Housing Enhancement Loan Program

HOUSING ENHANCEMENT LOAN PROGRAM

H.E.L.P

General Eligibility Single family, two-family, and multi-family dwellings in eligible Cuyahoga County communities.

Target Area Cities, townships or villages that have experienced average annual appreciation in residential property value of less than 2% per year (adjusted for inflation) over a fifteen-year period. The program now includes 32 municipalities.

Community Eligibility A target area community must agree to perform program monitoring for properties in that community to be eligible.

Income Limit There is no maximum income ceiling for a borrower to be eligible.

Age of Property There is no restriction based on age of the property.

Owner Occupancy Investors as well as owner-occupants are eligible. Multiple loans to non-owners may be considered commercial loans by the lender (at the lender's discretion). The Treasurer reserves the right to limit the number of loans to a given non-owner occupier.

Tax-exempt Property Property exempt from property tax is not eligible.

Market Value Limit Single family and two-family dwellings must have a market value less than $250,000. No limit for buildings with three or more units.

Use of Proceeds Proceeds of the low interest loan must be used to pay for alterations, repair, or improvement of a residence that protects or improves its basic livability and enhances the property's value. Code compliance work is permitted. Physical improvements related to condominium conversion are permitted. The participating municipality's building or planning department monitors to assure that the work is done and that its value approximates the amount of the loan.

Ineligible Uses Luxury items, such as swimming pools, hot tubs, satellite dishes, and stables are not permitted. Appliances are not permitted. New home construction and refinancing of existing loans are not permitted.

Borrower's Credit The lending institutions are solely responsible for lending criteria and loan default risk.

Minimum Loan $1500

Maximum Loan No maximum for single family or two-family dwellings. Buildings with three or more units subject to the lesser of $200,000 or $20,000 per unit.

Maximum Term Five years (as required by limits on the County Treasurer's investing authority).

Loan Subsidy The interest rate on each eligible loan will be set by the lending institution at no less than three percentage points below the rate that would otherwise apply to the borrower (including any "promotions" or "specials" offered by the lender). In return the County Treasurer will purchase a Certificate of Deposit with the lender at three percentage points below the market rate, to be based on the bond equivalent yield of the two year Treasury (regardless of the maturity of the given CD). CD purchases will be made monthly, matching the net amount of loans extended by each lending institution. CD's are collateralized according to state law.

Fees and Charges Unsecured consumer loans - $75 maximum allowed. Secured consumer loan - $175 maximum allowed, including all closing costs. Fees for commercial loans (5 or more units) may be set by the lending institution.

Application Process Applicants will apply at any branch of any eligible institution. The lending institution will pre-screen for program eligibility, and then process loan application. Approved loan is then forwarded to County Treasurer for final approval of the subsidy. Seven banks participate in the program.

Other Restrictions The borrower must be current on property tax payments.

Marketing The Treasurer's Office provides informational brochures. Lending institutions may do additional marketing. Eligible communities are encouraged to provide information to residents through housing departments, newsletters, and other methods. Both the major city newspaper and the suburban newspapers have done stories on the program, as have the several local television stations.

Current Status The program began in July of 1999. As of February 2001, $30 million in loans have been extended to almost 3000 homes.

The Treasurer's linked deposit program was developed with the help of the Gund Foundation, The First Suburbs Consortium, the Housing Policy Research Program of the Levin College of Urban Affairs at Cleveland State University, A.G. Edwards, and Calfee, Halter and Griswold, and with the support of the Cuyahoga County Board of Commissioners.

[Back to "One Tool in Revitalization of First Ring Suburbs - Cuyahoga County's Home Enhancement Loan Program (HELP)"]

Author and Copyright Information

For further information call Howard Katz, Director of Strategic Planning, at 216-443-7563 or e-mail trhek@www.cuyahoga.oh.us.

Cuyahoga County Treasurer’s Office
Room 135
1219 Ontario Street
Cleveland, Ohio 44113
216.443.7400
Fax 216.443.7463
www.cuyahoga.oh.us/treasurer

General Eligibility	Single family, two-family, and multi-family dwellings in eligible Cuyahoga County communities.
Target Area	Cities, townships or villages that have experienced average annual appreciation in residential property value of less than 2% per year (adjusted for inflation) over a fifteen-year period. The program now includes 32 municipalities.
Community Eligibility	A target area community must agree to perform program monitoring for properties in that community to be eligible.
Income Limit	There is no maximum income ceiling for a borrower to be eligible.
Age of Property	There is no restriction based on age of the property.
Owner Occupancy	Investors as well as owner-occupants are eligible. Multiple loans to non-owners may be considered commercial loans by the lender (at the lender's discretion). The Treasurer reserves the right to limit the number of loans to a given non-owner occupier.
Tax-exempt Property	Property exempt from property tax is not eligible.
Market Value Limit	Single family and two-family dwellings must have a market value less than $250,000. No limit for buildings with three or more units.
Use of Proceeds	Proceeds of the low interest loan must be used to pay for alterations, repair, or improvement of a residence that protects or improves its basic livability and enhances the property's value. Code compliance work is permitted. Physical improvements related to condominium conversion are permitted. The participating municipality's building or planning department monitors to assure that the work is done and that its value approximates the amount of the loan.
Ineligible Uses	Luxury items, such as swimming pools, hot tubs, satellite dishes, and stables are not permitted. Appliances are not permitted. New home construction and refinancing of existing loans are not permitted.
Borrower's Credit	The lending institutions are solely responsible for lending criteria and loan default risk.
Minimum Loan	$1500
Maximum Loan	No maximum for single family or two-family dwellings. Buildings with three or more units subject to the lesser of $200,000 or $20,000 per unit.
Maximum Term	Five years (as required by limits on the County Treasurer's investing authority).
Loan Subsidy	The interest rate on each eligible loan will be set by the lending institution at no less than three percentage points below the rate that would otherwise apply to the borrower (including any "promotions" or "specials" offered by the lender). In return the County Treasurer will purchase a Certificate of Deposit with the lender at three percentage points below the market rate, to be based on the bond equivalent yield of the two year Treasury (regardless of the maturity of the given CD). CD purchases will be made monthly, matching the net amount of loans extended by each lending institution. CD's are collateralized according to state law.
Fees and Charges	Unsecured consumer loans - $75 maximum allowed. Secured consumer loan - $175 maximum allowed, including all closing costs. Fees for commercial loans (5 or more units) may be set by the lending institution.
Application Process	Applicants will apply at any branch of any eligible institution. The lending institution will pre-screen for program eligibility, and then process loan application. Approved loan is then forwarded to County Treasurer for final approval of the subsidy. Seven banks participate in the program.
Other Restrictions	The borrower must be current on property tax payments.
Marketing	The Treasurer's Office provides informational brochures. Lending institutions may do additional marketing. Eligible communities are encouraged to provide information to residents through housing departments, newsletters, and other methods. Both the major city newspaper and the suburban newspapers have done stories on the program, as have the several local television stations.
Current Status	The program began in July of 1999. As of February 2001, $30 million in loans have been extended to almost 3000 homes.