www.co.worcester.md.us

Housing Rehabilitation

Jo Ellen Bynum, Program Administrator
Phone: 410-632-1200 (ext. 1171)
Fax 410-632-3008
jbynum@co.worcester.md.us

The Worcester County Housing Rehabilitation Program is administered through the Worcester County Department of Development, Review and Permitting. This program provides grant and loan funding to both owner occupied and rental properties for general rehabilitation and lead abatement services. The Special Loans Rehabilitation Application is utilized for all grant and loan programs and may be downloaded below. The following is some general information on available funding:

Special Loans Rehabilitation Application

 

Owner Occupied Housing

 

Grants

General Rehabilitation

  • The homeowner must occupy the dwelling as his or her principal residence and may not own other houses/properties.
  • The dwelling must have existing conditions that do not meet the County's Minimum Livability Code; all items must be brought up to code at completion of rehabilitation work.
  • Homeowner must be willing to accept loan funding to supplement the grant award as necessary to meet the minimum code requirements.
  • Homeowner must have acceptable credit or be willing to set up payment plans on any non-medical accounts in Collections. Judgments must be paid in full.
  • Property taxes must be paid in full at time of application.
  • Priority is given to Senior Citizens, the Disabled and families with extremely low income and to houses with safety and/or health hazards.
  • Grant terms are 5-15 years; no payment due back to County unless the property is sold or refinanced during the grant period. Grants are secured with a recorded property lien.

Lead Abatement

  • The homeowner must occupy the dwelling as his or her principal residence and may not own other houses/properties.
  • The family must be of extremely low income or have insufficient funds to make loan payments or the cost of lead abatement must exceed the assessed value of the dwelling.
  • Home must be in an eligible census tract.
  • House must be structurally sound.
  • No minimum grant term, no repayment required if house is sold or refinanced 10% match required if family income is over 80% of the median.

Loans

  • Home may be rural or in any incorporated township of Worcester County.
  • Priority is given to dwellings having existing conditions that do not meet the County Minimum Livability Code; however, up to 40% of the work may be cosmetic in nature. All items must be brought up to code at the completion of rehabilitation work.
  • The family must be of low to moderate income.
  • Homeowner must have acceptable credit or be willing to set up payment plans on any non-medical accounts in Collections. Judgments must be paid in full.
  • Interest rates are between 0% and 7%. Payments are scaled to family's ability to re-pay, loans may be completely deferred. Full loan balance due back to the State when property is sold. Full balance may be due if property is otherwise transferred or re-financed.

 

Rental Housing

Grants

Lead Abatement

  • Property may be located in a rural area or incorporated municipalities of Worcester County.
  • Property must be in an eligible census tract.
  • Property must be registered with the MDE.
  • Property must meet the County Minimum Livability Code upon completion of rehabilitation.
  • Underwriting must show that there is insufficient income from the property to make loan payments.
  • Owner must provide tenant relocation.
  • 20% match and processing fees must be paid out-of-pocket.

Loans

General Rehabilitation & Lead Abatement

  • Property may be located in a rural area or incorporated municipalities of Worcester County.
  • Property must be registered with MDE.
  • Owner must have 2 years of sound credit history.
  • Rental rates cannot exceed 30% of the tenant's household income.
  • Owner must provide tenant relocation if project includes lead abatement or if construction process is expected to result in loss of access to a kitchen or bathroom.
  • Restrictions are placed on incomes of tenants occupying the property for 10-15 years following rehabilitation or until principal balance is paid.
  • Interest rates are from 0% to 7% and are based upon the incomes of the tenants residing in the building and the project income available to pay the loan. Closing costs and application processing costs must be paid out-of-pocket.