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P.A.L.S. PROGRAM
OAK BLUFFS, EDGARTOWN, & CHILMARK
Program Guidelines
The RESOURCE INC. (TRI) is a private, non-profit organization dedicated to providing solutions to the affordable housing and economic development issues facing the Towns of Martha’s Vineyard. TRI is currently accepting applications for the P.A.L.S Program, funded by Community Preservation Funds in the Towns of Edgartown, Oak Bluffs and Chilmark. These guidelines are provided to those interested in a program overview. Deferred forgivable loans of up to 35,000 at 0% interest are available to qualified applicants, whom meet the below 100% of area wide median income requirement.
The P.A.L.S Deferred Loan Program grant priorities are to:
Address the health and safety repairs in single-family, owner-occupied properties.
Increase and maintain the supply of affordable, year-round rental housing.
PROPERTY GUIDELINES:
Owner Occupied Single-Family Homes
A single-family property may be eligible for a structural rehabilitation loan based on the property owner’s ability to meet income eligibility (low or moderate) guidelines. Please see the income eligibility chart to determine your eligibility according to household size.
In some instances, single-family property owners may be required to provide a portion of the total rehabilitation costs. Funds beyond the portion provided by TRI are the sole responsibility of the property owner and must be verified prior to loan approval.
The single-family property must be the property owner’s (or direct heir, in the case of death prior to the end of the loan term) primary year-round residence. If at some point in the term of the loan the homeowner wishes to rent the property, it must be to a year round income-eligible tenants at a below-market rent rate that someone of under 100% of area wide median income can pay as determined by the Dukes County Regional Housing Authority. TRI or the Towns designee must be notified prior to renting the property.
Single Family homes assisted with program funds if rented, at any point during the fifteen (15) year lien, must be rented to year-round, income eligible (under 100% of are wide median income) tenants at an affordable rent level .The affordable rent levels will be determined in accordance the Dukes County Regional Housing Authorities "Rental Assistance" program guidelines.
Program eligibility will be based on repairs needed to secure the recipients building envelope.
Structural Rehabilitation costs incurred prior to acceptance into the Program will not be eligible for reimbursement (this includes the cost of Septic Plans and application/Permit fees that homeowners may have purchased or incurred prior to acceptance and application qualification)
If you decide to rent your home after participating in the P.A.L.S. Program It will be the responsibility of the property owner to contact the Dukes County Regional Housing Authority and request information regarding rental rates based upon the amount of bedrooms in your home that you may charge for a person/persons blow 100% of area wide median income. It will also be the responsibility of the Landlord to receive verification from the Dukes County Regional Housing Authority that the proposed tenant meets the income requirements of below 100% of area wide median income as is required of a tenant living in a home that has received funds from the P.A.L.S. Program. If this criteria is not met the homeowner will be in violation of the Program Guidelines and the Town or its entity may require the Lien to be paid in full.
Towns will perform annual audits, including verification of tenants and rents (if you have tenants) for the fifteen-year duration of the loan. If the property owner is considered to be in non- compliance, TRI will work with the property owner to address the non-compliance. If no resolution is met, the loan will be considered in default.
Tenant selection beyond income eligibility is the sole responsibility of the property owner(s).
THE HOUSING REHABILITATION LOAN:
The rehabilitation funds for owner-occupied single-family homes operate as a 0% Deferred Forgivable Loan.
The 0% Deferred Forgivable Loan will be forgiven after the 15th anniversary of the loan signing date, as long as the Owner has not defaulted on the terms of the loan and/or the Owner has not sold the property or passed away and the heirs sold the property. If none of these events have occurred the entire loan and the recorded mortgage will be eligible for discharge. The Homeowner will be given a recordable discharge by the Town or its entity that the Homeowner may take to the Dukes County Registry of Deeds and record.
Loans are secured by a property lien (Mortgage) for the term of the loan, recorded at the Dukes County Registry of Deeds/ Registry District of the Land Court.
Loan closing costs are included in the Mortgage and Promissory Note amounts. Loan closing costs may include, but are not limited to, title searches and Dukes County Registry of Deeds and recording fees. Typical closing costs average between $250 and $450 and are covered under the loan amount.
If the property is sold or transferred before the loan term restriction has expired or if there is a default by the Borrower, the entire loan must be repaid.
ELIGIBLE PROPERTY REPAIRS:
This Program was designed to help income qualified homeowners secure their building envelope. This is not a program that will address maintenance issues, or items that add to the "material comfort" of the homeowner.
Types of eligible structural work that could/can be performed include, but are not limited to: roof replacement, Failed Septic System replacement, heating system replacement, failing electrical and plumbing, siding and windows that have lost their integrity to keep the elements out. If a home is built prior to 1978 and children under six years of age live in it a Lead Paint inspection may be required.
PROGRAM TECHNICAL ASSISTANCE:
The P.A.L.S. Program provides the services of a construction consultant who inspects the property and provides specifications and estimates for the repair(s). The Program also provides licensed General Contractors to bid and complete construction work outlined in the "Work Write Up". Once a project is under construction, the consultant, and the TRI Program Manager, or their designee will inspect the ongoing work through the completion of the construction.
PROGRAM PRIORITIES:
Once accepted into the Program, each unit in which an income eligible homeowner resides will be inspected and ranked against the other applications in process, according to need. In an emergency situation (e.g. failed heating system in winter or failed Septic system constituting a health hazard), the eligible applicant will become a priority so that critical needs can be corrected. These steps will assure that the Program will address the neediest properties.
On occasion, the P.A.L.S. Program must reject applications despite the presence of eligible work. Reasons for ineligibility may include: lack of program funds; property repairs in excess of program budget; ineligible repairs, required rehab exceeds program limitations, property title issues; ineligible tenants; or other factors that suggest the borrower may be unable to comply with the terms of the conditions of the program.