Homeowner Emergency Loan Program ('HELP') Regulation

Homeowner Emergency Loan Program ("HELP") Regulation, M.R. 89/94 The Housing and Renewal Corporation Act , C.C.S.M. c. H160 Regulation 89/94 Registered May 6, 1994 bilingual version (HTML) Table of Contents Section DEFINITIONS 1 Definitions GENERAL 2 Authorization to make loans 3 Applications ELIGIBLE REPAIRS AND COSTS 4 Eligible repairs 5 Conditions 6 Eligible costs ELIGIBLE RESIDENTIAL UNITS 7 Eligible residential units ELIGIBLE HOMEOWNERS 8 Eligible homeowners 9 Income requirements LOANS AVAILABLE 10 Maximum loan 11 Interest free 12 Loan advances 13 Frequency of loans 14 Other programs LOAN TERMS AND CONDITIONS 15 Promissory note and caveat 16 Loan term LOAN REPAYMENT 17 Minimum monthly payment 18 Interest adjustment date 19 Repayment of loan on sale of residential unit 20 Default in the loan 21 Second loans 22 Coming into force DEFINITIONS Definitions 1 In this regulation, "administration fee" means a fee charged for the cost of (a) registration of a caveat against land in respect of which a loan is made, or (b) registration in the personal property registry under The Personal Property Security Act to perfect the security interest in respect of which a loan is made; (« frais d'administration ») "applicant" means a person who applies for a loan under this regulation; (« requérant ») "eligible homeowner" means a person who is eligible for a loan under section 8; («  propriétaire admissible ») "eligible residential unit" means property that meets the qualifications set out in section 7; (« unité d'habitation admissible ») "loan" means a loan made under this regulation; (« prêt ») "residential unit" means a dwelling, a mobile home or a condominium unit, but does not include the common elements of a condominium plan. (« unité d'habitation ») GENERAL Authorization to make loans 2(1) The corporation is authorized to make loans to homeowners for repairs related to health and safety in accordance with this regulation. 2(2) The corporation is authorized to enter into agreements with respect to any matter relating to the making of loans under this regulation. Applications 3 An application for a loan under this regulation is to be made to the corporation on a form provided by the corporation and must be accompanied by any information, documentation or verification that the corporation may require. ELIGIBLE REPAIRS AND COSTS Eligible repairs 4(1) A loan may be made for eligible repairs. 4(2) Eligible repairs are repairs that are required to bring a residential unit up to a minimum level of health and safety and include but are not limited to repairs related to the following: (a) disability and accessibility; (b) electrical; (c) plumbing; (d) structural; (e) floors and ceilings; (f) heating; (g) roofing; (h) air circulation; (i) steps, stairs and sidewalks; (j) water supply. 4(3) The determination as to whether a repair is one that is required to bring a residential unit up to a minimum level of health and safety is to be made by the corporation. 4(4) The corporation may approve a loan for repairs other than eligible repairs if it considers it appropiate to do so in the circumstances. Conditions 5(1) It is a condition of receiving a loan under this regulation that the eligible homeowner (a) make all of the eligible repairs required to bring the residential unit up to a minimum level of health and safety, in accordance with applicable legal requirements; and (b) complete the eligible repairs in the priority determined by the corporation. 5(2) Eligible repairs for which a loan is made are not to be carried out until the loan is approved, but the corporation may, where it considers there to be exceptional circumstances, approve a loan for repairs completed before approval is given. 5(3) Eligible repairs must be completed within 60 days of the date the loan is approved, unless the corporation, where it considers there to be exceptional circumstances, grants an extension. Eligible costs 6(1) A loan may be made in respect of the following eligible costs: (a) materials; (b) contractor labour; (c) retail sales tax; (d) freight costs where necessary; (e) applicable permit fees; (f) goods and services tax; (g) an administration fee. 6(2) A loan may be made in respect of the costs of an applicant's own labour if (a) the applicant is a contractor or renovator normally employed in the building or renovation industry; and (b) the contract price compares favourably with cost estimates or bids supplied by other contractors. 6(3) An applicant must provide at least two written estimates of the costs required to complete the eligible repairs, unless the corporation is satisfied that it is impracticable to do so in the circumstances. ELIGIBLE RESIDENTIAL UNITS Eligible residential units 7(1) In order for property to qualify as an eligible residential unit, the property must (a) be a residential unit; and (b) have been constructed and occupied more than five years before the application is made. 7(2) In a multiple residential unit property where the owner resides in one of the residential units, the residential unit occupied by the owner is an eligible residential unit in respect only of repairs carried out in the owner-occupied unit, and if repairs are carried out to common elements of that property, a loan may be provided in respect of the common elements on a pro-rated basis. 7(3) A residential unit located on an Indian reserve is not eligible. ELIGIBLE HOMEOWNERS Eligible homeowners 8(1) To be eligible for a loan a person must (a) meet the income requirements set out in section 9; (b) occupy an eligible residential unit on a year-round basis as his or her principal residence; (c) in respect of the land on which that eligible residential unit is located, be (i) the registered owner of the land, (ii) entitled to be registered as the owner of the land under the Veterans' Land Act , (iii) a lessee of the land under a lease from the Crown, or (iv) someone other than the owner of the land who is able to show reasonably long-term uninterrupted occupancy of the residential unit and who is not a renter. 8(2) Notwithstanding clause (1)⁠(c), a person who is the legal owner of a mobile home is eligible for a loan under this section even though the person may not be the owner or lessee of the land on which the mobile home is located. 