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1. Structural alterations and reconstruction (repair or replacement of structural damage, chimney repair, additions to the structure, installation of additional bath (s), skylights, finished attics and/or basements, repair of termite damage and the treatment against termites or other insect infestations)
2. Changes for improved functions and modernization (remodeled bath and kitchens, including installed appliances)
3. Elimination of health and safety hazards (including the resolution of defective paint surfaces or lead-based paint problems on homes built prior to 1978)
4. Changes for aesthetic appeal and elimination of obsolescence (new exterior siding, adding a second story, covered porch, stair railings, attached garage)
5. Reconditioning or replacements of plumbing (including connecting to public water and/or sewer system, if feasible), heating, air conditioning and electrical systems. Installation of new plumbing fixtures is acceptable, including whirlpool bathtubs
6. Installation of Well and/or Septic System. The well or septic system must be installed or repaired prior to beginning any other repairs to the property. A property less than 1/2 acre with a separate well OR septic system is not acceptable. A property less than 1 acre with both a well and a septic system is not acceptable. The
installation of a new (or repair to an existing) well can be allowed, provided there is adequate documentation to show there is reason to believe the well will produce a sufficient amount of potable water for the occupants
7. Roofing, gutters and downspouts
8. Flooring, tiling and carpeting
9. Energy conservation improvements (new double-pane windows, steel insulated exterior doors, insulation, caulking and weather-stripping, solar domestic hot water systems)
10. Major landscape work and site improvements, patios, decks and terraces that improve the value of the property equal to the dollar amount spent on the improvements or required to preserve the property from erosion. The correction of grading and drainage problems is also acceptable. Tree removal is acceptable if the tree is a safety hazard to the property. Repair of existing walks and driveway is acceptable if it will affect the safety of the property. Fencing, new walks and driveways, and general landscape work [trees, shrubs, seeding or sodding] may be included.
11. Improvements for the accessibility to the Handicapped (remodeling kitchens and baths for wheelchair access, lowering kitchen cabinets, installing wider doors and ramps, etc)
12. When basic improvements are involved, the following costs can be included in the minimum $5000 requirement: 1. New freestanding range, refrigerator, washer and dryer, trash compactor and other appliances (Used appliances are not eligible); 2. Interior & Exterior painting; 3. The repair of swimming pool -- not to exceed $1,500; 4. The installation of a new swimming pool is not allowed
13. Luxury items and improvements, that do not become a fixed part of the real property, are not eligible as a cost of rehabilitation. These include among other things - barbecue pit, bathhouse, dumbwaiter, exterior hot tub, sauna, spa and whirlpool bath, outdoor fireplace or hearth, photo mural, installation of a new swimming pool, gazebo, television antenna, satellite dish, tennis court, tree surgery, additions or alterations to provide for
commercial use of property
REQUIRED IMPROVEMENTS
All rehabilitation construction and/or additions financed with the 203(k) mortgage proceeds must comply with the following and must be performed by a contractor acceptable to the
Mortgage Company:
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