Housing Rehabilitation Program
Housing rehabilitation helps homeowners maintain their residences as safe, sanitary dwellings that meet local housing codes and helps prevent houses from becoming dilapidated nuisance properties.
The City of Fargo has been funding housing rehabilitation projects since 1975. In that time, the program has helped make more than $10 million in home improvements. Local housing rehabilitation is funded with Community Development Block Grant and HOME funds, received by the City of Fargo from the Department of Housing and Urban Development (HUD). As such, all projects are subject to federal regulations and must meet both HUD and local codes by the time the work is completed.
The following factors are considered when determining eligibility for the Fargo Housing Rehabilitation Program:
The combined gross annual income (before taxes and deductions) of all household members age 18 and over, must be equal to or less than the HUD income limits as shown below. Income calculations are based on a projection of your next year’s annual household income. These limits are adjusted annually.
80% of Area Median Income:
- 1 person household $47,150
- 2 person household $53,850
- 3 person household $60,600
- 4 person household $67,300
- 5 person household $72,700
- 6 person household $78,100
- 7 person household $83,500
- 8 person household $88,850
The property must also meet certain conditions:
- Be located in the city limits of Fargo
- Be a single-family residence (this includes manufactured homes permanently attached to real property)
- Be at least 40 years old
- Be assessed at or below $175,000
- Conform to and comply with all current zoning ordinances
- Not be located in the 100-year floodplain
- Remain owner-occupied
Use of Funds
These funds may be used to correct existing or potential code deficiencies, structural deficiencies, weatherization, and general improvements. This is not a home maintenance program. All projects must address some code deficiency. Exterior work can be included in a project when such deterioration is serious enough to warrant non-compliance with housing and building codes. All lead paint issues are considered “code deficiencies” and must be addressed.
Examples of Work
The funds can be used for roof replacement, furnace replacement, electrical upgrade, sewer/water hook-ups, improvements for people with disabilities, etc.
Level of Assistance
Rehabilitation assistance will be available as a 0% interest loan (mortgage) with no monthly payments, forgiven after 10 years. This means that the assistance must be repaid only if the property owners move, sell, die, or transfer their title to someone else within 10 years of completing the home rehabilitation work.
If the property is sold within the first 3 years, 100% of the loan must be repaid. 10% of the loan will be forgiven if the home is sold in the 4th year, and an additional 15% will be forgiven each year thereafter (years 5-10).
Total assistance cannot exceed $24,500 (plus the cost of lead-based paint items that must be addressed) and will be determined based on each property’s needs.
All homes built prior to 1978 will be subject to a lead paint inspection and further lead paint testing, if determined to be necessary. Lead hazards that are identified must be corrected and the contractor completing the corrections must employ workers that are trained in lead safe work practices and hold a current North Dakota Health Department certification. The rehab office will provide a list of qualified contractors.