffing Solutions) have incentives for their employees to rent or own homes in Detroit as well.  If you buy or rent within the downtown or near-downtown area, you can get a $20,000 forgivable loan towards a home purchase, a $2500 reimbursement for the cost of rental for the first year, and $1000 for the second, and matching funds of up to $5000 for home renovations of $10,000 or more.

See Live Midtown for incentives in the mid-town Detroit area.

Find Loans--and MAYBE Grants--To Fix Up Your Home

When thinking about where to find low-cost money for home fix-ups, think logically. If you have been reading this blog for any period or time, you know that nobody gives out free money for nothing (in fact, hardly anybody gives out free money, period). There is always something that a nonprofit group or government wants to happen as a result of giving away the money, or loaning it at below-market costs. So you have to think, what group wants my home fixed up? It's somebody who wants to have better housing stock within a particular area, or for a particular population group, or for a particular purpose, like making homes more energy efficient.  Here are the usual suspects:

1) City and state housing agencies. In cities large enough to have a housing or development department, there is usually a keen interest in keeping the housing stock safe and up to date. Often, the city is eligible for federal grants, which they use to create a pot of money to lend (at a lower cost than the banks) or create no-interest loans or even outright grants (usually reserved for the very poorest people). Contact them and ask if they have such a program. It will almost certainly be restricted by income, but the income levels might be higher than you think. It may be limited to particular neighborhoods, too. State housing authorities are another possible source of funding. While they always have home ownership programs, sometimes they have home loan programs, too.  This is a list of some of the local housing authorities, and all of the regional and state housing authorities. Remember that a local "housing authority" may merely be in charge of public housing, not private housing development (as is the case in Toledo, Ohio).  Call and ask if that's the case.  If so, try your local city government for possible programs.

3) State and local departments for the aged. These agencies may arrange loans or grants for repairs to senior’s homes. Here’s a site that will give you state and some local information.  Here's a site for a home repair program offered by the city of Detroit.

4) Community development corporations. These are nonprofit organizations created to improve some particular, defined area—a city, county, or part of one of those. If you live within a CDC area, you may be eligible for a loan or grant IF they have the money. Remember those federal grants I spoke of? They will give out the money till it’s gone. There is no nationwide directory of CDCs, but there is a directory by state.  The link for Ohio is dead, but I found a live one here.

5) IDA-giving organizations. These organizations create programs where they match your savings to create a pot of money that you can use for some defined purpose. Again, the availability depends on their resources, and if the source of their funds matches your need. They may only use funds for the purposes that they told the government they would use when they applied. And you will not immediately get the money—you must save over time. But it’s worth looking into.
6) Historic Home Funding--This website by the National Trust for Historic Preservation gives you some ideas of where to go if you primary residence is of historic value and needs preservation/rehabilitation work.  Also, see this list links for state and local sources.
7) The Department of Agriculture. They're not just about cows and crops, but rural development, too.  If you live in a rural area, and are very low income, you may be eligible for a loan or grant to rehabilitate your property.
8) Disabled veterans may be eligible for money to help purchase an accessible home or retrofit their current home.
9) A Community Action Agency. I’ve discussed these before. They are agencies set up to help the poor, and once again, you have to live within their service area. Check here to see if you live in a CAA. They may also provide free weatherization services if you have a low income.
10) HUD. While they don’t loan money, they do insure loans for home improvements. This could be worth considering if you have a hard time getting an affordable loan any other way.
10) If the improvements are meant to create energy savings, check this site to find energy incentives in your state.
11) Here's a couple of organizations that help low-income people fix their homes.

Can Recovery Money Help Me?

Where is the economic recovery money going? Much of it is going to education and public works, but some of it may be headed towards you, if you know where to look. In Toledo, some block grants have been turned into programs to buy and develop foreclosed property and fix the exteriors of homes. Also, new money has come to improve the energy efficiency of homes for low and moderate income people.

How can you find that money where you live? Get in touch with your city’s housing or development department and see if they have gotten new housing funds, what programs they may have. Remember, that these funds are a one-shot deal with limited resources, so that once the money runs out, the program is over. Also, not all communities have spent their funds on the same types of programs. Many of the nation’s community action agencies (of which there are over 1000 in the U.S.), have gotten funds for heating and energy efficiency home fixups. Find the one in your area, and see if you qualify. Job retraining money has gone to workforce training centers around the United States. Locate the one near you and see if there are retraining programs you can use. These are the levels of government that actually have and distribute programs and services.

A great IDeA for more money

While there are hardly ever really free money sources, there are ways that low to middle income people can go to save up their money and fulfill a dream.

One of these ways is the Individual Development Account (IDA). It's a savings plan where the person chooses a financial goal, like starting a business, continuing their education, or buying or fixing up their house. Then, they make a plan to regularly save money, and their savings are matched by the sponsoring nonprofit agency until they reach their goal. Along the way, the savers receive counseling about budgeting and financial planning for their new goal. How much the nonprofit organization matches varies from one organization to the next. Sometimes, they will contribute dollar for dollar, or even 2 for 1 or 3 for 1.

Most organizations that offer IDAs are nonprofits that are attempting to help low and middle income people in a particular area, so geographic boundaries, as well as income limits apply. To find an organization that offers IDAs where you live, go to the IDA directory at the Corporation For Enterprise Development. Just put in your state, and leave the other search options blank. It will pull up a list of organizations that provide IDAs. Remember, however, that since these nonprofit organizations depend on grants for their programs, there may not be money available if they have run out themselves. But check it out. It's worth a try.