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Housing Reconstruction

The Housing Reconstruction Program assists qualifying very low, low, and moderate-income homeowners in target areas reconstruct their home with a combination payback and forgivable loan. Temporary Relocation Services are provided under the City of Lubbock’s Optional Relocation Policy during the demolition and construction.

Program Information
"Reconstruction" is defined as the rebuilding of existing housing that is non-rehabitable. The federal funding for this program is provided through the Home Investment Partnership Program (HOME) and/or Community Development Block Grant (CDBG).

This is a voluntary program. Participants are required to sign a voluntary demolition contract with the demolition contractor. The contractor is selected through a bidding process.

The City provides assistance in the form of a No Interest Deferred Payment Loan (NIDP) and a Housing Reconstruction Loan (HRL) for replacing the substandard unit.

Homes are referred from rehab applications that have been denied because the substandard home(s) cannot be rehabilitated.

Applicants must be income eligible and owner occupants of a property located in a targeted area.

Street Borders for Target Neighborhoods
Target Area Map

2014-2018 Target Areas
CDBG Mahon Map

Mahon Target Area
North  - Cornell
West - Baylor
East - N Ave Q
South - Auburn

CDBG Parkway Cherry Point Map
Parkway Cherry Point Map
North - E Erskine
Northwest - E Municipal Dr.
South - Parkway Dr.

CDBG Dunbar map

Dunbar - Manhattan
North - E 24th St./Mahattan Dr.
West - Martin Luther King Blvd.
South - E 37th St.
East - Canyon Lake Dr.

Program Requirements

1. Home must be located in a targeted area.

2. An owner occupied non-rehabitable residence as determined by the CD staff.

3. A clear title. Applicants with complicated title problems and judgments will not be accepted.

4. No delinquent taxes, liens or money owed on the property. The house should be paid for as the City will only take a first lien position. (Small mortgage balances may be considered for refinancing.)

5. Reasonably good credit with a record of prompt payment.

6. Enough income to make the monthly HRL loan payments. Applicants cannot pay more than thirty percent (30%) of their adjusted gross income for housing. Applicants having more than forty-one percent (41%) monthly debt including housing cannot be included in the program.

7. A clean yard. The property must pass an environmental evaluation.

8. Must be at or below the income guidelines according to family size.

Income Guidelines

Applicants must be at or below the following:
Federal Income Guidelines

Family Size 80% of Median Income
for Lubbock County
1 $31,450
2 $35,950
3 $40,450
4 $44,900
5 $48,500
6 $52,100
7 $55,700
8 $59,300

Optional Relocation Policy

The City of Lubbock will provide temporary rental assistance and moving assistance as described in its Optional Relocation Policy.

Types of Loans Available

Housing Reconstruction Loan (HRL)
The HRL portion of the loan is paid back on a sliding scale herein in proportion of family income and family size. The HRL, the primary loan, is for a period of 20 years with 3% interest.

No-Interest Deferred Payment Loan (NIDP)
The forgiven or NIDP portion at ($0) monthly payment and zero percent (0%) interest is also a 20 year note which reduces at 1/20th per year. If the owner defaults or moves before the 20 years are up, then the remaining portions of both loans shall be paid back.

Income Payback HR Forgiven NIDP
0-30% (62 Yrs. and over and/or disabled) 10% 90%
0-30% 35% 65%
31-40% 40% 60%
41-50% 45% 55% 
51-60% 50% 50%
61-70% 55% 45%
71-80% 60% 40%

EXAMPLE: The estimated monthly payment for a household under 62 yrs. old qualifying for a 50% payback loan and a 50% forgivable loan on a $95,000 (total loan) reconstructed home is as follows:

Principal & Interest $263.43
Est. Taxes $172.57
Est. Insurance (Rate based on credit) $69.00
Monthly Payments $505.00
(20-yr. Note 3% interest)

The estimated monthly payment (PITI) for a Head of Household 62 years of age and older or disabled at or below 30% of median income on a $95,000 home will be approximately $250.00 - $285.00 or more. Payments will vary with insurance rates based on credit.