Home Purchase Rehabilitation Pilot Program
About the Program
The Home Purchase Rehabilitation Pilot Program provides applicants under the DHCD’s suite of Home Purchase Assistance Programs an additional option for becoming first-time homebuyers.
The purpose of the program is to allow first-time homebuyers in the District to purchase homes that require limited repairs to address health, safety and building code violations. This program enables the use of the Federal Housing Administration’s (FHA) 203(k) Streamline Rehabilitation Program as a first trust lending product, in conjunction with an HPAP or other DHCD purchase assistance second trust loans. Applicants will receive a combined purchase money loan for acquisition and repairs (limited to the 203(k) guidelines) from the first trust lender. The HPAP or other DHCD program loans will continue to be a second trust loan for gap financing and closing cost assistance. The applicant must meet all DHCD eligibility requirements.
Rehabilitation Loan Amount
The minimum rehabilitation loan for the FHA 203(k) streamline is $5,000 and the maximum is $35,000. The limited repairs must be completed within six (6) months of the loan closing date when a Home Quality Inspection (HQI) is due.
The applicant must apply for HPAP with a Community Based Organization (CBO) and attend general HPAP training. The applicant must also attend a separate mandatory 203(k) streamline class. HPAP applicants who have received a Notice of Eligibility from the Greater Washington Urban League are eligible for the pilot program.
The applicant must select their FHA 203(k) lender, general contractors, and an FHA 203(k) consultant to conduct scopes of work write ups and periodic inspections of the rehabilitation work prior to funding draws.
Eligible rehabilitation repairs with 203(k) loans include:
- Repair/replacement of roofs, gutters, and downspouts
- Repair/replacement/upgrade of existing HVAC systems
- Repair/replacement/upgrade of plumbing and electrical systems
- Repair/replacement of flooring
- Minor remodeling of kitchen that does not involve structural repair
- Painting, both interior and exterior
- Weatherization, including storm windows and doors, insulation, weather stripping, etc.
- Accessibility improvements for persons with disabilities
- Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
- Basement finishing and remodeling that does not involve structural repairs
- Lead-based stabilization or abatement of lead-based hazards
- Repair/replace existing exterior decks, patios, or porches
- Window and door replacements and exterior wall residing
- Septic system repair or replacement
Ineligible rehabilitation repairs with 203(k) loans include:
- Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall
- New constructions to include room additions
- Repair of structural damage
- Repairs requiring detailed drawings or architectural exhibits
- Landscaping or similar site amenity improvements
- Any repair or improvement requiring a work schedule longer than 6 months
- Rehabilitation activities that require more than two (2) payments per specialized contractor
How to Apply
DHCD generally processes applications on a “first-come first served” basis. Please contact one of the community-based housing counseling managers at (202) 442-7200.
If you are interested in applying for the Home Purchase Rehabilitation Pilot Program for first time homebuyers using HPAP and or other DHCD program loans, please contact one of the following Community Based Organizations.
Housing Counseling Services
2410 17th Street, NW
Washington, DC 20009
Latino Economic Development Corporation
2316 18th Street NW
Washington, DC 20009
3939 South Capitol Street, SW
Washington, DC 20032
***University Legal Services - DHCD Housing Resource Center
1800 Martin Luther King, Jr. Ave., SE, 1st Floor
Washington, DC 20020
***University Legal Services
220 I Street, NE, Suite 130
Washington, DC 20002
***University Legal Services - Far NE
Lloyd E. Smith Center
3939 Benning Road, NE
Washington, DC 20019
***The Home Purchase Rehabilitation Pilot Program training will be offered at these locations.