Norwalk Rehabilitation Program

Rehabilitation Assistance Program Pilot Project

The City of Norwalk has recently established a pilot program to help preserve and improve the community’s housing stock that is affordable to low and moderate income (LMI) households. This program provides a 5-year forgivable loan from the City to assist with eligible housing rehabilitation projects. The City has capped the maximum amount of assistance per project at $15,000 and capped the annual funds available to the program at $50,000.

Please review the eligibility criteria, eligible repairs, and terms of the forgivable loan prior to completing and submitting an application.

Application Process
To apply please download and complete the application form linked below. A paper copy of the form can be picked up at the Community Development Office inside City Hall, 705 North Avenue. The form must be completed in its entirety and submitted with the required supporting documentation prior to Staff review. Supporting documentation are listed in the application Additional Document Checklist and includes:

  • Current Certificate of Insurance
  • Current Statement from Mortgage Holder showing current amount
  • Copy of most recent Income Tax Return
  • Copy of Year-to-Date paycheck stubs

RAP Application

Staff will accept and review applications on a first come/first serve basis. Once eligibility is determined, the Applicant will be responsible for arranging a Contractor for the desired work and a Bid and Proposal for the work shall be submitted to staff. The City will then enter into a Contract with the Applicant and their Contractor for the scope of work. The Applicant will also provide a Promissory Note & Mortgage. Once the Contract and Agreement have been approved by the City, the Applicant and Contractor will be allowed to proceed with the project. No funding through the Rehabilitation Assistance Program will be available for work/expenses that is completed prior to Contract and Agreements with the City. Sample contract and agreement are included below:

RAP CONTRACT

RAP PROMISSARY

If you need any assistance in filling out the application or if you have any questions, please contact the Community Development Department at (515) 981-9530.

Eligibility Criteria
To be eligible for consideration, applicants must meet the following criteria:

  1. Income less than the LMI threshold for a household:
lmithresholds
  1. Reside within City of Norwalk corporate limits
  2. Be the property owner and reside at the location.
  3. Commit to own and reside at the property for 5 years from the date of distribution of funds.
  4. Be in current good standing with:
  5. Mortgage Payments
  6. Property Tax
  7. Utility Payments
  8. Property Insurance
  9. Use the property primarily for a residence. Funds from this program may not be used for improvements to any part of a home?based business.
  10. Agree to keep the property in good condition and not allow any nuisances to occur on the property.

Eligible Repairs
Eligible items may include:

  1. Exterior Structural Repairs
  2. Siding (new or painting of old)
  3. Soffits
  4. Windows (new or repair of existing)
  5. Doors (exterior and garage doors)
  6. Roofing (new or repair of existing)
  7. Chimney repair
  8. Other repairs deemed acceptable and necessary by the Community Development Department
  9. Exterior Site Repairs
  10. General property clean up
  11. Clean up of overgrown landscaping
  12. Removal of dead or dying trees/branches
  13. Sidewalk and driveway repairs
  14. Other repairs deemed acceptable and necessary by the Community Development Department
  15. Interior Structural Repairs
  16. Foundation Repair
  17. Electrical
  18. Heating and Cooling
  19. Plumbing
  20. Drywall repairs necessary for other structural repairs (plumbing, electrical, HVAC, etc.) or health concerns, such as remediating a mold concern.
  21. Insulation
  22. Other repairs deemed acceptable and necessary by the Community Development Department

Terms of Loan
Applicants will agree to the following terms:

  1. If the property is sold or transferred prior to the first (1st) year anniversary of this instrument, 100% of the amount shown above shall be called due.
  2. If the property is sold or transferred after the first (1st) year anniversary and prior to the second (2nd) year anniversary of this instrument, 80% of the amount shown above shall be called due.
  3. If the property is sold or transferred after the second (2nd) year anniversary and prior to the third (3rd) year anniversary of this instrument, 60% of the amount shown above shall be called due.
  4. If the property is sold or transferred after the third (3rd) year anniversary and prior to the fourth (4th) year anniversary of this instrument, 40% of the amount shown above shall be called due.
  5. If the property is sold or transferred after the fourth (4th) year anniversary and prior to the fifth (5th) year anniversary of this instrument, 20% of the amount shown above shall be called due.
  6. After the fifth (5th) year anniversary of this instrument, the entire amount as shown above is forgiven and no money will be due to the City.