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What is SCHAP?
Who
is Eligible?
SCHAPs
Services
Contacts
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What
is SCHAP?
The
Parodneck Foundation’s Senior Citizen Homeowner Assistance Program
(SCHAP) provides financial assistance to senior citizen homeowners
who are living in physically deteriorated housing or who are in
danger of losing their homes to foreclosure. The program, which
has been in operation since 1986, provides no- and low-interest
loans and extensive technical assistance to qualified seniors. This
support enables seniors to retain their homes and improve their
living conditions, thereby helping them avoid financial insolvency,
displacement, and/or loss of independence. To date, the SCHAP program
is the only affordable financial and home improvement
program in New York City targeted exclusively to low income senior
homeowners. Since 1986, SCHAP has assisted over 1,000 homeowners(see map for locations-SCHAP Loans 1986-2006)
Who
is eligible for assistance through SCHAP?
To
be eligible, a senior must reside in any of the five boroughs in
the City of New York, be at least 60 years old, and have been an
owner-occupant of a one- to four-family home for at least two years.
Homes must have property and liability Insurance. Seniors household incomes, including rental income, cannot exceed the income area median income.
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What
services does SCHAP offer?
Senior-Help
Deferred/Forgivable Loan Program : This program provides interest-free
loans that can be used to cover the costs of home improvements.
Because this is a deferred loan, there are no monthly payments.
Ten percent of the loan, and all fees, are forgiven after the first
year. If the borrower is still living in the home after 30 years
the balance of the loan is forgiven, provided that the borrower
is in compliance with the terms and conditions of the loan agreements.
The loan is payable in full if the house is sold or ownership is
transferred, if the borrower moves out, or upon death of the borrower.
A processing fee (10% of the construction amount), a $250 legal
fee, and a $750 engineering fee are added to the loan amount at
closing.
Senior-Help
Repayment Loan Program : This program provides low-interest
(0-3%) repayment loans that can be used to cover the costs of home
improvements. These loans are repaid monthly over a thirty-year
period. The loan is payable in full if the house is sold or ownership
is transferred, if the borrower moves out, or upon death of the
borrower. A processing fee (10% of the construction amount), a $250
legal fee, and a $750 engineering fee are added to the loan amount
at loan closing.
The
Parodneck Foundation Revolving Loan Fund Program : This program
provides low-interest (0-6%) repayment loans that can be used for
repairs or for payment of real estate taxes, mortgage arrears, and
legal or architectural fees and other professional services related
to the senior’s home. These loans, which are made on a case-by-case
basis, generally do not exceed $10,000. The 5% processing fee can
be included in the loan.
Predatory
Lending Remediation Loan : If a senior has been taken advantage
of by a broker/mortgage company, and is in financial debt or foreclosure,
and have repair problems, they may be eligible for assistance through
the remediation program. The program provides qualified applicants
a financial package that includes a bank loan, a deferred home improvement
loan, and a deferred loan from the City of New York. As a condition
of these loans, the senior may be required to participate in budget
counseling and/or the use of a trustee or community agency to help
manage the loan.
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Requirements
to be Eligible for Support
through
the SCHAP Program
·
The applicant must be a least 60 years old.
·
The applicant must be an owner-occupant of a building
with no more than four units. (This program does not provide funds
to repair recently purchased homes. Therefore, a minimum two (2)
year period as owner/occupant is required.)
·
Income cannot exceed 120% of the area median income.
In 2006, the limits are: $59,600 for a one-person household, $68,000
for a two-person household, and 76,600 three-person household. Income
adjustments are made for larger households.
Required
Documents
1.
Proof of age (example: copy of birth certificate, pension
or social security documentation, drivers license or passport).
2.
Proof of current personal and rental income for all
members of the household (copies of W2 forms, tax returns, pension
or social security award letters). If rental units are present,
copies of rent receipts or a copy of the lease must be submitted.
3.
Copies of both sides of the filed deed. (If another
name in addition to the senior’s appears on the deed, that person
must sign loan documents. If one of the parties is deceased, a copy
of the death certificate is required.)
4.
Copy of picture identification for each person that
must sign loan documents.
5.
Copies of any Mortgages(s)and/or Satisfaction(s) of
Mortgage(s). Mortgage status information (current) must be obtained
for all recorded mortgages. The senior must sign one Mortgage Information
Release Form (attached at back of application) for each mortgage.
6.
Copies of current fuel and utility bills.
7.
Copy of home insurance policy (a property must have
liability and property insurance).
8.
Copies of real estate tax and water & sewer tax
bills.
SCHAP
interviews applicants and reviews their documentation to determine
eligibility. If an applicant meets all requirements, a Parodneck
Foundation staff member will inspect the senior’s home to determine
what home repair/improvement work is necessary. The staff member
then prepares a scope of work, which is sent to the borrower, who
in turn will present it to licensed contractors for free written
estimates. A minimum of three estimates is required. After a contractor
is chosen and all documentation is in place, the loan is closed
and mortgages are filed. All home repairs are then carried out by
the contractor. The SCHAP staff visit the site several times before
and during construction. If the repairs meet approval, final payment
is authorized.
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For
more information or an application, contact
The
Parodneck Foundation
(212)
431-9700 ext. 300
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