What is the Housing Rehabilitation Program?

The Cary Housing Rehabilitation Program provides federal funds to assist eligible residential property owners located within the Town limits to undertake home repairs and improvements. These improvements can range from minor repairs and painting to substantial roof and structural renovations on houses that are in need.  

The goal of the program is to:
1. Preserve the affordable housing stock;
2. Provide a suitable living environment for the occupants;
3. Eliminate slum or blighting influences within a residential neighborhood.

These goals, in turn, are designed to increase the attractiveness of the neighborhood, provide safe and healthy homes for low and moderate income families, and preserve the affordable housing stock in the town.

The program is funded through the Town of Cary’s Federal Community Development Block Grant and is administered by the Town’s Planning Department. This is a multi-year grant whose funding amounts vary from year to year. 

How does the Program Work?

Eligible residential property owners within the Town limits apply for Community Development Rehabilitation assistance. Eligibility is restricted to total household incomes which do not exceed 80 percent of the area Median Income Range. This income range is determined by HUD for the Raleigh-Durham area and is adjusted every few years. The 2009 income ranges are as follows:

When an application is received, it is reviewed by the staff to determine basic eligibility for income, location, and general feasibility. An appointment is made with the owner for a preliminary inspection of the house and to determine and clarify the rehabilitation needs of the structure.

Applications are received and reviewed on a first-come, first-served basis and are compared to determine priority of the cases. Because funds are limited, applications selected must meet the objectives of the program and will be based on the greatest need, the income of the family, and the estimated cost of the rehabilitation project to determine a priority list.

When a rehabilitation application case is accepted, a qualified contractor inspects the house to write up a scope of work and a cost estimation for the items listed for repair or replacement that were identified in the preliminary inspection. After staff review, some adjustments may be made to the scope of work. A work contract is prepared to be agreed on by the owner and the contractor. The project is then advertised to be bid on by qualified contractors. The successful bidder and the owner sign a contract for the specific work items to be repaired or replaced and work begins.

Who Can Apply for Funding?

Any residential home owner who meets the income requirements and are located within the town limits can apply for rehabilitation assistance.
 
What Type of Improvements Are Eligible for Funding?

Rehabilitation improvements must be for the primary residential structure of the property.  Examples of eligible improvements include:

• Replacement or repairing of housing siding, including painting.
• Replacing or repairing doors or windows.
• Repairs or replacement of roofs, including shingles, roof vents and chimney flashings.
• Repairs or replacement of rain gutters, fascia, and soffitts.  
• Removal and prevention of crawl space mold and mildew.
• Exterior and interior caulking, sealing, insulation and weather proofing.
• Plumbing and electrical wiring to meet code requirements.
• Bathroom and kitchen facility repairs and replacements.
• Installation of ADA facilities (handrails, step ramps, etc).
• Repair or replacement of porches and decks.

Examples of ineligible activities include:            

• Alarm systems.
• New building construction or new additions.
• Any items that are not allowed by the NC State Building Code or the Town of Cary Code of  Ordinances.
• Application fees, permit fees or inspection fees.
• Non-residential structures and buildings.

Are There any Design Guidelines?

Projects must conform to the Town of Cary Land Development Ordinance (LDO), Building Code Ordinance, Minor Alterations, Community Appearance Manual, and be consistent with the overall Town and State ordinances. The Planning staff will assist applicants with these requirements at their convenience and by appointment. Incompatible features with the surrounding structures and buildings will be determined by the Town staff.

How does the Application Process Work?

First, homeowners must complete an application form [pdf ] [ html ]and submit it to the Planning Department for initial review. Applicants are encouraged to talk or meet with the Town Planning Staff so that the program requirements can be explained and to discuss the scope of the rehabilitation project. Also at this stage the preliminary eligibility for the program will also be determined (household size, combined income, location, extent of rehabilitation work, etc).

The application stage will be followed by a preliminary house inspection to determine the types and extent of needed housing repairs and replacements. The housing planning staff will then review the application and make a preliminary approval or denial for the work requests and write ups within 30 days. If approved, a professional housing contractor will inspect the house and provide a work write up and cost estimation.

If approved, the applicant will receive a notification from the Town of Cary for the specified amount of work with information on any other requirements.

The project is then bid out to independent housing contractors to perform the rehabilitation work. After contractor selection, a work contract is drawn up between the home owner and the contractor to sign. An additional rehabilitation deferred loan agreement will be drawn up between the home owner and the Town as well. As work progresses, it will be monitored by the Planning staff for compliance.

The contractor will proceed with necessary permitting and city review processes.  If the total project cost is over $2,000, the project will be subject to the requirements of the federal Davis-Bacon prevailing wage law for contractors and sub-contractors. Project cost overruns that are due to miscalculations, undiscovered construction requirements, or other justifiable reasons may be added to the overall cost of the rehabilitation project upon approval from the Planning Staff. However, the maximum overall project matching amount will still remain at $20,000. Each project will contain a 10 percent contingency line item to insure against valid cost over runs.

What Happens after a Project is selected for Funding?

Work selected for rehabilitation funds must be completed within six consecutive months (180 days) of approval of the work write up and execution of the contract unless extended by approval of the Town of Cary. The contractor is responsible for obtaining all required building permits and any other required permits for the work to be done. The contractor is responsible for conforming to all applicable safety standards and conditions. When all work is completed, the Town Permits and Inspection Department staff will inspect the work and if approved, will issue a Certificate of Occupancy.   

The homeowner/applicant must also agree to maintain the property and improvements for a five-year period. After the five-year period has elapsed and if the house is still in good repair, the deferred loan is forgiven and the funds expended become a grant.

The owner of a selected project will agree to allow the Town of Cary to promote an approved project including, but not limited to, displaying a sign at the site during and after construction and using photographs and descriptions of the project in future Town marketing materials. 

Contact

Tracy Stone-Dino, Senior Planner
Town of Cary Planning Department
P.O. Box 8005
Cary, NC 27512-8005
(919) 380-2782
tracy.stone-dino@townofcary.org