Home furnace repairs and central air conditioner repairs are vital for a number of reasons. For example, these HVAC repairs not only help keep your home comfortable in every season, but also help keep your utility bills low, as damaged or otherwise inefficient units can use a considerable amount of energy to function normally. Now, Detroit Mayor Mike Duggan is taking the importance of these services into account as he works improve local conditions and reward homeowners for staying in the area: under a new program, eligible Detroit residents could access anywhere from $5,000 to $25,000 under a zero-interest loan program that would allow them to pay for common home improvements, such as home furnace repairs.
Duggan announced the new loan repair program on Tuesday, March 24 during a press conference at the Joshua Temple Church of God in Christ, located on Detroit’s east side. He told his audience that the project was born out of conflicting realities: while the city government wanted to help local residents stay in their neighborhoods, they didn’t have enough money to create a program on their own. Fortunately, Detroit was able to forge a partnership with Bank of America, which helped the city secure $8 million for financing. The bank has also pledged another $1 million to cover administrative costs over time, while the Local Initiatives Support Corporation and federal block grants will also be used to help fund the program.
The loan repair program targets individual residents with an income of less than $37,950, or families with incomes below $54,150 and credit scores of at least 560. Under the program, eligible participants will have access to a permanent source of funds to finance a variety of home repairs, including plumbing, electrical repairs, home furnace installations, roofing replacement, structural support work, and more. Duggan says these renovations can only help as property values in the city slowly show signs of improvement.
However, the project comes with a few stipulations: first of all, the loans are not for investors, as homeowners must live in the home for at least six months before receiving funding. Recipients must also be current on their taxes and insurance. Moreover, the loan must be paid back within 10 years and use approved Detroit-based contractors. With these requirements, the city hopes to attract residents who might have otherwise been prevented from taking out loans for home furnace repairs and other changes because of the potential effect on their credit score, a consequence this program will not have. s
Detroit residents can print an application online at www.detroithomeloans.org, which can then be taken to one of 14 intake centers around the city. The city is also offering financial consulting services for those who don’t meet the credit score minimum.