Frequently Asked Questions
Who qualifies for assistance?Click here to visit our page on qualifying
How much do I have to pay?
There are no up-front costs that applicants must pay. Any administrative costs related to a project will be paid from the project funding.
Is This a Loan or a Grant?
The answer is “Yes.” The program requires the homeowner to live in the home for five years (60 months) after the rehab project is complete. If the homeowner can meet this requirement, then over the five years (60 months) the loan becomes a grant and no repayment is required. In this situation, one sixtieth of the grant is forgiven each month during the five years that the homeowner lives in the home. However, if the homeowner moves out or sells the home during the five years, then the homeowner or the homeowner’s heirs are liable to repay a proportion of the loan with one sixtieth of the loan being forgiven for each month that the homeowner lived in the home prior to moving out or selling the home. For example: if the homeowner lives in the home for 48 months after the rehab project is complete, then 48/60 (= 4/5 = 80%) of the grant is forgiven. The homeowner would be liable to pay back 20% of project cost. If the homeowner can not afford to make the repayment, then the lien on the home requires that the 20% be repaid out of the proceeds of the sale of the home.
What work can be done?
Building code items or health and safety hazards will be addressed through this program (no remodeling). Some examples of repair work include: Repair and replacement of roofs and furnaces, Repairing electric or plumbing, Replacement of windows and doors, and General stabilization and safety improvements.
Who does the work?
Homeowners will participate in the selection of the rehab contractor. The Housing Rehab Specialist will assist in the qualification and selection of the contractor. In order to be approved, contractors must be reputable, be licensed in SD, carry adequate Workers Comp and Liability insurance and, if applicable, be certified to perform work in accordance with federal lead-based paint safe work practices.
Can I do my own work?
No. All work must be completed by a pre-approved contractor. This does not prevent the homeowner from completing work prior to receiving assistance through the Huron Housing Authority in order to reduce the total amount borrowed that is necessary for rehabilitation.
How is the contractor paid?
Contractors do not receive any up-front payments. Only work completed, and materials purchased and installed will be for. Progress and final payments come from the SD Housing Development Authority. Homeowners and the Housing Rehab Specialist must sign all pay requests.
Can I sell my property when I want?
Homeowners can may sell their property at any time; however, the loan becomes a grant at month by month for five years. Any amount of loan that has not been converted to loan must be repaid to the SD Housing Development Authority.