Residential Rehab Loans

This program is designed to (1) provide low interest financial assistance for necessary improvements to residential property owned or occupied by low/moderate income persons, (2) eliminate code violations in existing housing resulting in safe and sanitary living conditions, (3) implement and encourage energy efficient improvements, (4) eliminate lead based paint hazards, and (5) prevent the decline and deterioration of older neighborhoods. Such decline results in an erosion of the tax base, a loss of investment equity by owners, and requires more extensive and expensive future remedial action on the part of the homeowner. The preservation of housing stock is one of the primary objectives of citizens, City Council, and staff professionals who believe that the quality of housing is a primary source of neighborhood stability.

Owner-Occupied Property Loans

The Owner-Occupied Property Loan program is designed to assist low-and-moderate income homeowners with the repair and/or replacement of major housing components. The goal is to maintain the structural integrity and essential operations of the house and to benefit homeowners in the City of Bangor. Common items repaired or replaced include, but are not limited to: roofs, windows, doors, siding, exterior trim, electrical and plumbing, foundations, walls, ceilings, floors, interior and exterior stairways, and energy efficiency upgrades.

Investment Property Loans

The Investment Property Loan program assists property owners in the maintenance of properties whose majority occupancy qualifies as low to moderate income tenants. Common items repaired or replaced include, but are not limited to: roofs, windows, doors, siding, exterior trim, electrical and plumbing, foundations, walls, ceilings, floors, interior and exterior stairways, and energy efficiency upgrades.

Program Income Limits (2023)

To qualify for Residential Rehabilitation Loans, Closing Cost Assistance, City Wide Down Payment Assistance, and/or Residential Exterior Improvement Grants in the current Neighborhood Revitalization Strategy Area, family income must be at or below 80% of the Area Median Income (A.M.I.) as determined by the Department of Housing and Urban Development (HUD):

To qualify for Deferred Residential Rehabilitation Loans, family income must be at or below 50% of the A.M.I. as determined by HUD:

These numbers apply to most City of Bangor Programs; however, Neighborhood Stabilization Program and Down Payment Assistance Program in the current Neighborhood Revitalization Strategy Area (N.R.S.A.) have higher income limits. Please contact the Housing Rehabilitation Coordinator for the income figures for these two programs.

Eligible low-income owner occupied 1-4 family dwellings

• Interest rate – 3%
• Term – up to 20 years
• Approximate monthly payment as low as $5.55 per $1,000 borrowed

Eligible very-low-income owner occupied 1-2 family dwellings

• Interest rate – 3%
• Term – until sale or transfer of property
• Monthly payment – deferred until sale or transfer

Investor owned property with income eligible tenants

• Interest rate – Prime
• Term – 10 – 15 years
• Approximate monthly payment as low as $9.56 to $11.11 per $1,000 borrowed

Important Costs Considerations

A rehabilitation loan may be made only with respect to a property which needs to be brought up to minimum requirements of the 2009 International Residential Building Code, and/or the “Housing Quality Standards” established by the U.S. Department of Housing and Urban Development (HUD). Once a property is determined to meet this requirement, other potential costs are:

1. Cost effective energy conservation measures such as insulation, weatherstripping, new or modified heating equipment, doors, windows, etc.

2. General property improvements not of a luxury nature, roofing, foundation repair, plumbing, electrical repairs, kitchen and bathroom repairs, replacement of non-working stoves or refrigerators, flooring, siding, painting, etc.

3. Modifications to make a living unit accessible to a handicapped or elderly occupant.

Programs are administered by the City of Bangor's Community and Economic Development Department. Please contact (207) 992-4280.

Programs are administered by the City of Bangor's Community and Economic Development Department on a first come-first served basis and are funded by the Department of Housing and Urban Development's (HUD) Community Development Block Grant (CDBG) program. Amounts and eligibility requirements are subject to change without notice. Eligibility for participation is determined at the time of full application upon verification of information provided. Eligibility does not necessarily insure the receipt of financial assistance.