8(3) When all of the registered owners of land do not reside in the residential unit as their principal residence, a loan may be pro-rated on the basis of the eligible homeowner's interest in the land. Income requirements 9(1) In this section, "core need income threshold" means the core need income threshold based on household composition and location in the province, as determined annually by the Canada Mortgage and Housing Corporation; (« seuil de revenu nécessaire ») "household income" means the income from all sources, less deductions permitted by the corporation, of the eligible homeowner, the spouse of the eligible homeowner and any other occupant of the residential unit for which an application is made. (« revenu du ménage ») 9(2) To be eligible for a loan, a person must have a household income that is equal to or less than the core need income threshold applicable to that household's composition and location in the province. 9(3) The determination as to household income under this section shall be made by the corporation, and the corporation may require an applicant to submit any information that it may request in order to make the determination. LOANS AVAILABLE Maximum loan 10 The maximum amount of a loan is $3,000., excluding administration fees, but the corporation may approve a loan of more than that amount if it determines that the homeowner cannot otherwise carry out the eligible repairs. Interest free 11 Subject to this regulation, the principal amount of a loan must be fully repaid but is interest free. Loan advances 12(1) When a loan is approved, the corporation must obtain and perfect appropriate loan security before making any advances. 12(2) Advances are to be made on the basis of progress inspections of the completed work. 12(3) An eligible homeowner who is required to pay for a portion of the cost of repairs is responsible for and shall make payment directly to the contractor. 12(4) When a loan is approved for materials only, the corporation shall not make any advances until the material has been installed to the corporation's satisfaction. Frequency of loans 13 A person may apply for a loan once in every three years, unless the corporation determines that because of exceptional circumstances relating to health and safety, an application should be permitted to be made more often. Other programs 14(1) When an application is made under this regulation and the corporation determines that the applicant is eligible for assistance under another program, the corporation may deny the application and refer the person to the other program. 14(2) Despite subsection (1), the corporation may approve a loan when, (a) in the opinion of the corporation, assistance under that other program is not available in the immediate future; or (b) the total cost of eligible repairs under this regulation exceeds the assistance available under that other program. LOAN TERMS AND CONDITIONS Promissory note 15(1) The corporation shall not advance monies under a loan until (a) the registered owner or owners of the land on which the residential unit is located; (b) the person or persons entitled to be registered, under the Veterans' Land Act , as owners of the land on which the residential unit is located; (c) the person or persons who are lessees, under a lease from the Crown that has an unexpired term that is not less than the term of the loan, of the land on which the residential unit is located; or (d) the legal owner of a mobile home; has executed a promissory note in a form approved by the corporation engaging to repay the amount of the loan to the corporation, and has agreed to the registration of a caveat against the land or to registration in the personal property registry under The Personal Property Security Act . 15(2) The corporation may register a caveat in the appropriate land titles office against the land on which the residential unit is located giving notice of the corporation's interest, or it may make a registration in the personal property registry under The Personal Property Security Act . Loan term 16 A loan shall be for a term that does not exceed the useful life of the residential unit, but the term must not exceed 10 years from the interest adjustment date determined under section 18. LOAN REPAYMENT Minimum monthly payment 17(1) The minimum monthly payment of the loan is the greater of (a) $20.; or (b) 1/120th of the loan amount. 17(2) Despite subsection (1), the corporation may reduce or waive the minimum monthly payment where it is of the opinion that payment of the minimum monthly payment will be a financial hardship to the eligible homeowner. Interest adjustment date 18(1) The interest adjustment date of the loan is the first day of the month after the final advance of loan funds. 18(2) The regular schedule of repayment of the loan begins on the 1st day of the month after the interest adjustment date. Repayment of loan on sale of residential unit 19(1) If the residential unit for which a loan has been made is sold or the homeowner's continuous occupation is interrupted, the principal amount outstanding becomes due and payable by the eligible homeowner on the date of sale or on the date that occupation is interrupted. 19(2) From the date the principal amount outstanding becomes due and payable under section (1), interest is payable by the eligible homeowner on that amount at a rate equal to the rate charged by the Royal Bank of Canada to its best commercial customers as at the date of default. Default in the loan 20(1) A loan is in default when payment has not been made for 180 days. 20(2) When a loan is in default under subsection (1), interest is payable by the eligible homeowner on the principal amount outstanding from the date of default until the end of the term of the loan, at a rate equal to the rate charged by the Royal Bank of Canada to its best commercial customers as at the date of default. 20(3) When a loan is in default under subsection (1) and interest is payable under subsection (2), the corporation may increase the minimum monthly payment to reflect the interest charges and shall notify the eligible homeowner of the amount of the increased payment. 20(4) When a loan is in default under this section, the corporation may, in its discretion, determine that the principal amount outstanding is immediately due and payable, and in that event the corporation shall notify the eligible homeowner of that fact and the homeowner shall repay that amount to the corporation. Second loans 21(1) Subject to section 13, an eligible homeowner who has received a prior loan under this regulation is, subject to this regulation, eligible to receive a loan a second time if the obligations under the first loan have been met and the payments required to be made are not in arrears. 21(2) If a second loan is made and there is an unpaid balance on a prior loan, the outstanding principal amount of the first loan may be consolidated with the second loan. Coming into force 22 This regulation comes into force on April 1, 1994.