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, SCHAP 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 1986-2015).
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. If the senior has a reverse mortgage, they will not qualify for the program.
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 in part or entirety, 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 $1,200 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 $1,200 engineering fee are added to the loan amount at loan closing.
Click here to take a look at the requirements to evaluate your initial eligibility to apply for SCHAP.