INFORMATION SHEET
2016 Lambton Renovates Program for Homeowners
Disclaimer: Details contained herein are for information purposes only, and are not to be relied upon as a comprehensive or precise representation of the program, its terms and conditions or eligibility rules.
Please read carefully before applying for a loan under the Lambton Renovates Program.
The Federal and Provincial governments have partnered to fund the Lambton Renovates program for Lambton County. Completed applications are processed on a first come first serve basis. An exception to the first come first serve basis may be made if loan applications are for urgent and critical repairs and may be approved by the Program Administrator, in its sole discretion.
Recipients of funding from previous rounds of Lambton Renovates, Homeownership Down Payment Assistance or Rental & Supportive Component of AHP/IAH Programs are not eligible for additional funding under this or future rounds of the Lambton Renovates Program.
Funding is available only to qualifying homeowners. The home requiring the work must be owned and occupied by the homeowner as their sole and principal residence for the full term of the loan. At this time, landlords and/or rental units are not eligible for funding.
Funding is provided in the form of a 10 year forgivable loan to homeowner occupant based on the cost of approved work items. Accessibility repair costs up to the first $5,000 may be in the form of a grant rather than a loan and does not require repayment. The amount of funding per homeowner application may be up to a maximum of $20,000. Additional funding over the $20,000 maximum may be approved on a case-by-case basis, by the Program Administrator, in its sole discretion.
Program recipients are required to sign a Loan Agreement to be registered as a second mortgage on the title of the property. The loan agreement shall in no case be lower than second position on the title of the property.
The loan is payment free, interest free and forgivable as long as the homeowner occupant complies with program rules at all times. Provided the homeowner occupant remains in compliance with program rules, the loan is forgiven at the rate of 10% per year over the program period. The earning of loan forgiveness begins on the date the project work passes final inspection.
All or part of the loan is repayable under certain circumstances. The full amount of the loan may be repayable if a lien, other charge or claim is made against the home. The full amount of the loan is repayable if information provided by the applicant is false or misrepresented, the applicant omits relevant information and/or the funding is used for purposes other than the approved use.
In other circumstances, including a sale of the home or if the homeowner occupant ceases to occupy the home as their sole and principal residence, the balance of the loan is repayable on the basis of the 10% per year forgivable calculation.
Eligibility Criteria
The following highlights applicant eligibility criteria, subject to the discretion of the County of Lambton.
1. A fully completed 2016 Lambton Renovates Application Form is required;
2. Photocopy of 1 piece of government issued identification of the Applicant and each household member over 18 (ex. Birth Certificate, Passport, Driver's License, Ontario Photo Card);
3. The combined total annual gross foreign and Canadian household income cannot exceed the tiered income limit as follows:
· 1 person household - $49,600
· 2 person household - $57,900
· 3 person household - $66,100
· 4 person household - $74,400
· 5 person household - $82,600
4. The combined total foreign and Canadian household assets as established under O. Reg. 367/11 Sec 35 cannot exceed $100,000, excluding the sole and principal residence. This includes assets from every member of the household that is 18 years of age or older;
5. The home is located in any municipality within the County of Lambton;
6. The home is more than five years old;
7. Homes situated on 'leasehold land and/or leasehold land improvements' are not eligible for this program. The applicant must own both the home and the land the home is situated on;
8. Market value (MPAC or licensed qualified appraisal) of the home does not exceed $210,000;
9. The total balance of all existing mortgages/charges and other financing registered on the title of the property plus the estimated program loan amount do not exceed 120% of the market value of the property as determined by MPAC or a licensed qualified appraiser;
10. Results from Title and Sheriff Certificate searches (completed by the County of Lambton) are to the County's satisfaction;
11. For the loan component of Lambton Renovates, the County's loan must be registered against the property in either first or second position. The County may be placed in second position only for a first mortgage. Any other financing, liens or charges must be registered behind the County.
12. Mortgage/charge and other financing payments must be up-to-date and not in arrears;
13. Homeowner insurance coverage must be in place for the full value of the home and the premium must be paid up-to-date and not in arrears;
14. Property tax account is paid up-to-date and not in arrears;
15. Applicants do not have outstanding social housing arrears in Ontario;
16. The home requiring the work must be owned and occupied by the applicant(s) as their sole and principal residence for the full term of the loan;
17. The intended work must be eligible for program funds;
18. Accessibility modifications qualify for approval of a grant not to exceed $5,000 if:
· The modifications are required to accommodate a medical condition of one or more occupants of the home that requires improved accessibility features and;
· The need for accessibility modifications is verified in writing by a qualified professional, where the verification of the need for the accessibility modifications and the qualified professional are acceptable and satisfactory to the Program Coordinator and;
· The accessibility modifications required are clearly described and specified by a qualified professional where the description and specifications of the accessibility modifications and the qualification of the professional are acceptable and satisfactory to the Program Coordinator;
19. Any work started prior to approval of the Loan Agreement on title or submission of the signed Letter of Agreement for the Grant component, whichever applies, is not eligible for program funding;
20. Work that may be covered by the homeowner's insurance policy or covered by a warranty period is not eligible for program funding.
