Homeowners in Hazelwood and throughout the City of Pittsburgh can fix-up their homes with low interest loans and grant money from the Urban Redevelopment Authority of Pittsburgh. The URA has two home improvement loan programs for City of Pittsburgh homeowners. Both programs offer below market interest rates and excellent incentives.

The Home Improvement Loan Program (HILP) is an FHA insured home improvement loan currently with a fixed interest rate of 5.99% and a 20-year term. With a maximum loan amount of $25,000 and no equity requirement, HILP offers homeowners an affordable way to make the improvements they want or need. For example, if you borrow $25,000 your monthly payment will be $178.96, fixed for 20 years.

All properties must be owner occupied and contain no more than 4 units. Homeowners are permitted to do their own work and although income limits do apply in some program areas, there are no income limits in targeted areas. Parts of Hazelwood are in a targeted area. To find out if your home is in a targeted area you can call the URA at 412-255-6672.

In the HILP program, the borrower is responsible for deciding when to pay the contractor as well as monitoring the quality of workmanship. The URA’s involvement in the rehabilitation is minimal and leaves the homeowner in control, much the same as a conventional home improvement loan. If you are interested in the HILP loan, you can apply at PNC Bank, Dollar Bank, National City Bank or Parkvale Savings.

The Pittsburgh Home Rehabilitation Program (PHRP) is the URA’s other home improvement loan. This program provides the homeowner with more construction management assistance throughout the loan process as well as some additional financing through grant funds for eligible improvements. This program is only available through National City Bank.

The PHRP loan has a 2.5% fixed interest rate with a maximum loan term of 20 years and a maximum loan amount of $20,000 and like HILP, there is no equity requirement. All properties under the PHRP program must be owner occupied and have 2 or less units. Income limits do apply to all borrowers.

Borrowers can receive grant funds under this loan program. Up to $2,000 is available for exterior improvements, up to $800 is available to repair or replace public sidewalks and up to $3,000 is available to make a home accessible to persons with disabilities. Also, grants are available to eliminate lead based-paint hazards in the home.

The URA will provide assistance in every step of rehabilitation. A construction advisor is assigned to each loan and will work with the homeowner to finalize a work write-up and secure a contractor if the homeowner does not already have one in mind. Homeowners are not permitted to do their own work under the PHRP program. The construction advisor will inspect all work and meet with the homeowner and contractor before each payment. The contractor receives payments only after the homeowner approves of the work in place.

Another advantage of the PHRP loan is the deferral. Depending on the loan amount, a portion the loan, up to a maximum of $2,000, is not paid back until the home is sold therefore lowering the monthly payment amount.

For more information about these and other loan programs offered by the Urban Redevelopment Authority of Pittsburgh please call 412-255-6666 or click here to visit us on the web at www.ura.org.