Successful Partnership Prevent Red Tags for Elderly and Disabled Homeowners

Successful Partnership Prevents Red Tags for Elderly and Disabled Homeowners

Sioux City, IA – March 30, 2011 – (RealEstateRama) — The City of Sioux City, Neighborhood Services Division has partnered with Inspection Services Division to develop a new program. “We have formed a unique partnership to help low-income elderly, and disabled homeowners with critical emergency repairs that have reduced life, health and safety hazards and improved homeowners’ quality of life” says Darlynn McMullen.

The purpose of the program is to stabilize the elderly and disabled homeowner’s residence by making rapid, essential repairs to make the home livable. The program will allow eligible elderly and disabled homeowner’s to safely remain in their homes and prevent a potential Red Tag situation. However, this is not a comprehensive homeowner rehabilitation program.

To be eligible for assistance, elderly homeowners must be 62 years of age or older and disabled homeowner’s must be receiving disability compensation as their source of income the homeowner’s household income must not exceed 80 percent of the area median income established by HUD for Woodbury County. This program is funded with federal grant dollars which allows City staff to reduce the impact on local budgets.

After the client has satisfied the application requirements for financial assistance the case will be processed through Inspection Services, Darrel Bullock will assign a Building Inspector to evaluate the emergency repair. The Building Inspector will write up the work specification and request a bid tour for licensed contractors to attend. The low bidder will be determined at the scheduled bid opening.

Neighborhood Services Project Coordinator will prepare the Contract for the homeowner and contractor to sign. The homeowner will also be required to sign a promissory note and mortgage for the contract dollar amount this will be a Deferred Payment Loan (DPL). The DPL is a forgivable loan as long as the homeowner doesn’t sell or vacate the property for two years. After the second anniversary date of the DPL it is forgiven and released.

Contact:
Darlynn McMullen
712-279-6342