General Information
1. Approved applicants must sign and register a forgivable Loan Agreement on title within program timelines. In the case of an accessibility grant, approved applicants must sign and submit the Letter of Agreement for the grant to the Program Coordinator;
2. Work must commence within 45 days of the date the Loan Agreement is registered on title and be completed within 120 days of commencement. In the case of an accessibility grant, work must commence within 45 days of the Letter of Agreement and be completed within 120 days of commencement;
3. The need for and a description of the intended work must be confirmed by the County of Lambton's Building Services Department. Where confirmation by the County's Building Services Department is not possible, a qualified professional must confirm the work. Qualified professional includes an inspector from the Fire Department, Electrical Safety Authority, gas company, utility company, engineer, and in some cases a qualified home inspector, a qualified contractor or a qualified medical professional. Confirmation of the need and work descriptions must be in a form, content and from a source acceptable to the Program Administrator;
4. Quotes and estimates for the work must be from a qualified contractor and the relationship with the contractor must be at arms-length. “Arms-length” means a transaction in which the buyers and sellers of a product or service act independently and have no relationship to each other. The concept of an arm's length transaction is intended to facilitate a prudent use of public funds and ensure that the parties in the transaction are acting in their own self-interest and are not subject to any pressure or undue influence from the other party;
5. Quotes and estimates for the work must include the contractor's HST number and an itemized list of the scope of work to be completed along with the cost to complete each item of work listed;
6. The homeowner occupant must retain and submit copies of all financial records (including invoices and proof of payment) for reporting and audit purposes;
7. All work must be in accordance with applicable rules and regulations, including but not limited to, zoning and municipal requirements;
- The homeowner occupant must adhere to all program requirements, rules and timelines throughout the process and during the 10 year forgivable loan period.
Inspections
The need for and a description of the intended work must be confirmed by the County of Lambton's Building Services Department and where not possible, by a qualified professional. An inspector from the County's Building Services Department or the qualified professional may be obligated to record any defects in the home even if the defect was not part of the Lambton Renovates Loan Application.
The results of the inspection may remain on the record of your home and if so all work must be completed even if you withdraw your application or if your application is not approved. It is also possible that the maximum funding is not enough to pay for all the work listed in the inspection report even if your application is approved. In this case, you may be responsible to complete the work at your own expense prior to starting the Lambton Renovates work.
It is also important to note that if the cost of the work described in the inspection reports is higher than the amount you requested on your application but lower than the maximum amounts allowed under the program, you may amend your application and request a higher loan amount. Such requests will be reviewed on a case by case basis but there is no guarantee that a request for a higher amount will be approved.
Eligible Projects
Any work started prior to approval of your application is not eligible for program funding. Applicants must obtain the necessary permits, approvals and final inspections for all work. Eligible repairs for Lambton Renovates may include the following activities:
Repairs or replacements required to make a house safe. Examples of this include repairs required to remedy leaky roofs where deterioration is beyond practical repairs, basement leaking, mould/asbestos removal to eliminate a present health hazard, fire safety items, electrical defects, chimneys, doors and windows, plumbing defects, septic systems, well water and well drilling, the replacement of a furnace (or the home's primary heat source) condemned by the governing authority; or repairs mandated by the County's Building Services Department;
Lambton Renovates strongly encourages the use of energy-saving products or systems for the required repairs and/or rehabilitation.
Modifications to increase accessibility related to housing and reasonably related to an occupant’s disability including permanent installations of ramps, handrails, chair and bath lifts, height adjustments to countertops, and cues for doorbells/fire alarms.
Other eligible costs include labour and applicable taxes, building permits, legal fees, certificates, appraisal fees, inspection fees, drawing and specification and any other costs that the County of Lambton deems reasonable and that are agreed to by the Ministry of Municipal Affairs and Housing.
IMPORTANT INFORMATION
Applicants are not approved for any program funds solely on the basis of submitting an application or other information. All applicants are cautioned not to rely on Lambton Renovates program funds until they receive a Letter of Final Approval confirming the application has been approved for program funds.
Any work started prior to registration of the Loan Agreement on title or in the case of an accessibility grant, submission of the signed Grant Letter of Agreement, is not eligible for program funding.
If your application is approved, program funds cannot be released or advanced to you until:
· all the work is completed;
· invoices submitted;
· final inspection completed; and
· inspection report reviewed to ensure work is completed and that homeowner is satisfied the work has been completed per the terms of their contract with the contractor.
Program funds cannot be used for deposits or progress draws to contractors.
Applicants are cautioned not to sign any agreement or contract with a contractor prior to registration of the Loan Agreement on title or in the case of an accessibility grant, receipt of the signed Grant Letter of Agreement by the PC.
Please note: Any and all contracts for the work are the responsibility of the applicant. The County of Lambton is not responsible for or bound in any way by any third party contracts.
How to Apply
1. Applications may be picked up at the County of Lambton's Housing Services Department located at:
County of Lambton
Housing Services Dept.
150 N. Christina
2nd Floor, Housing Services Dept.
Sarnia ON N7T 8H3
Office Hours: Monday to Friday from 8:30 a.m. to 4:30 p.m., excluding holidays.
2. Applications are also available online at the County of Lambton website www.lambtononline.ca. Click on: Residents ► Housing Services ► Lambton Renovates.
3. Completed applications may be mailed, faxed and/or dropped off to Housing Services.
County of Lambton
Housing Services Dept.
150 N. Christina
2nd Floor, Housing Services Dept.
Sarnia ON N7T 8H3
Fax: 519-344-2066
Office Hours: Monday to Friday from 8:30 a.m. to 4:30 p.m., excluding holidays.
4. For additional information, contact the Program Coordinator at 519-344-2062 ext 2165.
Lambton Renovates - 7 Process Steps
The delivery of the 2016 Lambton Renovates program is coordinated by the Project Coordinator (PC).
Here is a 7 step overview of the Lambton Renovates program:
Step 1 Submit completed application and supporting documents to PC.
Step 2 PC reviews initial application for eligibility