Homeowner Rehabilitation

The Housing Rehabilitation Program provides a deferred-payment, zero interest loan to repair owner-occupied housing.  “Deferred Payment” means that re-payment is not required until the property is sold or the title is transferred, provided that all program requirements are met.  When the property is sold, the loan is repaid in full. Rental properties are also eligible under different terms.  These rehab loans can be used to perform a variety of home repairs including roofs, wiring, plumbing, windows, insulation, septic systems, floor repairs, and more.  To be eligible, household income must be less than  80-percent of the area median income. See the income requirements below for current maximum income levels.  Properties must also be located within certain target areas in Thurston County.   Loans are secured by a Deed of Trust and a Promissory Note.  The Housing Rehab Program is funded by a Community Development Block Grant through the Washington State Department of Commerce.


Eligible Areas

The Housing Rehabilitation Program is now available in all areas of Thurston County in Washington State except for properties within the city limits of Olympia. If your property is within the city limits of Olympia, please call 753-8436 for information on Olympia’s housing rehabilitation program.

Not Sure if your house is within the eligible area?

Please call us at (360) 753-8292 and we would be happy to check your address.


Income Eligibility

For owner-occupied projects, household gross annual income must be less than or equal to 80% of the Thurston County median income (see chart below). “Household income” includes income from all adult members of the household. If you are self-employed with an income that varies from month to month, we will typically look at the average for the last two years to determine income eligibility.

For rental projects, the income guidelines apply to the tenants household income and not the owner’s income. The same maximum income levels for owner-occupied projects apply to the tenant’s income for rental projects (see chart below). The property must be rented or leased to income-eligible tenants until the loan is repaid.

Income Eligibility Chart2017
Household Size:12345678
Maximum Annual Income:$42,750$48,850$54,950$61,050$65,950$70,850$75,750$80,600


Property Eligibility

To be eligible to receive a housing rehabilitation loan, the property must meet these requirements:

  • The title to the property must be in the name of the person(s) applying for the loan. Further, the title must be free of any liens or judgments that would jeopardize the housing rehab loan.
  • Property taxes must be current.
  • The property must be in compliance with local zoning ordinances for residential use.
  • The property must be located within a currently eligible area.
  • The property to be repaired must be a permanent, habitable structure that is economically feasible to rehabilitate.
  • The property must have at least one deficiency that presents a threat to the health and safety of the occupants, OR that significantly contributes to neighborhood blight, OR that significantly reduces the economic life expectancy of the home.
  • Stick-framed homes, mobile homes, and multi-family properties are all eligible.

Loan Terms

Maximum Loan Amounts

The following maximum loan amounts are maximum average loan amounts. Higher loan amounts may be approved in certain circumstances where there is a great threat to health and safety. For rental properties, these maximum loan amounts apply to each rental unit.

  • Stick-framed houses: $19,000.00
  • Mobile homes: $14,000.00

Repayment Terms:

Owner-Occupied Projects: Loans are zero-interest, deferred payment with no payments due until the home is sold, or the title is transferred, or if there is a default in the loan agreement. When the home is sold or the title is transferred, the loan is repaid in full.

Rental Projects: Loans are amortized with an interest rate of five percent and a maximum term of 20 years. Minimum monthly payment of $75.00 is required, however higher payments may be required to amortize the loan within the maximum 20 year term. For the life of the loan, owners are required to rent or lease the property to low- to moderate-income tenants. See income eligibility for income requirements.

Loan Requirements:

  • For the duration of the loan, owners are required to maintain their property to acceptable community standards.
  • Prior to the approval of any loan, all junk, trash, or other items creating blight must be removed from the outside of the premises.
  • Owners are required to maintain property insurance for the improved value of the property until the loan is repaid.
  • Improvements to the outside of the property will be emphasized to provide an improved visual impact on the neighborhood.

Other Program Requirements:

For more complete details of the rehabilitation loans, download the Owners Agreement to Participate for owner-occupied or rental projects. For program participants who have already received a housing rehab loan and are thinking of refinancing, download the Subordination Guidelines for further information (if your current mortgage is in first position, you will need to have the rehab loan subordinated in order for your new mortgage to be in a first-lien position as well).

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Application

The Housing Rehabilitation Program is now available in all areas of Thurston County except for properties within the city limits of Olympia. If your property is within the city limits of Olympia, please call 753-8436 for information on Olympia’s housing rehabilitation program.

To apply for the program, simply submit your pre-application by mail or at our office. This pre-application can be downloaded from the link below. You may also call or e-mail our office and request one to be sent to you.

Also available for download are Fact Sheets for both the owner-occupied and rental rehabilitation programs. The Fact Sheets give more detailed information about the rehab programs.

Get Adobe Reader - it's free!The following documents are in Adobe® PDF format. In order to view these documents you will need to have Adobe® Acrobat® Reader™ installed on your computer. To obtain a FREE copy of this software click on the Adobe® link on the left.

