Frequently Asked Questions

What types of loans are available?

Loans are made available in amounts from $1,000 up to $30,000 (total loan inclusive of all fees). This program offers 0% or 3% deferred payment loans and 3% amortizing loans depending on the income of eligible households.  Some landlords may be eligible for a 3% loan for a tenant with a disability.

• Deferred payment: A deferred payment loan (DPL) requires no payments, other than interest as may be applicable, during the lifetime of the loan.   Repayment of a 0% DPL is made only when the property is sold or transferred, or if any condition of the loan agreement is not met.  Repayment of a 3% DPL requires only payments of interest until loan maturity at which point repayment of the principal is due.   
• Amortizing loans: Amortizing loans require monthly payments on principal and interest.

The repayment period for 3% loans ranges from 5 to 15 years depending on the size of the loan.

What kinds of modifications are eligible?

Some examples include:

• Ramps
• Lifts
• Widening of doorways
• Kitchen and Bathroom modifications
• Accessible flooring
• Air filtration systems
• Home security features such as specialized locks and alarms

Please contact the regional Provider Agency to discuss other eligible modifications.

Do I need to have modification plans before I apply?

Modification plans are not required before you apply, but should be included if you have them.  When planning a home modification it is helpful to think of the current accessibility needs of the beneficiary, as well as accessibility needs that the beneficiary’s disability might present in the future.

Who will do the actual work to modify the home?

Homeowners hire the designer and/or contractor of their choice to modify the home.   Homeowners then must give the Provider Agency a copy of the contractor’s license, certificate of insurance and the bid and specifications for the modifications.  Provider Agencies cannot recommend specific contractors or other professionals but they can provide some resources which can guide you as to how to find and select a contractor.  See our Resources page for additional information.

What should I expect during construction?

• You are responsible to ensure that all permits for construction are acquired before work begins.

• When the work begins, keep your copy of the contract handy and refer to it often.
• If something is not going the way you feel it should or if you do not understand it, speak directly to the contractor.  If the problem is not resolved to your satisfaction, notify the Provider Agency before work progresses too far.  Provider Agencies may be able to refer you to resources which may help resolve the situation.  Information can also be found at the state’s Consumer Affairs department.

May I do any of the work myself?

If the borrower is a licensed contractor, they may be allowed to do the work themselves in order to maximize the value of the loan funds.   This is referred to as Self-help.  In such cases, the HMLP funds can be used to pay for the cost of materials but cannot be used to pay for the borrower’s or the borrower’s immediate family member’s labor.

May I get reimbursed for work completed prior to application approval?

NO.  This program does not provide reimbursement for modifications completed prior to loan approval. 

Can a landlord apply for a loan to modify a rental unit?

A landlord who has an identified tenant with a disability or plans to have an identified tenant with a disability may apply for the loan. As in the case of a homeowner loan, the modifications to be made must be documented and must relate to the tenant’s (beneficiary) functional needs. A landlord owning fewer than 10 units in the building may apply for a Home Modification loan at 3% interest.

NOTE: Any landlord with a unit in a building of 10 or more units is required to make modifications under MGL Paragraph 7A, Chapter 151B Section 4 and is NOT eligible for Home Modification Loan Program. If, however, a landlord can prove hardship through litigation under this statute, application may be made to the Home Modification Loan Program.

Whom Do I Contact?

You can contact the Provider Agency in your region or Susan Gillam at MRC at 617-204-3739.  Visit our web site: www.mass.gov/mrc/hmlp.