State College Borough Home Rehabilitation Program
243 S. Allen Street, State College, PA 16801 814-278-4701
814-234-7197 (fax) 814-234-7110 (TDD)
WHAT IS THE HOMEOWNER REHABILITATION ASSISTANCE PROGRAM?
The Rehabilitation Assistance program provides technical and financial assistance to homeowners in the Borough to make needed home repairs and improvements. The Borough’s Office of Planning and Community Development administer the Program. Funds are provided from Federal CDBG and HOME grants received by the Borough.
What Improvements are Permitted?
The Borough will meet with you to discuss the repairs that are needed and an inspection will be conducted to identify code deficiencies. The type improvements approved will be based on the following priorities:
1st Priority: correct code deficiencies.
2nd Priority: energy conservation improvements; removal of barriers to the
handicapped; and, if applicable alterations of the interior to alleviate overcrowding.
3rd Priority: housing components not deemed to be a violation of code, but if not repaired or replaced soon are
likely to fail or deteriorate. (Examples: roofs, electrical wiring, storm drainage systems, plumbing,
exterior surfaces, etc.)
4th Priority: if funds remain after priorities 1-3 are addressed, other non-luxury improvements may be completed.
What Form of Assistance is Available?
The Borough will provide up to $20,000, as a no-interest loan, which will be forgiven if the
property is not sold or transferred for at least 8 years after the rehabilitation is completed.
There must be a minimum of $1,000 in code deficiencies that need correcting for assistance to be provided.Up to $10,000 is available in the form of a grant to complete lead reduction work.The property must remain the applicant’s primary residence during this time. If the property is sold, or no longer is the owners’ primary residence in the first 3 years after rehab completed, 100% repayment is required. If the property is sold, or no longer the owner’s primary residence during years 4 through 8, 20% of the loan will be forgiven per year. The Borough will enforce this repayment policy through the recording of a lien against the property.In consideration of the loan, the homeowner agrees to grant the Borough a Right of First Refusal for this loan period. This stipulation is used in our housing programs since it gives the Borough the opportunity to acquire an assisted property in order to increase the number of affordable homes in the Borough for future low-, moderate- and middle-income families.
