What is the Rebuild Colorado New Home Construction Program?
The construction of affordable housing for home ownership is a vital part of Colorado’s recovery, and will help make the region more resilient in the face of natural disasters. ReBuild Colorado is utilizing federal disaster recovery funds, along with funding from other sources, for new home construction in the flood-impacted counties. Eighty percent (80%) of the homes built will be in Larimer, Weld, and Boulder Counties. The remainder may be built in other impacted counties, subject to the availability of Habitat for Humanity projects in those areas. Habitat homes are sold to qualified buyers using an affordable mortgage, with priority given to directly-impacted applicants – those whose homes were damaged or destroyed in the flooding.
What are the eligibility criteria for the new home construction program?
The general eligibility criteria for this program as follows. Individual Habitat for Humanity affiliates engaged in ReBuild Colorado may have additional, or more specific, requirements:
Residency – You must have been living or working in a flood-impacted area in September 2013. Habitat for Humanity affiliates may require applicants to have lived in their particular service area for 12 or more months.
Flood-Affected – You must have been directly or indirectly impacted by the September 2013 floods, with priority given to directly-impacted applicants whose homes were damaged or destroyed. The following are examples of impact:
- Your primary residence was damaged or destroyed by flooding or excessive rain
- You had to evacuate your home and/or relocate due to flooding
- You are now required to purchase flood insurance due to changes in the flood plain map, making your current housing payments unaffordable
- Your income was negatively impacted due to the flood by loss of business or job, temporary layoff, reduction of hours, etc.
- Your rent increased within 3 months after the flood and is not affordable
Housing Need – You must have an unmet need for safe, decent, and affordable housing and be unable to qualify for a conventional mortgage loan. Examples of housing need include:
- Current housing costs exceed 30% of your gross household income
- Current housing has inadequate number of bedrooms in relation to the number, age, and gender of household members
- Current housing is temporary or transitional
- Current housing and/or neighborhood is unsafe or unsanitary
- Current housing has problems with heating, plumbing, electrical, water, roof, structure, etc.
Ability to Pay – You must have sufficient income and assets, including relief funds received, to repay a no-profit mortgage or pay a specified amount of the construction costs for the home, to be determined by the Habitat for Humanity affiliate that builds the home.
- You must be a US Citizen or Legal Permanent Resident
- Annual household income must meet the income requirements of the Habitat for Humanity affiliate that will build the home. This is typically at or below 60% of the Area Median Income in the county, but can be higher for directly-impacted applicants. Area Median Income is dependent on family size.
- If a mortgage will be required, you must be able to make payments at up to 30% of total monthly household income.
- You must have a satisfactory credit history and demonstrate the ability to pay off any bad debts and financial judgments.
- You must be able to save up to $1000 for closing costs. Actual amount may vary by Habitat for Humanity affiliate.
Willingness to Partner – You must be able to meet Habitat for Humanity’s partnership requirements:
- Attend required informational meetings and complete all application paperwork in a timely manner
- Contribute up to 500 hours of sweat equity before moving into the home. Actual number of hours may vary by Habitat for Humanity affiliate.
- You may be required to complete several volunteer hours with Habitat before applying
- First-time home buyers must attend all home ownership classes required by Habitat (budgeting, home maintenance, etc.)