Housing Rehabilitation and Improvement Program (HO Rehab)
What is it?
Up to $24,999 to income qualified homeowners in the City of East Lansing to rehabilitate, improve
and weatherize their homes.
Eligible improvements include:
_ Code violations;
_ Weatherization (insulation, roofing, windows to improve the energy efficiency of the home);
_ Lead Based Paint hazard assessment and remediation; and
_ Barrier free and accessibility improvements.
Not all requested improvements can be made. HHP and the client will review the requests and
determine a scope of work. Code violations and LBP items will be addressed first.
Who is eligible?
_ City of East Lansing homeowner. Must live in the property and not use for rental purposes;
_ At or below 80% AMI ($52,700 for household of 4);
_ Homeowner Insurance and property taxes must be up to date and remain current;
_ Home cannot be in the floodplain;
_ Must be a single-family residence.
How does the program work?
1. Client meets with HHP to discuss the program and determine the feasibility of the project.
2. Client submits a complete application to HHP.
3. HHP determines eligibility through third-party income and asset verification.
4. Upon eligibility determination, HHP inspects the home for code violations, structural and
systems defects.
5. Based on inspection, HHP drafts a scope of work and an estimate of this work.
6. HHP and client agree on work specifications.
7. HHP releases bid package to minimum of three (3) general contractors.
8. Lowest responsible bid is chosen.
9. HHP schedules a closing for the second mortgage and note with client.
10. HHP schedules a contract conference between HHP, contractor and the client to review specs
and sign construction contract.
11. HHP manages all draws and inspections.
Funding:
The HO Rehab Program is funded by the City of East Lansing CDBG dollars. These dollars are
secured through a second mortgage (no interest, no payments) and a promissory note. These dollars
forgive at a rate of 10% per year up to a maximum of 50% forgiven. Client repays the amount due at
time of sale or transfer of the property.