Home Rehabilitation Loan Program for Rural Low-Income Households

Saving money for a home expense

The Home Rehabilitation Loan Program (HRLP) closed June 30, 2023. HRLP is transitioning to a grant-based program that will be introduced in early 2024. Further questions can be directed to Gerardo Gonzalez Gomez.

Commerce announces rulemaking for the Low-Income Home Rehabilitation Grant Program
Following the passage of HB 1250 in the 2023 legislative session, the former low-income revolving loan program (HRLP) is terminated as of July 1, 2023. The legislation directs Commerce to forgive all outstanding loans and initiate rulemaking to develop a new grant program established in a new section added to chapter 43.330 RCW.

The Energy division plans to complete the rulemaking for the new grant program by the end of February 2024 and filed an official notice of proposed rulemaking (CR-101) on October 20, 2023.

RCW 43.330.483 Low-income home rehabilitation grant program.

  • Subject to the availability of amounts appropriated for this specific purpose, the low-income home rehabilitation grant program is created within the department.
  • The program must include the following elements:
  • Eligible homeowners must be low–income and live in rural areas.
  • Homeowners who are seniors, persons with disabilities, families with children five years and younger, and veterans must receive priority for grants.
  • The cost of the home rehabilitation must be lesser of:
  1. 80 percent of the assessed or appraised value of the property post rehabilitation, whichever is greater; or
  2. $50,000
  • The maximum amount that may be granted under this program may not exceed the cost of the home rehabilitation as provided in (c) of this subsection.
  • The department must adopt rules for the implementation of this grant program. [2023 c 380 § 3.]

Commerce is accepting public feedback throughout this rulemaking process and will host a public workshop after draft rules are released. Please send comments to Nick Manning, Energy Division Rulemaking Coordinator, at nick.manning@commerce.wa.gov.

Previous loan program information

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  • Click on the purple house symbol for details on who to contact for information

The Home Rehabilitation Loan Program (also called Rural Rehab) funds Rehabilitation Agencies to provide deferred loans to rural, low-income households needing repairs and improvements on their primary residence to increase health, safety and durability.

Rural low-income households with income at or below 200% of the federal poverty level can get a deferred loan.

Number of People in Household

Income Maximum

   1

        $25,760

   2

        $34,840

   3

        $43,920

  4

        $53,000

   5

        $62,080

   6

        $71,160

   7

        $80,240

   8

        $89,320

For each additional person add: 

         $ 9,080

The following are Rehabilitation Agencies and counties where the program offers services:

Blue Mountain Action CouncilColumbia, Garfield, Walla Walla Counties
Olympic Community Action ProgramsClallam, Jefferson Counties
Coastal Community Action ProgramGrays Harbor, Pacific Counties
Community Action Center of Whitman CountyWhitman County

Lower Columbia Community Action Council

Rural Resources Community Action

Cowlitz, Wahkiakum Counties

Ferry, Pend Oreille, Lincoln Counties

 The Opportunity Council Whatcom, Island, San Juan Counties
Habitat for HumanitySeattle-King County
 OIC of WA Adams, Grant, part of Yakima Counties

Work on your home must be residential repairs and improvements that affect health, safe, and durability of your home. They must be essential improvements like rot removal, foundation/structural improvements, energy-related improvements, lead-based paint and asbestos work, improvements for handicapped persons, repair or replacement of major housing systems, emergency storm repairs, seismic retrofits, or radon mitigation.

1. You have to own and live in the house that is going to be repaired.
2. Your income must be at or below 200% of the federal poverty level as adjusted for family size. (see chart in answer to “Who can get a loan?” above)
3. You must be living in one of the rural areas listed above.

You will be given priority if you are a senior citizen, a person with a disability a veteran, or in a family with children five years old and younger.

If you are an eligible homeowner and have sufficient equity in your home you can borrow up to a maximum of $40,000.  Please note that your current mortgage plus the HRLP Loan cannot exceed 80% of your home’s assessed value as determined by your local property tax assessor.

The interest rate for the program is set based on the previous year’s consumer price index. Loans issued in 2022 will have an interest rate of 4.7%. Your interest rate is not adjustable; once you take out a loan, your interest rate is fixed for the length of the loan.

Rehabilitation Agencies may need to, and are authorized to charge you up to 7% of the home rehabilitation costs as an administrative fee. This fee is to help cover the costs of title reports, project management, and loan processing fees.

Yes. This program is a revolving loan fund so homeowners are required to pay the loan principal, administrative fee and interest when they sell or transfer the ownership of the home or when it is no longer their primary residence. While this is a deferred loan program, homeowners can choose to make periodic payments.

Program Documents

Contact

Gerardo Gonzalez Gomez
Email: Gerardo.GonzalezGomez@Commerce.wa.gov
Phone: 360-764-0076

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