Detroit 0% Interest Home Repair Loan Program 1 CITY OF DETROIT HOUSING & REVITALIZATION DEPARTMENT Program grant sub-recipient overseeing loan capitalization ($8 Million Loan Pool), develop and implement program design, oversee application intake, loan underwriting and loan servicing. Local Initiative Support Corporation (LISC) Provide program design, development and technical assistance. Corporate F.A.C.T.S., Inc. Non-Profit Community Organizations receive and review applications. Intake Centers (Total 12) Opportunity Resource Fund, Communicating Arts Credit Union – Performing loan underwriting, loan closing, construction contractor payment disbursement, and loan servicing. Community Development Financial Institutions (CDFI) Perform project inspections, specification writing, bidding and contract award, construction management. Construction Manager (GS Group, LLC) Perform home repair work including minor repairs, replacement of deteriorated building components, and lead-based paint hazard reduction. General Construction Contractors (Total 35) Monitor sub-recipient, develop and implement program design, policy and procedures, manage construction activity, maintain program files. Housing & Revitalization Staff CITY OF DETROIT

0% Interest Home Repair Loan Applications Status  1,092 – Total Complete Applications and Forwarded to LISC from Intake Centers for Processing  909 – Total Applications Forwarded to the CDFI’s for Underwriting  427 – Applications Denied for various Underwriting Criteria  13 – Applications Withdrawn by Applicants  324 – In Various Stages of underwriting (80-Additional info requested from Homeowner)  145 – Applications Pre-Approved and in the Inspection, Spec, Bid, or Construction Phase 2 CITY OF DETROIT

3 Through September 22 ND, LISC has received 53 completed applications from the intake centers. Based on the current activity, They projected a total of 70 applications for the remainder of this month. Moving forward they are projecting 50 applications per month through December, for a total of 150 new applications by the end of the year. To date, 654 applicants reside within the five designated NRSAs, representing nearly 60% of the completed home repair applications received at LISC. Overall, 436 applicants (66%) in the NRSAs are below 80% AMI while 218 applicants (34%) are above 80% AMI. The three Slum & Blight areas represent approximately 6% of the applications, for a total of of the 145 pre-approvals are from the five NRSAs. When analyzing the pre- approvals from the NRSAs, 47 applicants (51%) are below 80% AMI while 46 applicants (49%) are above 80% AMI. Zero Percent Interest Home Repair Loan Program Analysis Update CITY OF DETROIT

4 District # of Applications Submitted # of Applications Approved Total Amount Approved $402, $299, $338, $595, $393, $487, $526,396 Total 1,092145$3,044,077 District applications submitted 19 approved for $402,500 District applications submitted 17 approved for $299,914 District applications submitted 18 approved for $338,183 District applications submitted 26 approved for $595,384 District applications submitted 17 approved for $393,758 District 6 97 applications submitted 22 approved for $487,942 District applications submitted 26 approved for $526,396 0% Interest Home Repair Loan Program Applications by District Update CITY OF DETROIT

How Much Can I Borrow?  0% interest home repair loans from $5,000 to $25,000 are available to qualified Detroit homeowners who can afford a loan.  0% interest means homeowners can invest in their home and neighborhood while paying back only what they borrow. 5 CITY OF DETROIT

Who Can Apply? This program is intended to reach as many Detroit homeowners as possible. Below are the minimum qualifications:  Homeowners must own and occupy their home for at least six months prior to applying.  Low-income homeowners can apply no matter where they live. Low-income is defined as $37,950 for a family of one or $54,150 for a family of four.  Regardless of income, homeowners in designated areas in each city council district can still apply.  The minimum credit score is 560.  Homeowner’s insurance and taxes must be current.  The homeowner must be able to afford the loan payments. 6 CITY OF DETROIT

Eligibility - Target Areas 7| CITY OF DETROIT

How do I apply:   In addition to the website, applications are available at Neighborhood Intake Centers, City of Detroit Neighborhood District Managers’ offices, and City of Detroit Recreation Centers.  For questions as to the status of your application please contact LISC at (313) , D. Thompson, Home Repair Coordinator. 8 CITY OF DETROIT

Can I Appeal if I am Denied a Loan? 9  Applicants who are denied a loan can appeal decision in writing to the City of Detroit Housing & Revitalization Department, at 2 Woodward Avenue, Detroit, MI  All appeals will be reviewed by the Housing & Revitalization Department, with a decision within 15 business days of receipt of the appeal request. CITY OF DETROIT

What assistance can I receive if I don’t qualify?  If homeowners do not qualify for a loan or cannot afford it, they can receive free credit and debt counseling to help improve their financial outlook.  For more information on credit counseling please contact your nearest Intake Center.  For a list of intake centers go to 10

Eligible Costs 11| If the home has health and safety hazards, those issues must be addressed first before other repairs can be made. The follow are sample projects: CITY OF DETROIT

ZERO PERCENT HOME REPAIR PROGRAM Application Reviewed for Completion by Intake Agency Homeowner Submits Application to Intake Agency Homeowner approves scope of work Inspections scheduled and Conducted Construction BeginsFinal inspections completed Homeowner referred to other resources or services such as credit counseling. N Lowest Bid Selected Homeowner notified of missing documents Application submitted to financial institution Homeowner notified of receipt Application reviewed for Eligibility Homeowner may be asked for additional information Application forwarded to City of Detroit Homeowner contacted by Construction Manager Process can take up to 30 days* Process can take up to 60 days* Process can take up to 90 days* *Timeline is an estimate and will vary depending on the availability of homeowner to meet with the program representatives and responsiveness to requests for additional information. Homeowner selects contractors to submit bids Y Homeowner notified of loan amount Is homeowner approved?  Construction Completed Repayment begins Complete CITY OF DETROIT

Program Process 13| Program Intake (1-2 weeks) Loan Review (2-3 weeks) Inspections/ Scope of Work (3-4 weeks) Bidding & Select Contractor (3 weeks) Loan Closing (1 week) Construction (5-8 weeks) Project Complete *Completed application until construction begins – approx. 60 days CITY OF DETROIT

YOU BELIEVED IN DETROIT. DETROIT BELIEVES IN YOU. CREATING STRONGER NEIGHBORHOODS BY PROVIDING 0% INTEREST LOANS TO DETROIT HOMEOWNERS. YOU PAY BACK ONLY WHAT YOU BORROW. 14 CITY OF DETROIT