SCHAP

What is SCHAP?

The Parodneck Foundation's Senior Citizen Homeowner Assistance Program (SCHAP) provides financial assistance to senior citizen homeowners who are living in physically deteriorated housing or who are in danger of losing their homes to foreclosure.  The program, which has been in operation since 1986, provides no- and low-interest loans and extensive technical assistance to qualified seniors.  This support enables seniors to retain their homes and improve their living conditions, thereby helping them avoid financial insolvency, displacement, and/or loss of independence.   To date, the SCHAP program is the only affordable financial and home improvement program in New York City targeted exclusively to low income senior homeowners.  Since 1986, SCHAP has assisted over 1,000 homeowners(see map for locations-SCHAP Loans 1986-2006)

Who is eligible for assistance through SCHAP?

To be eligible, a senior must reside in any of the five boroughs in the City of New York, be at least 60 years old, and have been an owner-occupant of a one- to four-family home for at least two years.   Homes must have property and liability Insurance.  Seniors household incomes, including rental income, cannot exceed the income area median income.

What services does SCHAP offer?

Senior-Help Deferred/Forgivable Loan Program:  This program provides interest-free loans that can be used to cover the costs of home improvements.  Because this is a deferred loan, there are no monthly payments.  Ten percent of the loan, and all fees, are forgiven after the first year.  If the borrower is still living in the home after 30 years the balance of the loan is forgiven, provided that the borrower is in compliance with the terms and conditions of the loan agreements.  The loan is payable in full if the house is sold or ownership is transferred, if the borrower moves out, or upon death of the borrower.   A processing fee (10% of the construction amount), a $250 legal fee, and a $750 engineering fee are added to the loan amount at closing.

Senior-Help Repayment Loan Program:  This program provides low-interest (0-3%) repayment loans that can be used to cover the costs of home improvements.  These loans are repaid monthly over a thirty-year period.  The loan is payable in full if the house is sold or ownership is transferred, if the borrower moves out, or upon death of the borrower.  A processing fee (10% of the construction amount), a $250 legal fee, and a $750 engineering fee are added to the loan amount at loan closing.

The Parodneck Foundation Revolving Loan Fund Program:  This program provides low-interest (0-6%) repayment loans that can be used for repairs or for payment of real estate taxes, mortgage arrears, and legal or architectural fees and other professional services related to the senior's home.  These loans, which are made on a case-by-case basis, generally do not exceed $10,000.   The 5% processing fee can be included in the loan.

Predatory Lending Remediation Loan:  If a senior has been taken advantage of by a broker/mortgage company, and is in financial debt or foreclosure, and have repair problems, they may be eligible for assistance through the remediation program.  The program provides qualified applicants a financial package that includes a bank loan, a deferred home improvement loan, and a deferred loan from the City of New York.  As a condition of these loans, the senior may be required to participate in budget counseling and/or the use of a trustee or community agency to help manage the loan.

Requirements to be Eligible for Support through the SCHAP Program

  • The applicant must be a least 60 years old.
  • The applicant must be an owner-occupant of a building with no more than four units.   (This program does not provide funds to repair recently purchased homes.  Therefore, a minimum two (2) year period as owner/occupant is required.)
  • Income cannot exceed 120% of the area median income.  In 2006, the limits are: $59,600 for a one-person household, $68,000 for a two-person household, and 76,600 three-person household.   Income adjustments are made for larger households.

Required Documents

  1. Proof of age (example: copy of birth certificate, pension or social security documentation, drivers license or passport).
  2. Proof of current personal and rental income for all members of the household (copies of W2 forms, tax returns, pension or social security award letters).  If rental units are present, copies of rent receipts or a copy of the lease must be submitted.
  3. Copies of both sides of the filed deed.  (If another name in addition to the senior's appears on the deed, that person must sign loan documents.  If one of the parties is deceased, a copy of the death certificate is required.)
  4. Copy of picture identification for each person that must sign loan documents.
  5. Copies of any Mortgages(s)and/or Satisfaction(s) of Mortgage(s).  Mortgage status information (current) must be obtained for all recorded mortgages.  The senior must sign one Mortgage Information Release Form (attached at back of application) for each mortgage.
  6. Copies of current fuel and utility bills.
  7. Copy of home insurance policy (a property must have liability and property insurance).
  8. Copies of real estate tax and water & sewer tax bills.

SCHAP interviews applicants and reviews their documentation to determine eligibility.  If an applicant meets all requirements, a Parodneck Foundation staff member will inspect the senior's home to determine what home repair/improvement work is necessary.  The staff member then prepares a scope of work, which is sent to the borrower, who in turn will present it to licensed contractors for free written estimates.  A minimum of three estimates is required.  After a contractor is chosen and all documentation is in place, the loan is closed and mortgages are filed.  All home repairs are then carried out by the contractor.  The SCHAP staff visit the site several times before and during construction.  If the repairs meet approval, final payment is authorized.

More Information

For more information or an application, contact:

The Parodneck Foundation
(212) 431-9700 ext. 300
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