  • Fact Sheet: Owner-Occupied Housing Rehabilitation | 14KB | Download
  • Fact Sheet: Rental Housing Rehabilitation | 14KB | Download
  • Pre-Application: Owner-Occupied Housing Rehabilitation | 11KB | Download
  • Pre-Application: Rental Housing Rehabilitation | 11KB | Download

Homeowner Rehabilitation Program for Contractors

The Housing Authority maintains a list of contractors who are eligible to bid on housing rehab projects. If you are a general contractor interested in being placed on this bidders list, read through the Frequently Asked Questions below and then download an application.=

Once you are on the bidders list, you will receive bid invitations by e-mail for each project that becomes available. You do not have to bid on each project.

Frequently Asked Questions:

Q: How do I get on the bidders list?

A: To be placed on the bidders list, you must complete an application and meet the following requirements:

  • Contractors must be licensed as a general contractor in the state of Washington without any current claims against your bond.
  • Be a firm specializing in remodeling that has been in business under the same name and ownership for at least two years.
  • Be lien-free from any previous work performed.
  • See the application package for additional requirements.

Download Contractor Application:

Get Adobe Reader - it's free!This download is in Adobe® PDF format. In order to download and print out the application, you will need to have Adobe® Acrobat® Reader™ installed on your computer. To obtain a FREE copy of this software click on the Adobe® link on the left. Once you have downloaded the application, print it out on your printer and return the completed application to our office by mail or in person.

Q: How do I bid on jobs?

A: Once you have been accepted to the bidders list, you will receive bid invitations by e-mail for each project that goes out to bid. Bid forms and work specifications for each project will be attached to the e-mail bid invitation. If you want to bid on a project, you will be responsible for calling the homeowner and making an appointment to inspect the site. We generally do not schedule group walk-throughs on projects. It is very important that you introduce yourself and your company to the homeowner, and to answer any questions that they might have. A bid due date will be listed on the bid specifications. For your bid to be considered, it must be submitted to our office by the bid due date and time. We cannot accept bids by fax, e-mail or by telephone. Bids are opened publicly at our office immediately after the bids are due. If you are mailing your bid, you must allow adequate time for the bid to reach our office.

Q: How are bids awarded?

A: After the bids are received, we will add a small percentage on to the second-lowest responsible bidder. This establishes a maximum bid amount. The homeowner can then select any bid that is less than the maximum bid amount. At a minimum, the homeowner can select either the lowest- or second-lowest bidder. If the bids are grouped closely together in price, the homeowner can sometimes select a bid that is higher than the second-lowest bid. It is very important to understand that the homeowner selects their contractor from the eligible bidders. The Housing Authority does not select the contractor.

Q: How is the contract process handled?

A: Once you have been awarded the bid, the Housing Authority will prepare the Construction Contract using our standard form contract. The Contract will be between you and the homeowner. The Housing Authority is named in the Contract as the homeowner’s technical consultant. It is important to understand that you will be working for the homeowner and not the Housing Authority. The Contract is signed by the contractor, homeowner and the Housing Authority at a pre-construction conference.

Q: How do I get paid?

A: Complete payment terms are specified in the Construction Contract. During the project, you will be entitled to a maximum of two progress payments in addition to the final payment. The project must be at least 30% complete before you are eligible for the first progress payment. Additionally, we cannot pay more than 85% of the contract until the project is substantially complete. Payments are issued by the Housing Authority and are made payable to the contractor and the homeowner. The homeowner must endorse each progress payment made to the contractor. Prior to receiving the final payment, the contractor must sign a lien release form provided by the Housing Authority. To receive a progress or final payment, contractors submit an invoice to our office. Invoices received by the 1st of the month will be paid by the 15th. Invoices received by the 15th are paid by the last day of the month.

Q: What role does the Housing Authority play?

A: The Housing Authority performs the following duties during the construction phase of each project:

  • Prepare work specifications (also known as the Proposed Scope of Work) and the bidding documents.
  • Put the project out to bid and award the Contract based on the homeowner’s bid selection.
  • Prepare Contract documents and conduct the pre-construction conference.
  • Inspect the project during construction to assure that the work is performed in accordance to the work specifications. These inspections are in addition to the inspections that the building department will perform for building code conformance.
  • Issue payments to the contractor according to the terms of Contract.
  • Act as the homeowner’s technical consultant and assist with negotiating any Contract disputes.

Q: Do I need a payment or performance bond?
A: The only bond required for performing work under this program is the minimum bond requirement for licensing as a General Contractor in the state of Washington. We do not have any additional payment or performance bond requirements for the Housing Rehabilitation Program.

Q: Can subcontractors get on the bidders list?

A: The bidders list for this program is for General Contractors only. We do not maintain a bidders list for subcontractors.