WEALTH Revolving Loan Fund

Waterville Empowering Affordable Living Through Homeownership (WEALTH) Revolving Loan Fund

The City of Waterville has created a revolving loan fund directed at rehabilitating deteriorated residential properties and creating affordable owner-occupied housing. The City’s goals are to: 

  1. improve Waterville’s housing stock; 
  2. increase homeownership, and
  3. improve its neighborhoods. 

Apportionment:

The WEALTH Fund will be apportioned in the following manner:

  • $375,000 in low interest loan funding available to nonprofit organizations engaged in rehabilitating, constructing, and selling homes to low-moderate income (LMI) persons.

Eligibility:

Organizations with missions to provide affordable homeownership to LMI individuals/families making 100% or less of the area median income (HUD definitions apply). 

Although these programs are primarily intended for owner occupied single-family housing, duplex properties also qualify if the duplex is converted into two owner-occupied units.  

Approved Projects: 

  • Project work shall include exterior improvements to owner-occupied residences such as new siding or paint, roof replacement, windows, as well as interior improvements such as insulation, electrical, mechanical, plumbing, HVAC, and other life safety and accessibility needs.

Loan Amt: The maximum loan amount is $50,000 per unit. 

Repayment: The loan will become due upon sale & transfer of title by a nonprofit to a qualified buyer. Interest on the loan will also be due at the time of sale and will be calculated annually at 4%.

Collateral: All borrowers will agree to a lien against their property in the amount of the loan. 

Application Materials Required: 

  1. Completed application 
  2. Current financial statement
  3. Evidence of property ownership and assessed value
  4. Scope of work and itemization of expenses.

Approval: Applications for WEALTH loan funding will be received and reviewed by the Community Development Office to determine whether the projects meet the eligibility criteria. Accepted applications will then be forwarded to City Council for a formal vote of approval, at which point, the Community Development Office will inform the Finance Director to disperse funds, accordingly. 

Other WEALTH Loan Guidelines: 

  1. Loans will be city wide with preference given to neighborhoods with high concentrations of LMI populations, particularly Census Tracts 241.01 and 241.02. A scoring mechanism will apply to all applications and be made available to any nonprofits wishing to access funds.
  2. Loan Restrictions: Though not limited to these alone, this program cannot be used to: 
    1. Refinance another loan without the Committee’s prior approval. 
    2. Fund anything other than physical improvements to homes. 
  3. The borrower is responsible for all costs or fees associated with the issuance of the loan. 
  4. Loan balance plus interest will become immediately due after 18 months. In extenuating circumstances, a borrower can request a six-month extension, at which point the full loan plus interest will become due after 24 months. Any outstanding loan balance will be secured by a recorded lien against the property.
  5.  City Council reserves the right to waive any loan requirements on a case-by-case basis.

For any questions, please contact Michael Hall.

Click here to apply for the WEALTH Revolving Loan Fund.