Local News

Raleigh to provide loans to tornado victims

Posted June 7, 2011 2:29 p.m. EDT
Updated June 7, 2011 2:51 p.m. EDT

— The Raleigh City Council on Tuesday approved a loan program for local residents whose homes were badly damaged by tornadoes in April.

The council voted unanimously to shift $400,000 from city housing bonds to create the loan fund. Homeowners have 90 days to apply for the loans.

Under the program, low- and moderate-income residents can apply for loans of up to $20,000 to make enough repairs to restore their homes to the city's minimum living standards. Payment on each loan would be deferred until the home is sold or is no longer the principal residence of the borrower.

To obtain a loan, homeowners must have exhausted all other financial assistance, including their homeowner's insurance and federal aid, and be up to date on their mortgage and property taxes. They also must prove that the damage to their homes occurred during the April 16 storms.

Income limits on loan applicants range from $43,550 for an individual to $82,050 for a family of eight.