Housing: Frequently Asked Questions

 

  1. What is the Housing Rehabilitation Loan Program?
  2. Who is eligible for a Housing Rehabilitation loan?
  3. What are the income limits for a Housing Rehabilitation loan?
  4. Am I limited to how the Housing Rehabilitation loan funds may be used?
  5. What is the interest rate for a Housing Rehabilitation loan?
  6. What are the amounts and terms of the Housing Rehabilitation loan?
  7. How are the terms and rates for a Housing Rehabilitation loan possible?
  8. Are there any fees for a Housing Rehabilitation loan?
  9. How do I choose a contractor for a Housing Rehabilitation loan?
  10. How long does it take to get approved for a Housing Rehabilitation loan?
  11. What is the Homestead Opportunity Loan Program?
  12. Who is eligible for a Homestead Opportunity loan?
  13. Am I limited to how the Homestead Opportunity loan funds may be used?
  14. What is the interest rate and term for a Homestead Opportunity loan?
  15. How are the Homestead Opportunity loan terms and rates possible?
  16. Are there any fees for a Homestead Opportunity loan?
  17. How do I choose a lender for a conventional mortgage?
  18. How do I sign up for the Fox River Flood Mitigation (Buyout) Program?
  19. Will the County make me sell my Fox River floodplain house under the Fox River Flood Mitigation Program?
  20. Does the County have money to buy my Fox River floodplain house under the Fox River Flood Mitigation Program?
  21. How much money will the County offer me for my Fox River floodplain house under the Fox River Flood Mitigation Program?
  22. What other benefits can I receive if I participate in the Fox River Flood Mitigation Program?
  23. How long does it take to get my home purchased under the Fox River Flood Mitigation Program?
  24. Who provides Section 8 rental assistance for County residents?

 

 

1.  What is the Housing Rehabilitation Loan Program?

 

A program making no-interest and low-interest loans available to low- and moderate- income homeowners and to investor-owners. It is funded by the State of Wisconsin and is administered by the Kenosha County Housing Authority with staff support provided by the Southeastern Wisconsin Regional Planning Commission.

 

2.  Who is eligible for a Housing Rehabilitation loan?

An owner-occupant of a residential structure who:

  • Is within program limits (see Question No. 3).
  • Lives in Kenosha County, outside of the City of Kenosha.
  • Complies with all program criteria.

 

An investor-owner, who also agrees, for a period of five years or the term of the loan, whichever is less to:

  • Rent to households within program limits.
  • Charge rents within established limits.

 

3.  What are the income limits for a Housing Rehabilitation loan?

 

The income limits for borrowers differ by household size. See the chart below for the income limit for your household.

2007 Housing Rehabilitation Loan Program Income Limits (income limits are updated annually)

Household Size Income Limit
1 $37,050
2 $42,300
3 $47,600
4 $52,900
5 $57,150
6 $61,350
7 $65,600
8 $69,850

 

4.  Am I limited to how the Housing Rehabilitation loan funds may be used?

 

Loan funds may only be used for permanent property improvements:

  • To save energy, e.g. insulation, weatherstripping, a new heating system, etc.
  • To correct health and safety code problems, e.g. new wiring, plumbing, etc.
  • To improve livability, e.g. repairing floors and walls, replacing a roof, etc.
  • To extend the economic or physical life of the housing unit, e.g. siding, painting, etc.

 

Loan funds may not be used to complete work already in progress, to pay off or refinance other loans, to create new living space, or finance certain ineligible activities as defined by the Housing Authority.

 

5.  What is the interest rate for a Housing Rehabilitation loan?

 

Rates are subject to change, however the program currently offers the following:

Owner-occupied: 0%, deferred
Tenant-occupied: 0%, installment

6.  What are the amounts and terms of the Housing Rehabilitation loan?

Loan amounts are determined by the cost of the work to be completed, the amount of equity in the property, and funding availability. The maximum loan amount per household is $24,999. Payment for owner-occupied loans is deferred and interest free until the property ceases to be the principal place of residence of the borrower. Investor-owner loans are provided with 5, 10, 15, or 20 year terms.

 

7.  How are the terms and rates for a Housing Rehabilitation loan possible?

The Housing Authority has been awarded several Community Development Block Grants (CDBG) from the State of Wisconsin for loans to owner-occupants and investor-owners. Repayments on previous loans are re-loaned for housing rehabilitation activities.

 

8.  Are there any fees for a Housing Rehabilitation loan?

There are nominal fees for recording and filing, title examination, and property inspections that may be included as a part of the housing rehabilitation loan should you receive funding from the Housing Authority.

 

9.  How do I choose a contractor for a Housing Rehabilitation loan?

Program participants are free to choose any contractor, so long as they meet the requirements of the Housing Authority. Contractors must carry the proper insurance and meet all licensing and certification requirements of the State of Wisconsin. The Housing Authority does not recommend or endorse contractors.

