Down East HOME Consortium – HOME Program

How it works

The Down East HOME Consortium (DEHC) HOME Program is part of the City of Rocky Mount/DEHC Annual Action Plan submitted to HUD. The City of Rocky Mount serves as the lead entity and administers the program for member jurisdictions in the Twin County area.

The program is designed to help homeowners who are financially unable to make the repairs needed to keep their homes decent, safe, and affordable. It helps homes come into compliance with HUD Quality Standards and Energy Star Standards.

What the money covers

The program provides housing rehabilitation assistance for structural repairs. The page also explains that lead-based paint hazard reduction or abatement may be included when required, and that indoor plumbing costs can increase the allowable rehab amount if the home lacks indoor plumbing.

Amounts and matching

The maximum offered DEHC HOME Loan is the lowest responsible bid based on the work write-up prepared by the Department of Housing and Community Development, or $50,000 per unit, whichever is less, for structural repairs.

If an eligible housing unit has lead-based paint hazards and/or lacks indoor plumbing, the maximum allowable limit on the rehab can be increased by the amount of the lowest responsible bid for lead paint abatement and/or the cost of providing indoor plumbing. In no case may the total rehab cost cause the HOME-assisted property value to exceed 95% of the median purchase price for the area as determined by HUD.

Loan terms

All deferred loans are secured by a Promissory Note, Loan Agreement, and Deed of Trust and bear 0% annual interest. Twenty percent of the original loan principal is forgiven on each anniversary date of the loan note over a 5-year affordability period.

If the homeowner complies with the loan terms, no payments are required while they continue to own and occupy the home. The loan can be repaid at any time in installments or as a lump sum. If the homeowner dies, the loan is forgiven after proof of death is submitted. If the home is sold or transferred, or it stops being the homeowner’s principal residence without written approval, the loan goes into default and the unforgiven balance must be repaid.

How to apply

Applications are handled through the HOME Coordinator. If an applicant meets the general, dwelling unit, and applicant eligibility requirements, the coordinator contacts them to ensure the application is complete and to collect required documents. The page describes an inspection, work write-up approval, contractor bidding, contract signing, construction, and final inspection process.

Timing and deadlines

The page says rehabilitation work is scheduled to begin within seven days after contract signing. The environmental review process can take up to 90 days. The page does not publish a program opening or closing date.