Residential Development

The City of Johnstown offers three housing programs designed to promote maintenance of owner-occupied and rental housing units and to increase home ownership opportunities for low and middle income households.

All three programs seek to address elements that lead to disinvestment and blight such as structural defects, code violations, lead-based paint hazards, and weatherization improvements in order to ensure a desirable housing stock throughout the City. Availability of funds, property condition, and income requirements all determine eligibility for these activities.

The City's Community Development Block Grant (CDBG) from the U.S. Department of Housing and Urban Development (HUD) funds all three programs. Moreover, the City utilizes HUD income thresholds in order to determine income eligibility.

Household income Limit Summary for FY 2013

Household Members

1

2

3

4

5

6

7

8

Maximum Income

31,500

36,000

40,500

44,950

48,550

52,150

55,750

59,350

Owner Occupied Housing Rehabilitation Program

BEFORE

AFTER

The Owner Occupied Housing Rehabilitation Program offers a deferred loan to income eligible homeowners to address code violations, weatherization improvements and lead-based paint hazards in their home.
Eligible households may borrow up to $22,000 for a single family structure and $24,000 for a two unit structure. Furthermore, eligible homeowners may borrow an additional $7,500 to render their home handicap accessible.

The deferred loans terms include zero percent interest and no monthly payments. However, a lien is placed on the property to be repaid when the structure is sold or title is transferred. The borrower can request loan forgiveness if the property remains free of code and energy violations and occupied by the borrower as a primary residence for the term of the lien. Inspections are conducted by the City to insure the participants have complied with all program guidelines.

The following chart shows the determination of the lien term.

Loan Amount

# of Units

Lien Term

Program

$22,000

1

5 years

Owner Occupied

$22,000

1

10 years

First Time Home Buyer

$10,000

Per unit

5 years

Landlord Rehab

$24,000

2

5 years

Owner Occupied

$5,000

1

1 year

Emergency Repair

Landlord Rehabilitation Loan Program

BEFORE

AFTER

The Landlord Rehabilitation Loan Program offers deferred loans to landlords of rental properties that

  • contain up to 10 housing units
  • maintain 51% of units occupied by low to moderate income households

Landlords may borrow 50% of the total rehabilitation costs up to a maximum of $10,000 per unit. Full loan forgiveness may be requested if the units have been made available to income eligible tenants and the property remained free of code and energy violations during a five-year lien period.

First Time Homebuyer Program

BEFORE

AFTER

In order to encourage homeownership within the City, the First Time Homebuyers Program offers a two lending opportunities:

  • A mortgage at one point below prime from the City's lending partner
  • A loan of up to $22,000 from the City to address code violations, lead-based paint hazards and weatherization improvements.

Additionally, a contingency fund equal to 10% of the original loan amount is made available for one year after the sale is closed in order to address any other rehabilitation needs that arise. The applicant must meet income guidelines and must not have owned other real estate in the past three years. Applicants are required to put a modest 3% down payment on the home.

The designated lien period is ten years. This program offers loan forgiveness at the end of the designated lien period if the property has not been sold and has been properly maintained.