Department of Community Services

"We are a community partner creating opportunities to improve the quality of life for the people of O'ahu"

REHABILITATION LOAN BRANCH PROGRAM

Thinking about fixing up your home? The City wants to help? Low and moderate income homeowners who would like to repair their properties, but are reluctant to do so because of the high costs may qualify for the City & County of Honolulu's Rehabilitation Loan Program. This program provides zero or low interest loans to income-qualified homeowners enabling them to repair their homes to meet basic housing quality standards.

1. Q.    WHAT IS THE REHABILITATION LOAN PROGRAM?
   
   A.    The rehabilitation loan program was established by the City to make low-interest loans available to eligible property owners who are interested in repairing and improving their properties.
   
   
2. Q.    WHAT KIND OF REPAIRS OR IMPROVEMENTS CAN BE MADE WITH THE LOAN?
   
   A.    The loan can be used to repair and correct deteriorated and hazardous conditions on the property such as damage caused by termites or wood rot, leaky roof and drain pipes, peeling paint, faulty electrical wiring and plumbing, etc. The loan can also be used to accomodate the special needs of disabled household members.
   
   
3.  Q.    WHO IS ELIGIBLE TO APPLY FOR A LOAN?
   
   A.    Owner-occupants whose household income is within the income schedule listed below are eligible. The current maximum income limits for owner-occupants, by number of persons in a household, are as follows:
   
   

   1	2	3	4	5	6	7	8
   55,650	63,600	71,550	79,450	85,850	92,200	98,550	104,900

   
   
4. Q.    WHAT MUST A HOMEOWNER REPAIR AND CORRECT UNDER THE LOAN PROGRAM?
   
   A.    To ensure the property is safe and sanitary, all deficiencies noted by a City rehabilitation inspector must be repaired and corrected.
   
   
5. Q.   HOW MUCH CAN A HOMEOWNER BORROW?
   
   A.    The maximum loan is $75,000. Loan amount will depend upon the available equity on the property. 
   
   
6. Q.    WHAT KIND OF INTEREST RATE WILL THE BORROWER BE PAYING?
   
   A.    The interest rate and repayment schedule will vary according to the gross income(income from all sources) of the family and the family count. The current interest rates are as follows:

   INCOME-INTEREST RATE SCHEDULE

   Number of Members in Household	0%		2%
   1	$41,800		$55,650
   2	47,700		63,600
   3	53,700		71,550
   4	59,600		79,450
   5	64,400		85,850
   6	69,200		92,200
   7	74,000		98,550
   8	78,700		104,900

   *Monthly payments on loans may be partially deferred for the term of the loan (15 or 20 years).  The term of the loan may be extended at the end of the 15 or 20 years if the borrower remains qualified for such a loan.

7. Q.    WHAT ARE SOME OF THE REHABILITATION SERVICES AVAILABLE TO HOMEOWNERS?
   
   A.    A City rehabilitation inspector will inspect the property and prepare a checklist that will outline eligible work. The owner can use this checklist to obtain a proposal from a licensed contractor.
   

8. Q.    HOW ARE LOAN FUNDS DISBURSED?
   
   A.    Following loan settlement, funds are retained by the City and disbursed to the contractor(s) after the work is completed to the satisfaction of the Homeowner and the City's Rehabilitation Inspector. For contracts of $10,000 or more, funds may be disbursed in up to four increments as the work progresses after approval by the Homeowner and the City's Inspector.
   

9. Q.    HOW IS THE LOAN SECURED?
   
   A.    Loans will be secured by a promissory note and a mortgage on the property.
   

10. Q.    WHERE CAN A HOMEOWNER OBTAIN MORE INFORMATION?
    
    A.    The City Rehabilitation Branch has two locations.  The Downtown Office is located at 51 Merchant Street and the phone number is 768-7076 and the Kapolei Office is located at 1000 Ulu'ohi'a Street and the phone number is 768-3240.

11. Q.    WHAT ELSE CAN YOU TELL ME ABOUT THE LOAN?
    
    A.    If your home was built prior to 1978, a Lead Based Paint Assessment is required prior to commencement of rehabilitation work.  The cost of the assessment may be added to the loan.

12. Q.    WHAT IF THE ASSESSMENT DETERMINES LEAD BASED PAINT IS PRESENT?
    
    A.    If Lead Based Paint Abatement is required, the cost of the abatement may be added as part of the loan or you may choose not to proceed with the project.