Homeowner Rehabilitation

Homeowner Rehabilitation Loan Program

The Provo City Homeowner Rehabilitation Program is a 0% interest loan program for low and moderate-income homeowners.  This program is designed to assist owner-occupied single-family homes within Provo City limits.  This program requires that any code violations in the home must be fixed along with other rehabilitation items.

What is It?

Loans can be made up to $40,000, based on needed repairs and debt capacity.

Applicants with a median income below 50% of the area median income as determined by the Department of Housing and Urban Development (HUD) may qualify for a deferred, 0% interest loan.  The loan will be payable on sale, transfer of title, or lease/rent of the home.  (See income Chart)

Applicants with a median income between 50-80% of the area median income as determined by HUD may qualify for an installment loan with 0% interest.  Repayment of the loan is made with regular monthly installment payments.  Payments will begin 6 months after the closing date of the loan and will be repayable over a period of up to 20 years. (See Income Chart)

What Repairs Can be Made?

Eligible repairs and improvements include, but are not limited to, the following:

  • First priority is given to items needed to bring house up to current Provo City code
  • Items needed for accessibility purposes
  • Plumbing and electrical repairs
  • Roof and structural repairs
  • Needed utility replacement/upgrades
  • Needed kitchen and bathroom rehab
  • Needed floor replacement
  • Window and door replacement
  • wall repairs/repainting

What is The Process?

Fill out and submit application with required paperwork to Community and Neighborhood Services Office.

Once an application is received and income eligibility is determined, a calculation of income and existing debt will be conducted to determine eligible loan amount.

A Provo City staff member, a Provo City inspector and the applicant will walk through the applicant's home to determine the scope of needed work.

A scope of work will be written up and signed off by the homeowner and City staff to include in bid request.

Pool of eligible contractors will bid on the project.

Contractor will be chosen from bids and approved by homeowner and City staff. 

Once loan is closed at the Community and Neighborhood Services office, construction can begin.  Work will be overseen by City staff.

Once completed, a final walk-through inspection will take place and all work will be signed off by contractor, homeowner and City staff.

Additional Qualifications:

  • Homeowner must be current on mortgage payments and property taxes.
  • Credit report should have no history of payments that are more than 60-days late and must be explained.
  • No legal actions, including liens, judgments, garnishments or suits within the past 2 years.
  • Homeowner property must be maintained and show no evidence of low pride of ownership.
  • Homeowner is required to contribute $1,000 of their own money or 100 hours of sweat equity or some combination of the two.
  • After-rehab value of the home may not exceed $316,000.

Review the Policies and Procedures Manual for full program details.