OHFA Lead Paint Safe Pilot Loan Program for Qualified Toledo Homeowners
For a limited time, the Ohio Housing Finance Agency (OHFA) in collaboration with Huntington National Bank is offering low-interest home repair loans for homeowners living in eligible census tracts in the City of Toledo and whose homes may have potential lead paint hazards to help pay for the costs to make their homes Lead Safe.
Lead Safe means making sure a home does not pose a lead risk before a child could be poisoned. A home is lead safe when lead risks – known as lead hazards - have been controlled so that the concentration of leaded dust remains below the threshold set by the U.S. Environmental Protection Agency. This means a lead safe home is no longer hazardous but may still contain lead.
The Lead Paint Problem
Lead exposure, as small as a single grain of sugar per day, can lead to traumatic health outcomes for children and families. Because the majority of Toledo’s housing stock was built before 1978, Toledo residents have inherited a large, toxic legacy of lead paint. Every year, hundreds of Toledo children test high for lead in their blood, 5 μg/dL or greater. There is no safe level of lead in the bloodstream. 5 μg/dL represents the highest 2.5% of children ages 1-5 in the entire U.S. population. You can read more about elevated blood lead levels on the CDC’s website [Toledo Lead Poisoning Prevention Coalition]. If you live in house built before 1978, you and your family are at risk of being exposed to lead paint.
Possible Signs and Symptoms of lead poisoning in children are:
- Developmental delay
- Learning difficulties
- Loss of appetite
- Weight loss
- Sluggishness and fatigue
- Abdominal pain
- Hearing loss
- Eating things, such as paint chips, that aren’t food (pica)
Lead poisoning affects young children and pregnant women most severely, and the damage can last the rest of that person’s life. There is no cure for lead poisoning, though some treatment options are available. If you suspect you or your child is suffering from lead poisoning, consult your doctor immediately and request a test. The Toledo Lucas County Health Department also performs lead testing.
Loan Amount Limits
Minimum Loan Amount: $4,000
Maximum loan Amount: $15,000
Eligible Uses for Loan
Costs for interim lead paint hazard control repair measures to make a home Lead Safe, together with related inspection(s), clearance costs and closing costs.
A lead paint assessment prepared by an Ohio licensed lead risk assessor is required prior to loan underwriting in order to determine the scope of work and loan size.
Repair measures may include paint film stabilization (repainting), treatment to minimize friction, treatment to prevent impact, cover to prevent chewing, specialized cleaning, and covering/restricting access. 100% lead paint abatement is not required unless no viable alternatives are identified in the lead paint assessment.
An EPA Lead Renovation, Repair, & Repainting (RRP) certified lead safe worker, or a lead abatement contractor can complete the interim lead paint hazard control repair measures. A lead abatement contractor maintains a higher level of certification, but all of their services are not required for lead safe remediation. Remember to ask for proof of certification, bonding and insurance when searching for a contractor.
Relocation expenses of the owner occupants during the repair work in order to protect the occupants are also eligible for reimbursement.
Loan Interest Rates
- For borrowers with incomes at or below 80% AMGI, minimum interest rate = 1%
- For borrowers with incomes between 80% AMGI and 120% AMGI, minimum interest rate = 1.5%
- [final rate dependent on total housing cost ratio]
All loans require monthly payments amortized over 10 to 20 years depending on loan amount and borrower's income.
- For loan amounts between $4,000 and $10,000, a loan term and amortization period up to 10 years is allowable.
- For loan amounts between $10,000 and $15,000, a loan term and amortization period up to 20 years is allowable.
Loan term, interest rate and amortization period shall be modified so that a borrower's total monthly housing costs will not exceed 30% of monthly income.
1 unit owner occupied structures built before 1978 and located in a high lead poisoning risk census tract defined by the city of Toledo – see below for a list of eligible census tracts.
Borrower income shall not exceed 120% of the 2021 Area Median Gross Income for Lucas County.
|Household Size||80% AMI||100% AMI||120% AMI|
Home Equity Requirement
Borrowers must currently have unrestricted equity in their home. The combined loan to value including the OHFA lead paint safe loan and existing first mortgage may not exceed 105%. Borrowers with incomes at or below 80% AMGI are not required to obtain an appraisal of the property and may rely on the most recent appraisal conducted by the county auditor. Borrower also has the option to order an as-is appraisal to confirm home value. As –approved appraisals are required for borrowers with incomes greater than 80% AMGI and loan amounts of $10,000 or more.
- Debt to Income (DTI) ratio may not exceed 43%.
- Minimum FICO score of 640 is required.
- Borrowers must document on-time first mortgage payments for the last 12 months and must be current with all payments.
Maximum Cumulative Loan to Value (CLTV)
Borrowers must currently have unrestricted equity in their home. The CLTV including the OHFA lead paint safe loan and existing first mortgage may not exceed 105%. Borrowers with incomes at or below 80% AMGI are not required to obtain an appraisal of the property and may rely on the most recent appraisal conducted by the county auditor. As –approved appraisals are required for borrowers with incomes greater than 80% AMGI and loan amounts of $10,000 or more.
Second mortgage on the property.
Lead Paint Clearance Requirements
After work is completed and prior to funding the loan, the home must pass a lead paint clearance examination in accordance with standards prescribed in rules adopted under O.R.C. 3742.03 or O.R.C. 3742.45 a lead clearance examination. The examination must be performed by an Ohio-licensed lead risk assessor, lead inspector, or clearance technician.
Eligible homeowners may apply for a loan at the Huntington National Bank Branch listed below beginning on June 19, 2021 through December 31, 2021. Funding is limited and the program will end after December 31, 2021.
|Toledo Corporate||519 Madison Ave.||Toledo||43604|
|Point Place||5201 N. Summit St.||Toledo||43611|
|Glengate||4773 Glendale Ave.||Toledo||43614|
|Heatherdowns||4700 Heatherdowns Blvd.||Toledo||43614|
|Jermain Park||3711 Monroe St.||Toledo||43606|
|Wernerts Corner||2310 Laskey Rd.||Toledo||43613|
|Westgate||3546 W. Central Ave.||Toledo||43606|
|Arrowhead Park||597 W. Dussel Dr.||Maumee||43537|
- State of Ohio Lead Abatement Tax Credit Program, which can be combined with an Ohio Lead Safe Loan
- Toledo Lead Poisoning Prevention Coalition
- City of Toledo Lead-Based Paint Hazard Control Grant Program, which can be combined with an Ohio Lead Safe Loan
- Ohio Searchable database for licensed Lead assessors, contractors, and inspectors.
- Current list of certified local lead inspectors registered with the Toledo-Lucas County Health Department