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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 Areas 2009-2013

targetArea 5 Years

Under the Lubbock City Council‘s guidance, the Community Development Department takes a concentrated approach to community revitalization. By choosing small areas in which to concentrate programs, success will be realized sooner. HUD considers Block Group areas eligible if over 51 percent of their population is below 80 percent of the median income for the City of Lubbock. Areas, which are eligible under this definition, are considered for targeting. Needs and conditions of all eligible neighborhoods are evaluated in the process. Target areas are chosen through a process that coordinates recommendations of Community Development, Services Board members, neighborhood associations, citizens, and the City Council.

North Loop Boundaries
North Loop 289 – MLK Blvd. –
Ursuline St. – Ash Ave.

East Loop Boundaries
East Loop 289 – 4th St –
Idalou Highway

Ave. Q Boundaries
Ave. Q – 30th St. – Ave. L – 42nd St

Amherst Boundaries
Amherst St. – University Ave. – Santa Fe Dr. -
North Detroit – 2nd St. – Indiana Ave.

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 $33,000
2 $37,700
3 $42,400
4 $47,100
5 $50,900
6 $54,650
7 $58,450
8 $62,200

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.