 

10.  How long does it take to get approved for a Housing Rehabilitation loan?

Depending on when your loan application is received and processed, it can take up to a month for your loan application to be presented to the Kenosha County Housing Authority (KCHA) Board of Commissioners for approval. The KCHA Board meets usually no more than once a month.

 

11.  What is the Homestead Opportunity Loan Program?

A program making no-interest loans available to low- and moderate- income renters for the purchase of a single-family home in Kenosha County, outside the City of Kenosha. It is funded by the State of Wisconsin and is administered by the Kenosha County Housing Authority with staff support provided by the Southeastern Wisconsin Regional Planning Commission.

 

12.  Who is eligible for a Homestead Opportunity Loan?

A current renter who:

  • Is within the following program income limits.
     

    2007 Homestead Opportunity Loan Program Income Limits (income limits are updated annually)

     
    Household Size Income Limit
    1 $37,050
    2 $42,300
    3 $47,600
    4 $52,900
    5 $57,150
    6 $61,350
    7 $65,600
    8 $69,850
     
  • Can obtain first mortgage bank financing.
  • Will purchase and occupy a home in Kenosha County, outside of the City of Kenosha.
  • Complies with all other program criteria.

 

13.  Am I limited to how the Homestead Opportunity loan funds may be used?

Loan funds may only be used for downpayment and closing cost assistance. Program participants must provide at least 50% of the downpayment from their own funds. Loan funds may be used for the following purchase related costs:

  • Up to 50% of a reasonable downpayment (reasonable is defined as no more than 20% of the home’s purchase price).
  • For rehabilitation of a property when the lender agrees to credit the increase in the property’s value towards the required downpayment.
  • For payment of bank fees and closing costs that include application fees, appraisals, flood certification, document preparation, filing fees, legal fees, and other fees deemed reasonable by the Kenosha County Housing Authority.

 

Loan funds may not be used to pay off or refinance other loans, to pay for escrow items such as property taxes and insurance, or to finance certain ineligible activities as defined by the Housing Authority.

 

14.   What is the interest rate and term for a Homestead Opportunity loan?

Program participants will receive a loan at 0% interest and payment will be deferred until such time as title to the property changes or the property ceases to be the principal residence of the borrower.

 

15.  How are the Homestead Opportunity loan terms and rates possible?

The Housing Authority has been awarded a 1998 Community Development Block Grant (CDBG) from the State of Wisconsin for loans to eligible homebuyers. Repayments on these loans will be re-loaned for additional Homestead Opportunity activities.

 

16.  Are there any fees for a Homestead Opportunity loan?

There are nominal fees for recording and filing, title examination, and property inspections that may be included as a part of the Homestead Opportunity loan should you receive funding from the Housing Authority.

 

17.  How do I choose a lender for a conventional mortgage?

Program participants are free to choose any lender, so long as they are willing to accept the Housing Authority loan as a portion of the required downpayment, and they offer market rates and terms to program participants. The Housing Authority does not endorse or recommend lenders.

 

18.  How do I sign up for the Fox River Flood Mitigation (Buyout) Program?

Call the Housing Authority (262-857-1843). If your home is located in the 1% annual probability (100-year) floodplain of the Fox River, the Housing Authority will send you a survey to complete that will assist the County in its grant applications for the Buyout program.

 

19.  Will the County make me sell my Fox River floodplain house under the Fox River Flood Mitigation Program?

No, this is a completely voluntary program. The County will not use its eminent domain authority to acquire properties under this program.

 

20.  Does the County have money to buy my Fox River floodplain house under the Fox River Flood Mitigation Program?

The County will apply for grants to fund the Buyout program from the Federal and State governments when grants are offered. Under normal circumstances, the County cannot apply for grants until a Presidential Disaster Declaration has been issued for the State of Wisconsin.

 

21.    How much money will the County offer me for my Fox River floodplain house under the Fox River Flood Mitigation Program?

Offers to purchase are based on the value determined from a current appraisal that provides the fair market value of the property.

 

22.  What other benefits can I receive if I participate in the Fox River Flood Mitigation Program?

  • Above and beyond the purchase price for the property, owner-occupied properties may be eligible to receive up to $25,000 for a purchase differential payment for a replacement property, a moving expense payment, an incidental expense payment, and a mortgage interest differential payment.
  • Tenant-occupied properties are eligible to receive up to $8,000 for a rent differential payment or downpayment on the purchase of a replacement property, a moving expense payment, and an incidental expense payment.
  • Vacant and seasonal properties are eligible to receive a moving expense payment based on the number of rooms in the house.

 

23.  How long does it take to get my home purchased under the Fox River Flood Mitigation Program?

There is no specific timeline that the County uses to purchase homes. The County can only apply for grants to purchase homes after a Presidential Disaster Declaration is issued for the State of Wisconsin. On average, it can take up to one to two years from the time you contact the County to the time the County can actually provide an offer to purchase your property.

 

24.  Who provides Section 8 rental assistance for County residents?

The City of Kenosha Housing Authority (262-653-4120) provides rental assistance in the City of Kenosha, and Horizon Management (800-333-8250, ext. 151) provides rental assistance to Kenosha County residents.