0%-interest loans to help make homes safe.
The Home Rehabilitation Loan Program can provide up to $75,000 for interior and exterior repairs to bring the home up to code. No monthly loan payments are required, and a lien will be placed against the home for the loan amount for up to a period of 15 years. This lien will be released at the end of the 15-year term as long as the home remains the primary residence.
What is the Home Rehabilitation Loan Used For?
The purpose of the Homeowner Rehabilitation/Reconstruction Loan Program (HRLP) is to assist low-to-moderate income homeowners within the City of Austin Full Purpose corporate city limits. There are two types of HRLP loans. The Home Rehabilitation Loan can be used for the following:
- Repairs to the foundation, roof, plumbing, HVAC, windows, and electrical
- Major interior and exterior repairs
- Complete rehabilitation of home, reconstruction if needed
- Up to $75,000 Repair Loans- HRLP Home Improvement Repair Loans improve the substandard housing conditions of Properties by providing repairs to make the Applicant’s properties decent, safe, and sanitary throughout.
- Up to $350,000 loans to demolish and rebuild a new home- If the repairs are too extensive and the home cannot be repaired within the $75,000 funds, then it is recommended that the existing home be demolished and a new home be built in its place.
Eligibility Requirements
Austin residents must meet the following requirements to be eligible for the Home Rehabilitation Loan Program:
- The home is within the Austin city limits.
- The home is a single-family detached home. It must be the primary residence of the applicant.
- The applicant must own the property. Owner has a clear title on the property, and ownership is in his/her name.
- Applicant has not been discharged from bankruptcy less than two years of application date.
- Austinites must have a gross annual income at/below 80% Median Family Income (MFI). The table below shows the income limits by the number of persons living in the home.
| Number of people living in household | 1 person |
2 people |
3 people |
4 people |
5 people |
6 people |
| Annual income at 80% MFI or less | $68,500 | $78,250 | $88,050 | $97,800 | $105,650 | $113,450 |
For example: 4-person household would need to earn an annual income of $97,800 or less to qualify.
How Does the Home Rehabilitation Loan Program Work?
| Home Repair Loan Amount | Term & Lien | Interest Rate |
|---|---|---|
| Less than $15,000 | 5 Years for length of loan | 0% |
| $15,000–$40,000 | 10 Years for length of loan | 0% |
| $40,001–$75,000 | 15 Years for length of loan | 0% |
No monthly payments are required but a lien is put against the home. A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A creditor or a legal judgment could establish a lien. A lien serves to guarantee an underlying obligation, such as the repayment of a loan.
The home must remain the primary residence of the homeowner for the entire term of the loan.
If the owners choose to sell or rent the home, transfer title, refinance, or draw an equity loan within 15 years of the loan, the amount owed on the loan comes due.
Application Process
- If you are eligible, complete and submit the new short and easy-to-use online Home Repairs Request More Information form (available in English and Spanish).
- You will be contacted about the next steps.
- Construction scheduling varies based on need, project size, and repairs needed.
Call 512-974-3100 OR email hpdcs@austintexas.gov with questions. The City receives and accepts Video Relay Service (VRS) calls from people who are Deaf or hard of hearing.
For a checklist of other programs and resources that are available, visit Austin Is My Home.