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Homeownership Rehabilitation Program (HRP)
HRP, is now run by the Philadelphia Housing Development Corp. (PHDC). It was formerly operated by the Redevelopment Authority (RDA). HRP provides developers
with a subsidy for the rehabilitation of vacant houses to be sold to
eligible homebuyers. The subsidy is calculated based on the total
development costs minus the market value of the property as determined
by an after-rehabilitation appraisal. The HRP subsidy is paid at the end of the project
when the property is sold. The developer must borrow funds from another
source during construction. HRP pays a developer’s fee of 20 percent
of rehabilitation or a maximum of $15,000. Approvals average 72 days
for developers experienced with the HRP process.
Property selection and acquisition are the
responsibility of the developer. Eligible acquisition sources include but are not limited to private purchases, sheriff sales, HUD and public agencies. Locating and
selecting buyers is the responsibility of the developer. All buyers
must receive prepurchase mortgage counseling from an OHCD-approved housing
counseling agency. For a list of these agencies visit OHCD’s website
at www.phila.gov/ohcd. Income-eligible buyers receive a grant toward
settlement costs after completing counseling.
Application Process
This is an abbreviated application packaged for the program. It contains an 11 page program manual and all the forms necessary to make an application.
The electronic version contains forms that can be modified and completed with a computer. Many forms self-calculate. The manual and forms can be previewed by clicking on the different sections listed on the right.
The complete package has more detail and is only available via email from richard.franck@phila.gov. It contains a 19-page program manual and all forms and checklists used in the program.
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