Warsaw's Housing Authority is beginning a program to help Warsaw homeowners improve their houses at a low cost.

The Owner-Occupied Rehab program is taking a $330,000 government grant and matching funds to assist homeowners with basic but necessary repairs to their houses.

The first owner-occupied project in Warsaw was completed in 1997. WHA used $250,000 to repair 14 homes, doing electrical work, foundation repair, roofing and plumbing, as well as other projects that needed done.

WHA provides assistance to low-income families who do not have the funds to fix the homes themselves.

During the new rehab project, WHA hopes to fix at least 20 homes, said Catharine Walker, executive director of WHA.

Families who ask for the assistance must fill out an application and prove that they meet the income requirements. A background check must verify the ownership of the home, deed and insurance. After the family makes a list of things they think should be fixed, an inspector will examine the property and decide what should be repaired.

WHA will pay for the most serious repairs to be fixed in the house first. Walker said faulty electrical wiring is found in many old houses in this area and must be fixed to provide safety before other repairs can be provided.

The specifications for repairs are sent to the WHA's loan committee, made of the board of commissioners, who approve or turn down the request. Contractors then walk through the home and make bids on estimated costs to repair the house.

WHA places a lien on the house as a second mortgage, and homeowners sign a promissory note to pay back the loan. Since WHA provides funds to low-income families, a percentage of the loan is often counted as "forgivable" and does not need to be repaid.

But if the owner sells or moves out of the home within 10 years after the improvements, they are required to pay back the loan to ensure WHA is reimbursed for the mortgage.

An advantage to the contract with contractors is a one-year guarantee on their work. Contractors are required to repair anything that is found in one year that was directly related to what they fixed.

Walker said very little had been found in the inspections from the first round of repaired homes. She said it points to the "superb quality of the contractors who participated."

The city of Warsaw was awarded a $300,000 grant from the Indiana Housing Financing Authority to be administrated through WHA for this project. Warsaw is one of the cities that does not automatically receive housing assistance from the government because of its small population base.

WHA is currently working on writing specifications to improve five properties. They invited local contractors on walk-throughs of two houses Friday morning. Walker said WHA has many outstanding applications, but is looking for more interested families. According to the terms of the grant, all the money must be under contract by Dec. 31 and all the projects must be closed out by June 30, 1999. [[In-content Ad]]