Home Improvement Program 

 Princeton Home Improvement Loan Program (PHILP)

Program Description


Princeton has established a Home Improvement Program to provide funds to eligible low and moderate-income homeowners to make repairs to their property.

The Princeton Home Improvement Program is designed as a deferred loan program.  This means that any homeowner who participates will be required to execute a Mortgage and Mortgage Note, which will place a conditional lien on the home for ten years. If you remain in the home for 10 (ten) years, the loan is forgiven and the lien is removed from your property. If the title is transferred before then, repayment of the loan will be pro-rated depending on the number of years the loan has been in use. 

Once we have determined that you meet Affordable Housing Income Eligibility Limits, you will be scheduled for a Property Inspection, which will be conducted by a Housing Inspector. The purpose of the inspection is to detail any health, safety or code violations which exist on your property.

The inspector will create Work Specifications and a Cost Estimate for your home, based upon the Comprehensive Property Inspection, as well as an Electrical Inspection conducted by Princeton.  We will obtain your approval of the work specifications before the project goes out for bid. 

We will solicit bids from interested contractors by 1) sending Bid Proposal Packages to contractors on our active list of contractors and (2) sending Bid Proposal Packages to the contractor of your choice (if you have one). 

The lowest priced qualified contractor will be awarded the contract to renovate your home. 

You are eligible if:

1.  You are a resident of Princeton.

2.  You own a single family home or a duplex where you reside in one of the units.

3.  You have enough equity in the home to cover the amount of the forgivable loan.

4.  You legally own the property.

5.  Your mortgage and local quarterly property taxes are current.

6.  If your home is in a flood zone you have flood insurance.

7. The gross annual income of all persons residing in your household must not exceed the Affordable Housing Income Eligibility Limits outlined below:

  • 1 person household    $ 68,665
  • 2 person household    $ 78,474
  • 3 person household    $ 78,283
  • 4 person household    $ 98,092
  • 5 person household    $105,940
  •  6 person household    $113,787
  •  7 person household    $121,635
  •   8 person household    $129,482            

The above income limits are subject to modifications according to Court revisions.

If you remain in the home for 10 (ten) years, the loan is forgiven and the lien is removed from your property. The table below describes the terms of repayment:   

Repayment Amounts Owed If Loan Is Terminated

    Years Loan Was Active Percentage Owed

  • 1 year               90%  
  • 2 years:            80%  
  • 3 years:            70%  
  • 4years:             60%  
  • 5 years:            50%  
  • 6 years             40%
  • 7 years             30%
  • 8 years             20%
  • 9 years             10%
  • 10 years           0 %

Should the owner pass away or decide to sell the property, transfer title, or rent it to someone for any reason before the terms of the lien have expired, the owner or heirs, executors, or representatives would be obligated to repay the loan. 

If your home contains a rental unit, you will also be required to sign a 10-year deed restriction to ensure the affordability of the unit as low or moderate income. 

You are not eligible if:

1. Your home is a mobile home or cooperative 

2. If you have previously received assistance through the Princeton Home Improvement Program.

3. If you own or have an interest in any property other than your principal place of residence

4. If you have a reverse mortgage

5. If there is not enough equity in your home to cover the cost of repairs

6. If you have more than one lien against the property, you are ineligible for assistance. Princeton will not hold a third lien position. Note: A home equity loan or line of credit is a lien. 

What Would I Be Able To Fix On My House?

MAJOR CODE VIOLATIONS REPAIRS/REPLACEMENTS

  •    Structural Improvements
  •    Roof
  •    Heating System and Hot Water Heaters
  •    Repairs to Central Air Conditioning 
  •    Driveway Repairs
  •    Plumbing System (includes sewer and water connections or septic systems)
  •    Replacement Windows
  •    Electric System
  •    Weatherization (to reduce energy consumption)
  •    Handicap Improvements (documentation required)
  •    Stove (only when a safety hazard)
  •    Lead Paint Hazard Reduction

MINOR REPAIRS

  •    Interior Painting
  •    Masonry 
  •    Gutters and Leaders
  •    Drywall and Flooring
  •    Fixtures
  •   Carpentry

Provisions for Disabled Persons

if your application documents that a member(s) of your household is disabled by a permanent medical condition that could be improved by more suitable housing conditions, you may be eligible for home improvements that reasonably accommodate his/her needs.  The intent of the program is to increase mobility for the disabled person by relying on low-tech designs and reliable non-mechanical technologies.

ELIGIBLE DISABLED ACCESSIBILITY IMPROVEMENTS

  •    Installation of Handrails
  •    Air Conditioning for Certified Respiratory or other Ailments
  •    Exterior Ramp to Enter/Exit Housing Unit
  •    Retrofit of Door Size for Wheelchair Access
  •    Handicap Toilet
  •    Handicapped Showers

If you have any further questions, please call Princeton Affordable Housing at 609-688-2029 between the hours of 9:00 a.m. – 5:00 p.m.