Fargo Housing Rehab
The goal of the Fargo Housing Rehab Program is to preserve existing housing stock in the City’s older neighborhoods by providing assistance to low-to-moderate income homeowners. With a little financial help, these homeowners can make a big contribution to the overall health of the neighborhood in which they live. Housing rehab helps homeowners maintain their residences as safe, sanitary dwellings that meet local housing codes and helps prevent houses from becoming dilapidated nuisance properties.
The City of Fargo has been funding housing rehab projects since 1975. In that time, the program has helped over 857 homeowners make more than $10 million in home improvements. Local housing rehab is funded with Community Development Block Grant and HOME funds, received by the City of Fargo from the Department of Housing and Urban Development (HUD). As such, all projects are subject to federal regulations and must meet both HUD and local codes by the time the work is completed.
The following factors are considered when determining eligibility for Fargo Housing Rehab:
Income The combined gross annual income of all household members over age 18 must be below the HUD income limits as shown below. Income calculations are based on a projection of your next year’s annual household income. These limits are adjusted annually.
80% of Area Median Income:
1 person household $42,750
2 person household $48,850
3 person household $54,950
4 person household $61,050
5 person household $65,950
6 person household $70,850
7 person household $75,750
8 person household $80,600
Property The property must also meet certain conditions:
- Be located in the City of Fargo
- Be a single-family residence (this includes manufactured homes permanently attached to real property)
- Be at least 40 years old
- Be assessed at or below $175,000
- Conform to and comply with all current zoning ordinances
- Not be located in the 100-year floodplain
- Remain owner-occupied
Assets Household assets cannot exceed $30,000. This does not include the property to be rehabilitated. It does include checking accounts, savings accounts, certificates of deposit, stocks, bonds, other real estate and business assets.
Use of Funds These funds may be used to correct existing or potential code deficiencies, structural deficiencies, weatherization, and general improvements. This is not a home maintenance program. All projects must address some code deficiency. Exterior work can be included in a project when such deterioration is serious enough to warrant non-compliance with housing and building codes. All lead paint issues are considered “code deficiencies” and must be addressed.
Examples of Work The funds can be used for roof replacement, furnace replacement, electrical upgrade, sewer/water hook-ups, improvements for people with disabilities, etc.
Level of Assistance Rehab assistance will be available as a 0% interest deferred payment loan, forgiven after 10 years. This means that the assistance must be repaid only if the property is sold within 10 years of completing the home rehabilitation work.
If the property is sold within the first 3 years, 100% of the loan must be repaid. 10% of the loan will be forgiven if the home is sold in the 4th year, and an additional 15% will be forgiven each year thereafter (years 5-10).
Total assistance cannot exceed $24,500 and will be determined based on each property’s needs.
Lead Paint All homes built prior to 1978 will be subject to a lead paint inspection and further lead paint testing, if determined to be necessary. Lead hazards that are identified must be corrected and the contractor completing the corrections must employ workers that are trained in lead safe work practices and hold a current North Dakota Health Department certification. The rehab office will provide a list of qualified contractors.
How to Apply The Housing Rehab application is available online or call (701) 241-1474 to have one mailed to you.
Additional information on the program is available from Bob Miller at 241-1474.