The LEAD PAINT ABATEMENT PROGRAM is a new program being administered through the Town’s Department of Community Development. In order to stimulate the reducation of lead paint hazards from residential housing units in the Town and to complement local neighborhood revitalization efforts, the Mass. Housing Finance Agency has instituted the LEAD PAINT ABATEMENT PROGRAM. Under this program, MHFA will be financing lead paint abatement activities for owner-occupied one to four family properties throughout the Commonwealth. Funding is on an on-going basis so please do not hesitate to inquire about the Lead Paint Abatement Program. The Town of Adams has been approved as a local rehabilitation agency who will accept applications on an on-going basis and will be allowed to access funds as soon as applicants are approved.

This booklet is designed to inform you on what you need to do in order to keep the application process moving along. There are many steps involved along the way, but don’t worry; the program will assist you with these tasks. The first thing you should do is to read the Mass Housing Finance Agency (MHFA) brochure. This brochure informs you about borrower and income eligibility, eligible properties and eligible abatement activities. After reviewing this, make yourself a list of questions and the program will try to answer them for you. The rest of the process is as follows.....

Inspection and Work Write-up:

Once we determine your eligibility, we will assist you in securing MHFA financing. We will also provide lists of state-certified lead abatement inspectors and licensed contractors for the homeowner’s consideration.

Next, homeowners will hire a state-certified lead abatement inspector to examine the home to determine where lead paint exists and from what surfaces it must be removed. (Homeowners who have a lead paint inspection prior to applying for financing may be reimbursed for inspection costs as long as lead exists and they are approved for financing.)

A work write-up will be prepared by the lead paint contractor and he will submit a price to remove the lead paint. Upon completion of the work, homeowners must have their property reinspected by state-licensed inspectors who must provide a written “Certificate of Compliance”, verifying that the required surfaces containing lead paint were treated or abated properly and home is safe for reoccupancy.

In no instance, will the final disbursement of loan funds or lead abatement work be made before the certificate is issued indicating the the work has been done in full compliance with the state lead laws.

A program representative will monitor the process and approve the payments to the contractor.

Labor:

As stated previously, the write-up is designed to act as a complete construction agreement where all a State Certified Lead Paint contractor needs to do is to fill out the line item prices for the various scopes of work and to sign and date the cover sheet as well. The selected State Certified Lead Paint contractor does not necessarily have to use the program’s construction agreement; the State Certified Lead Paint Contractor’s official proposal forms are allowable. The homeowner should make sure though that if a State Certified Lead Paint contractor designs his own proposal that it covers all of the desired work.

The homeowner is ultimately responsible to hire the State Certified Lead Paint Contractor of their choice. The program does not promote any one State Certified Lead Paint contracting firm over the other. The program though will provide you with a list of firms. The program has gathered this list as a means of assisting you in the selection of a State Certified Lead Paint contractor. You are not bound to this list. Again, you an hire any party of your choice although you should check customer references, see if they are State Certified Lead Paint Contractors, and see if they are properly insured.

Because there will be a time delay between the time you hire your State Certified Lead contractor and the time the work actually begins, it is very important that the State Certified Lead Paint contractor you hire is aware of this. This delay of time, which could be as long as one month, could affet your State Certified Lead Paint contractor's scheduling time and/or prices. Remember, there will be only one loan closing. Any price increase between the time the contractor is hired and the time the work begins will have to be absorbed by the homeowner. You cannot go back to the program to borrow more money for any cost increases!

Application to Bank:

Once the homeowners have secured all of their construction agreements the program then mails the entire loan application package to the participating mortgage lender. The program's participating mortgage lender will conduct the entire loan review process. This means that they ultimately verify employment status, credit history, income and expenses. The basic "affordability" criteria which is used is one-half of 75% of gross monthly stable income as the maximum allowable towards all regular "debt". This debt would also include the Lead Paint Abatement Program loan amount as well. Within one to two weeks, the applicants should receive a formal letter of acceptance or rejection. If it is a rejection, the applicants are encouraged to apply again to future rounds of the program. If the loan is approved, a closing is then scheduled.

Loan Closing and Escrow:

Upon receipt of loan approval, a mortgage commitment letter will spell out what the homeowner needs to do next. The homeowner will basically have to send a certified check to the attorney named in the commitment letter. The amount is approximately $150 and this covers the cost of the closing. Once the attorney has all the required paperwork prepared, a closing will take place. It is improtant to note that ll borrowers will have to attend the closing which will take place in Pittsfield.

After the closing, the loan proceeds must be placed in a local bank in the Town of Adams. This account must be a joint account between the program and the homeowner. As the State Certified Lead Paint contractor and in some cases a construction contractor complete their work, payments will be made by the program to the State Certified Lead Paint contractor and/or Construction Contractor on behalf of the homeowner. Joint payments may be made to the State Certified Lead Paint contractor and/or Construction Contractor and the homeowner. All interest income earned on the escrow account will be returned to the homeowner after all work is completed. Again, actual constructino work cannot start until the closing and escrow account have been set.

Fees:

As discussed previously and as highlighted in the MHFA Lead Paint Abatement Program brochure, there are only two basic fees that the homeowners must pay for. The first one is for the cost of closign which again is approximately $150. This amount must be mailed by the borrower directly to the attorney within 30 days of the mortgage commitment letter. The other fee is the Rehabilitation Agency Fee which is 4% of the improvement need (with a minimum of $200 and a maximum of $600). This fee is collected by the program after the closign. A separate check is prepared for this by the bank.

Before we leave you, an example is provided below on a typical loan amount determination:

The $12,500 is placed in an interest earning joint escrow account where payments will be made for the improvements. The $500 is payable to the Town of Adams after closing by separate check.

The Town of Adams encourages you to take advantage of this exciting program. Please contact us for more information. We look forward to hearing from you.