The USDA Section 504 loan/grant program helps very low-income owner occupants of modest single family homes in rural areas repair their homes. Loan funds are available for repairs to improve or modernize a home, make it safer or more sanitary, or remove health and safety hazards. For homeowners 62 and over who cannot repay a loan, grant funds are available to remove health or safety hazards or remodel dwellings to make them accessible to household members with disabilities.
USDA makes the final determination for all of the applications that are submitted to their organization. The Roanoke Construction Group, a division of Roanoke Electric’s nonprofit affiliate, The Roanoke Center, is available to assist with completing pre-qualification applications. They’re also available to assist with energy efficiency retrofits upon approval. Please contact the Roanoke Construction Group at 252-539-4605 to apply.
Restrictions on the Use of 504 Funds
Section 504 loan or grant funds cannot be used to:
- Assist in the construction of a new dwelling;
- Make repairs to a dwelling in such poor condition that when the repairs are completed, the dwelling will continue to have major hazards;
- Move a mobile home or manufactured home from one site to another;
- Pay for any off-site improvements except for necessary installation and assessment costs for utilities; Refinance any debt or obligation that the applicant incurred before the date of application (except for payment of the installation and assessment costs of utilities);
- Purchase or install equipment in the property (e.g., ranges, refrigerators, washers or dryers);
- Pay packaging fees to for-profit entities;
- Provide site preparation (e.g., grading, foundation plantings, seeding or sodding, trees, walks, yard fences, or driveways to a building site);
- Construction of new decks (existing decks may be repaired if a safety hazard exists);
- Installation of concrete or asphalt driveways; or Landscaping.
Repairs to Mobile or Manufactured Homes
Section 504 loan and grant funds can be used to repair mobile or manufactured homes if:
- The applicant owns the home and the site and occupied the home prior to filing an application;
- The repairs are needed to remove health or safety hazards; and the home is on a Permanent foundation, or will be put on a permanent foundation with Section 504 funds.