Before beginning repair and upgrade of your home, it is important for you to understand the procedures that must be followed to achieve quality rehabilitation work. Study the following steps carefully. The more accurate the information you are able to provide us in the beginning, the easier the initial process will be.
1. Application - All homeowners interested in applying for a housing rehabilitation loan must complete an application form. Some questions on the application will be of a personal nature; this information will be treated as confidential. Some of the information will be verified.
The application must include all documentation and information requested. You will then be notified of your eligibility status as soon as possible following our receipt of your application. If you need assistance in completing the application, please call our office at 541-758-2616.
2. Determining Rehabilitation Work to be Done - After your eligibility has been determined, our Rehabilitation Coordinator will schedule an inspection of your property. The Coordinator will prepare an Inspection Report/Bid Form listing all the repairs to be done to your home. The repair items shall be made in the following order: building code violations and health-and-safety concerns, major repairs, energy conservation, and general improvements. The Inspection Report/Bid Form will be the basis for the work to be done and will be given to contractors of your choice to solicit competitive bids.
3. Contractor Selection - You must receive bids from at least two contractors on your rehabilitation project. The Housing Rehabilitation Program maintains a list of contractors who perform rehabilitation work. This list will be provided to you. This list is not a recommendation or endorsement of these contractors by the Housing Rehabilitation Program. All contractors who are licensed, bonded, and registered in the state of Oregon may be eligible to participate in the program.
We emphasize that you may wish to investigate the contractor(s) that you are considering to do your work. Most contractors will furnish references. The State of Oregon Construction Contractors Board in Salem at 503-378-4621 will provide you with any complaints or pending action against a contractor’s bond. Check with the Better Business Bureau in Portland regarding consumer complaints by calling 503-212-3022. Once bids are received, the Coordinator will discuss them with you. You will then select the contractor with whom you wish to work.
4. Loan Approval - After all your financial data has been verified, the Rehab Finance Specialist will notify you regarding the status of your application. If your loan is approved, your loan closing will be scheduled once you have selected a contractor.
5. Loan Closing - To finalize your loan and before any work commences, a loan closing will be held at your home. You will be asked to sign a Note and Trust Deed and related documents for the loan amount (the bid amount, plus fees charged by the title company). The Trust Deed will be recorded, and copies of all the documents will be furnished to you. The Coordinator and selected contractor will arrive following the loan closing to review the items on the Bid Form and sign the Construction Contract and related documents.
6. Fire Insurance - You are required to carry fire insurance coverage on the property until the loan is paid off. Your insurance agent will be asked to forward a copy of your policy containing a lender’s loss payable to Community Housing Services.
7. Contractor Payments - Partial payments or progress payments of up to 90 percent of the contract amount may be made to the contractor (10 percent will be held back until the final payment). The contractor must request an inspection of the work for which he or she wants payment and will be paid for the percentage satisfactorily completed and approved for payment by you and the Coordinator.
8. Final Inspection - After the Rehab work has been completed, the contractor will arrange for a final inspection with the Coordinator. When you and the Coordinator determine that the project has been satisfactorily completed, the contractor will be paid in full.
For more information about the steps you take to receive Housing Rehabilitation services, contact: