PDC & Community News

Governor Edward G. Rendell Announced A First-of-its-Kind Program

On September 14, Governor Edward G. Rendell announced a first-of-its-kind program that will help many Pennsylvania homeowners repair and renovate their residences and avoid dangerous predatory lending practices. The Pennsylvania Housing Finance Agency's new Keystone Renovate and Repair Loan Program will give Pennsylvanians a new option to finance home improvements in a responsible manner. The program will offer borrowers fixed, below-market-rate loans for home renovation and repair projects, along with guidance on what repairs should be made, how to select a contractor, and how to tell if the work was done properly. Keystone Renovate and Repair will be administered by PHFA in cooperation with local agencies, such as county housing and redevelopment authorities, community development corporations, municipalities, lenders, and other non-profit organizations with related experience. Through PHFA-approved partners-or local program administrators-homeowners may apply for a loan of up to $35,000, which is payable over 10, 15 or 20 years. The applicant's household income may not exceed 150 percent of the area median. In addition to renovating and repair work, loans may also be used to convert multi-unit properties back to single-family residences. Applicants must live in the home for which the loan is intended, and must not owe any past-due property taxes. Including Renovate and Repair financing, loans against the property cannot exceed 120 percent of the home's value. PHFA expects the first loan closings under the program to begin in November. For more information on the Keystone Renovate and Repair Loan Program, and to inquire about the availability of local program administrators in specific areas, call the Pennsylvania Housing Finance Agency at (800) 822-1174.