City of Benton Harbor

Port of Opportunities

City of Benton Harbor Home Rehabilitation Loan Program

The City of Benton Harbor Home Rehabilitation Loan Program is funded through the United States Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) entitlement funds and is locally administered by the City of Benton Harbor and its Third Party Administrator, Southwest Michigan Community Action Agency (SMCAA) http://www.smcaa.com .

The City provides loans between $500 to $25,000 to low-to moderate income homeowners to make repairs to their homes. The City provides these loans through two programs, the Minor Home Repair Loan Program and the Whole House Rehabilitation Loan Program.

Minor Home Repair Loan Program

The Minor Home Repair Loan Program offers funding assistance, in the form of a “zero percent interest” loan to low and moderate income single‐family owner occupied households.

Qualified single‐family homeowners may be able to obtain a loan up to $5,000.00 to make repairs that are minor in nature but necessary to control or arrest the effects from disaster or imminent threats to the health and safety of the household. The minimum amount for an eligible repair is $500.00. The maximum amount allowed for an eligible repair is $5,000.00.

Eligible repairs under the Minor Home Repair Loan Program include but are not limited to:

  • Furnaces
  • Water Heaters
  • Minor electrical and plumbing issues
  • Accessibility improvements, including handicap ramps
  • Minor building code violations cited by the City of Benton Harbor.

For more information on the Minor Home Repair Loan Program,  please see the Minor Home Repair Loan Program Handbook: Minor Home Repair Program Guidelines.

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Whole House Rehabilitation Loan Program

The Whole House Rehabilitation Loan Program offers funding assistance a in the form a “zero percent interest” loan to low and moderate income households throughout the city.

The intent of these loans is to assist qualified owners of single family owner occupied homes in making repairs that are vital to maintaining the health, safety, and welfare of a home and the community.

Eligible single-family homeowners may be able to obtain a loan up to $25,000.00. In the event that lead based paint and/or asbestos are detected the maximum loan amount may be extended to $35,000.00. Any project expected to exceed these amounts must be approved by the loan review committee.

Eligible repairs under the Minor Home Repair Loan Program include but are not limited to:

  • Roofs
  • Windows
  • Siding
  • Doors

For more information on the Whole House Rehabilitation Loan Program, please see the Whole House Rehabilitation Loan Program Handbook: Single Family Owner Occupied Whole House Program Guidelines

Program Eligibility

All eligible applicants must meet the following requirements.

Additional information about program eligibility can be found in the program handbooks:
Minor Home Repair Program Guidelines
Single Family Owner Occupied Whole House Program Guidelines

  • Residency in Benton Harbor. An eligible applicant or household must reside within the Benton Harbor corporate city limits.
  • Home Ownership. An eligible applicant must be a household or an individual who owns and occupies as their principal residence, a single-family dwelling which is their permanent year round residence.
  • Income Limits. An eligible applicant shall provide proof that their household income does not exceed 80% of the Area Median Income (AMI) according to the most current HUD Income Limits.
  • Property Taxes. An eligible applicant shall provide proof that all property taxes and special assessments are paid to date.
  • Homeowner’s Insurance. An eligible applicant shall provide proof of homeowner’s insurance that covers damage to the structure and shall provide federal flood insurance if applicable.
  • Mortgage Payments. An eligible applicant shall provide verification that the home is not in default on mortgage payments and a consistent payment history of maintaining current payments is evident.
  • Water Utility. An eligible applicant shall provide verification that their water utility bill is current.
  • Assets Exclusions. The following are not eligible to participate in the program:
    • Applicants who own more than one (1) single-family home.
    • Applicants who own personal investment property.
    • Applicants who are Land Contract holders.
  • Previous Participation. An eligible applicant shall have not previously participated in the program unless it was for Emergency/Minor Home Repair assistance.
  • Negative Equity. Negative Equity situations will be reviewed on a case by case basis.
  • Debris and Clutter. The applicant shall have the interior and exterior premises free of all debris and clutter to facilitate a review of the item to be repaired.

For more information or to obtain an application, contact the City of Benton Harbor, Community & Economic Development Department at (269) 927-8420 or Brenda Stickles at Southwest Michigan Community Action Agency at (269) 925-9077 ext. 870.