Housing Rehabilitation

Housing Rehabilitation Programs

Housing Rehab

The City of Norman's Housing Rehabilitation Programs are funded by the U.S. Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG) program and the HOME program. These programs have funded over $4,000,000 of rehabilitation work in Norman since 1977. These programs offered are Deferred Payment Loan for Rehabilitation, a Deferred payment Loan for Emergency Repair, and a Deferred Payment Loan for Accessibility Modifications; a Grant for Renter-Occupied Accessibility Modifications or Non-Profit Agency Accessibility Modifications. An applicant must meet the income guidelines for that program as well as other qualifications specific to each particular program.

Rehabilitation Deferred Payment Loan (DPL)

The purpose of the Rehabilitation DPL is to bring existing owner occupied housing up to at least the minimum standards established by the Federal Government and the City of Norman. This project operates from a waiting list of applicants. To be placed on the waiting list, an applicant must have lived in the home for a minimum of one year, be at or below 50% of the median income, not have over $25,000 in the form of cash, savings, or CD's,etc., and the home must not be located within the 100 year flood plain.Mobile homes are not eligible.

When an applicant reaches the top of the list, their dwelling is inspected to determine what repairs are necessary. It must be possible to correct all of the code violations found in a structure with the available budget before a project may be undertaken. Once the scope of the project is established, contract specifications are prepared and sent out to bid. Upon acceptance of a bid, City staff administers a contract between the homeowner and the contractor, offering technical assistance and project management for the life of the project. Items which may be addressed during the rehabilitation include plumbing, electrical, and mechanical systems, roofing, and items relating to maintaining proper health, safety, and sanitation of the occupants.


The terms of the Deferred Payment Loan (DPL) are a four year mortgage with 0% interest and forgiven at the rate of 25% per year so long as the applicant remains the owner of the property. This means that the owner pay nothing for the cost of the repairs unless they sell the property within the four years of the mortgage. If they do sell the property within that four years the property owner will owe a pro-rated portion of the cost of the rehabilitation.


Emergency Repair Deferred Payment Loan (DPL)

The Emergency Repair Deferred Payment Loan Program is designed to address an area of urgent need which directly affects the immediate health, safety, or sanitation of the occupants of the structure. Typical projects are replacement of the roof, HVAC system, water heater, sewer line, etc. The terms of the ER Program are the same as the qualifications for the Rehabilitation Program, except income is based upon the 80% or below the median income limit.


Accessibility Modification Projects

These projects may be either owner-occupied or rental properties. Income is based on 80% of the median figure for the tenant or owner occupant. Typical projects include ramps, widening of doorways, and installation or grab bars and hand rails.Also available is a program for Non-Profit Agencies needing accessibility modifications.


                                        50% Median                                   80% Median(ER/Accessibility/Exterior Property)

1 PERSON                      $26,050                                        $41,650

2 PERSONS                    $29,800                                        $47,600

3 PERSONS                    $33,500                                        $53,550

4 PERSONS                    $37,200                                        $59,500

5 PERSONS                    $40,200                                        $64,300

6 PERSONS                    $43,200                                        $69,050

7 PERSONS                    $46,150                                        $73,800

8 PERSONS                    $49,150                                        $78,550


For each person in excess of eight, 8% of the four-person base should be added to the eight-person income limit. (E.g., the nine-person limit equals 140% [132+8] of the relevant four-person income limit). All limits are rounded to the nearest $50.


50% Median is the figure used for "low-income" when using the terminology of "low-to-moderate income." When using terminology of "very-low income" versus "low-income" 50% of the median is the "very-low income" category.

80% Median is the figure used for "moderate-income" when using the terminology of "low-to-moderate income." When using terminology of "very-low income" versus "low-income", 80% of the median is the "low-income category.

SOURCE: Department of Housing and Urban Development


Frequently Asked Questions

How much is this going to cost me?

There is no cost of the rehabilitation work done to your home as long as you abide by the terms of the Deferred Payment Mortgage. The owner must allow the Contractor to use basic facilities such as electricity and water during the construction process. However, in certain instances the cost of rehabilitation exceeds the allowable funding level. In this case the owner may be required to subsidize the project either by paying the difference or by reducing the contract cost by performing some items themselves as their ability allows. General property improvements such as installation of dishwasher, etc. are not eligible items but the owner has the option of providing additional funding to have these items done in conjunction with the rehabilitation of their property.

What if I need to sell my home before the four year mortgage is released?

The mortgage is prorated daily and the balance may be paid at any time.

Can I stay in my home while the work is being done?

Most homeowners remain in their home while the rehabilitation project is being done but you should expect the inconveniences of construction such as dust, noise, paint smells, and the like. Although, it may become necessary for you to be temporarily relocated from your home if it is determined that lead-based paint surfaces will be disturbed during the course of the work. In the event that temporary relocation is necessary, you are encouraged to seek out relatives or family friends to stay with. If this is not possible the City of Norman will provide reasonable accommodations for the necessary time period.

Who does the work and is it guaranteed?

The City of Norman Housing Rehabilitation Office maintains an approved bidders list of General Contractors. All Contractors maintain current Workers Compensation as well as General Liability Insurance and have been screened pertaining to quality of work and credit worthiness.

How much may be spent on my home?

Rehabilitation Project budgets are limited to $25,000 maximum.  If within the past year a property received any funds from the the City of Norman, then the amount of funds previously received is deducted from the maximum amount in order to calculate the budget for the Rehabilitation Project.

For example:

A home previously received a $4,000 Emergency Repair Project within the past 12 months. The allowable budget for the Rehabilitation Project would therefore be $25,000 less $4,000 = $21,000 budget.

For more information on the Housing Rehabilitation Program, please call 405-366-5324