TOWNS OF WARWICK (Lead), 
LEVERETT, SHUTESBURY AND WHATELY
PUBLIC HEARING NOTICE
Monday, October 25, 2010 at 5:45 pm
Town of Warwick Town Hall Meeting Room
12 Athol Road, Warwick, MA

FY 2009 HOUSING REHABILITATION PROGRAM 

PROGRAM AMENDMENT INFORMATIONAL SHEET


The towns of Warwick (lead), Leverett, Shutesbury and Whately
Housing Rehabilitation Program are proposing to submit a program
amendment to the Department of Housing and Community Development
(DHCD) for a change to the FY2009 Warwick Four-Town housing rehab
program's financial mechanism in order to help ease the economic
burden to low and moderate income housing rehabilitation applicants
of the four-town region.

 Presently, the program offers a financial mechanism of a full deferred
payment loan at 0% interest which is to be paid back when the property
is sold or transferred. 

The proposed changes to the existing FY2009 housing rehabilitation
financial mechanism, which would be submitted to the Department of
Housing and Community Development (DHCD)/Massachusetts Community
Development Fund for approval is outlined as follows:

Allow one-half of the loan to be discharged after 15 years and if sold
or transferred prior to the 15 years the payback would be prorated at 0%
interest otherwise it would be discharged on the 15th year anniversary
date of the loan The other half of the loan would be a full deferred
payment loan at 0% interest which would be paid back when the property
is sold or transferred

EXAMPLE:  Total amount of the Housing Rehabilitation Loan is $35,000. 
One-half or $17,500 would be recorded as a 15-year declining loan
discharged at the end of 15 years, unless the property is sold or
transferred prior to the 15 years, then the payback would be prorated at
0% interest; and, the other $17,500 would remain recorded as a 0%
deferred payment loan until sale or transfer of the property.