CHIP Guidelines

Learn more about the guidelines of the Community Housing Improvement Program

Income Limits
Household income are determined by the total Gross income for the last completed preceding year reported on federal tax forms by all household members, 18 years of age or older, living in the home. Applicable forms include IRS 1040, W-2’s, SSA 1099 and others. Proof of current income must be provided to ensure eligibility at the time of application and to determine an income projection for the next 12 months.

*Applicants whose total net assets equal an amount greater than $100,000 are not eligible. Items considered net assets include but are not limited to: inheritances, personal valuables, collectables, and payments for mineral rights.

Owner Rehabilitation Program
This program provides deferred loans in an amount up to but not exceeding $35,000 to low to moderate income homeowners for the purpose of eliminating existing substandard housing conditions.

Eligible applicants must agree to:

1. Occupy the home for at least 5 years after the rehabilitation.
2. Reimburse the program 15% of the total grant when the home is sold or vacated after 5 years.
3. Reimburse the program on a sliding scale up to the total amount of the grant if the home is sold or vacated before the 5 year anniversary.
4. Be willing and able to allow the administrating agency to retain a mortgage for the property.
5. Be willing and able to reimburse the program as agreed if the home is sold or transferred as part of the current owner’s estate.

Applicants interested in participating in the Owner Rehabilitation Program must complete an application and call this office to schedule an appointment to submit their completed application. At that time, the completed application and all necessary documents will be verified to determine eligibility for the program. You must have a completed application and all necessary documents with you at this time or your application will be denied.

The applicant cannot be delinquent or in default on present mortgage payment, homeowners insurance payments, property taxes, assessments or utilities.

Any changes in the household, such as changes in income, in employment or in number of persons in the household, which occur after the verification process but before the program contact is signed will result in a review of the applicant’s eligibility.

After completing this verification process, a rehab specialist will visit your home to perform a walk-thru inspection to determine your housing needs.

Eligible applicants will be processed according to the program’s priority rating system, designed to benefit the most needy of the current eligible applicants. The system is based upon the applicant’s income and quality of life issues, which exist in the housing unit.

Following the notification of acceptance in the program, the grantee is responsible for contacting three local contractors from the Approved Contractor List. The lowest bidder will be awarded the contract and approval to begin the repairs to the home.

Eligible homes must meet the Residential Rehab Standards at the completion of the project without exceeding the $30,000 program limit. If the condition of the home cannot be successfully repaired or renovated to meet these standards without exceeding this maximum, the implementing agency will enforce a “walk-away policy” and the home will be considered ineligible.

Owner Home Repairs
Applicants interested in participating in the Home Repair program must complete an application and call this office to schedule an appointment to submit their completed application. At that time, the completed application and all necessary documents will be verified to determine eligibility for the program. You must have a completed application and all necessary documents with you at this time or your application will be denied. Home Repair applications are considered on a first-come first-served basis.

The applicant cannot be delinquent or in default on present mortgage payment, homeowners’ insurance payments, property taxes, assessments or utilities.

Homes purchased under land contract do not qualify unless steps have been taken to legally record the land contract agreement.

Eligible projects must not exceed the $5,000 program limit. If the condition of the home cannot be successfully repaired or renovated without exceeding this maximum, the implementing agency will enforce a “walk-away policy” and the home will be considered ineligible.

Rental Home Repair
Property Owners interested in participating in the Home Repair Program for their rental unit must complete an application and call this office to schedule an appointment to submit their completed application. The applicant (Property Owner) is responsible for assuring his/her tenant(s) schedule an appointment to come to the CHIP office to submit an application and all necessary documents to be verified eligibility for the program. You must have a completed application and all necessary documents with you at this time or your application will be denied. Rental Home Repair applications are considered on a first come first served basis.  The property owner is required to contribute half the cost of repair. There is a mortgage placed on the property for 2 years for the 100% of the funds.  100% is forgive at the end of the 2 years. Rents are limited for that period and cannot exceed Fair Market Rents.

The applicant cannot be delinquent or in default on present mortgage payment, homeowner’s insurance payments, property taxes, assessments or utilities.

Homes purchased under land contract do not qualify unless steps have been taken to legally record the land contract agreement.

Conflict of Interest Resolution
If a conflict of interest should arise involving an applicant or beneficiary seeking assistance, the case will be reviewed at the request of any involved party. A determination will be made in an effort to be fair to all parties.

Guidelines determine these possible conflict of interest examples:
1.    The applicant is an employee of the City of Shelby.
2.    The applicant is an employee of the Regional Planning office.
3.    The applicant is an employee of the office contracted to administer the grant program.

This information was prepared in an effort to review the available programs and basic guidelines for those programs. Written procedures set forth the exact criteria used to determine eligibility for participation in these programs. If you have any questions about the programs outlined, please contact the City of Shelby CHIP Office at (419) 347-6310 or the Ohio Regional Development Corp. at (740) 622-0529.