CITIES HOUSING REHABILITATION
administers a revolving loan fund available to income
eligible residential property owners for housing
Funded initially by monies from the U.S.
Department of Housing and Urban Development (HUD)
distributed through the Connecticut Department of
Economic Development (DECD), the loan program is
sustained by re-payments of loans made to Branford
recipients at various times since program inception in
has retained L. Wagner & Associates, Inc. to coordinate
its local housing rehabilitation loan program and to
serve as the Town’s
of the work that may be eligible for funding includes
the correction of health and safety violations, code
compliance, roofing, carpentry, electrical work,
painting, plumbing, heating, and other non-luxury work
subject to approval of the
elements of the program are explained below.
APPLICATION & ELIGIBILITY
Download the application here.
applications must be fully completed and returned to the
address listed on page 2 of the application.
Applications are reviewed on a first come first
Eligibility is based on a combination of household size
and annual household income.
Income documentation for each of the household
residents over the age of eighteen must be submitted
with the application.
This documentation must include copies of a
minimum of the last 3 pay stubs, the most recent Federal
tax return, social security documentation, or other
pertinent income information.
All tax returns must be signed.
income limits, which determine program eligibility,
differ for each community.
In the Town
you may be eligible for a deferred loan if your annual
household income is at or below the following amounts:
Persons In Household
Income limits are subject to periodic change.
to value ratios for each property are also reviewed to
determine the availability of equity which is considered
when determining maximum loan amounts.
The Owners may provide their own property
appraisal at their expense, for the
Typically, funds are offered in the form of deferred
loans to property owners.
Deferred loans are 0% interest loans which
require no payment until the property is sold or
re-financed, the owner dies or the subject property is
no longer the applicant’s principle place of residence.
Investors may be eligible for direct loans with
interest rates up to 3% and maximum terms of 15 years.
All loans are secured with a mortgage deed,
promissory note, and memorandum of agreement.
TYPICAL REHABILITATION PROCESS
Once applicants are determined to be eligible, the
Rehabilitation Consultant will contact the Owner to
schedule an initial inspection.
This inspection allows the Rehabilitation
Consultant to explain the program in greater detail and
to determine the specific needs of the property and what
can be funded under this program.
While many repairs are eligible, some may not be
warranted depending on individual circumstances, cost,
and the condition of the property.
All participating homes built prior to 1978 will be
tested for hazardous levels of lead based paint.
Lead Based Paint Reduction/ Mitigation efforts
will be performed in accordance with Federal and State
The Building Official and, in some cases, the Fire
Marshal may perform a separate inspection of the
dwelling to ensure that code related concerns are
The Rehabilitation Consultant will contact the
appropriate parties and provide them with an outline of
the Owner’s proposed scope of work.
After the inspections are performed, the Rehabilitation
Consultant will prepare a preliminary “Scope and Budget”
to estimate the cost of the work proposed.
This document is sent to the Owner for review and
The Owner is responsible for verifying the accuracy of
the proposed scope in comparison to the work to be
Upon acceptance of the Scope & Budget, the
Rehabilitation Consultant will prepare specifications
describing the proposed work.
The specifications will be sent to the Owner for
These project specifications will then be used by
interested contractors in submitting their bids.
Upon receipt of the signed specifications, the
Rehabilitation Consultant will coordinate with the Owner
to schedule a pre-bid conference and bid opening date.
The pre-bid allows interested contractors an
opportunity to visit the site, review the work, and
introduce themselves to the Owner.
The pre-bid is held at the location of the
project and usually lasts 45 minutes to 1 hour.
Bids are received by the
Town on behalf of the Owner.
They are typically opened and read aloud.
Information is compiled and the Owner is notified
of the bid results.
Generally, the low bidder is selected by the Owner.
If the low bidder is not a qualified contractor,
the Town may
extend its financing to the dollar amount of the second
will fund the project based upon the lowest qualified
The Owner may select a bidder other than the low
bidder, provided that the Owner pays the difference
between the low bid and the selected bid.
The contractor is required to provide the Rehabilitation
Consultant and the Owner with current references, valid
insurance, and licensing information.
It is advised that the Owner contact the
references and visit the referenced projects. Ultimately
the contract is between the Owner and the Contractor.
Contract and Loan Closing
Once a contractor is selected, the Rehabilitation
Consultant will prepare contracts and loan documents.
A meeting will be arranged for all participants
to review and sign these documents.
It is important to understand that the contract for the
work is between the Owner and the general contractor.
All scheduling, selections, and arrangements shall be
made between these two parties.
The Rehabilitation Consultant will periodically
visit the site to ensure compliance with the
requirements. The Town
may also perform additional inspections.
The contractor receives no money down at signing and is
paid in installments as the work is completed and
approved by both the Owner and the
The Owner, the
Town’s agent, and the contractor will meet to
inspect the work and approve a payment.
The contractor will provide a signed and
notarized lien waiver at each payment or as appropriate.
A two party check is issued by the
Town made payable
to the Owner and to the contractor.
The check is sent to the Owner for endorsement
and forwarded to the contractor by the Owner.
The contractor is responsible to the Owner to provide
all warranty information and warranty their work for a
minimum of one year after completion.
RIGHTS AND RESPONSIBILITY
Under this program the Owners have the right to withdraw
their application at any time until the contract and
loan closing. The Owner also has the right to rescission
and the right to terminate the loan and contract within
three business days of signing.
The Owners must disclose all required information in a
Any willful misrepresentation may result in the
disqualification of an application.
The Owners have the right to hire any bidder they
choose, as explained in the previous section on the bid
process, subject to certain conditions.
All colors, models and materials will be selected or
approved by the Owner prior to installation.
The Owner is responsible to respond to the
Town’s agent and/
or the contractor with these decisions or any other
decisions within a reasonable amount of time.
The Owners must make themselves reasonably available for
inspections, pre-bids, work scheduling, and meetings.
The Owners must make their home available to the
contractor during normal working hours.
The Owners are responsible for the safe keeping of their
possessions, as well as moving, and storage of furniture
unless otherwise stated.
The Owner can not withhold payment from the contractor
for items not related to the contract or if the work has
been approved by the