Springfield Home Improvement Program requirements

The Springfield Home improvement Program (SHIP) has specific requirements regarding eligible properties, household income and equity, and ineligible property improvements.

Property Requirements

  • The property must be within the Springfield city limits.
  • The real property and improvements must be owned and occupied by the applicant.
  • The property must be properly zoned for its current residential use.
  • There must not be any outstanding code violations on the property.
  • Property taxes must be up to date.
  • The applicant must own and occupy the home for a minimum of two years after rehabilitation.
  • Properties may be subject to Federal Lead-Based Paint abatement requirements.
  • The home must meet minimum housing quality standards after rehabilitation is completed.
  • Properties may be subject to City, State and Federal historic structures requirements.

Household Income and Equity Requirements

  • The household must meet the HUD low-income requirement.
  • Certain assets will contribute to household income. Please contact the Housing Programs staff at 726-2358 for questions regarding assets.
  • The SHIP loan will be secured by a lien against the property. There must be sufficient equity in the property to secure the SHIP loan. Available equity is based on the assessed market value or appraised value of the property. The amount of the SHIP loan plus the balance of the existing mortgage (if any) cannot exceed 85 percent of the assessed market or appraised value of the property.
  • There is a loan fee of 7% of the amount of the loan. Payment of this fee is also deferred until the loan is repaid.

Loan terms and Repayment Requirements

  • Most SHIP loans are zero-interest, deferred payment loans. Occasionally, circumstances require scheduled loan payments. Contact the Housing Programs for more information.
  • There is no penalty for early repayment of loans.
  • Loans are deferred until one of the following occurs:
    • Property is sold
    • Property is refinanced
    • Property is deeded or given away
    • Property is passed on to heirs or estate of borrower
    • Property is damaged by fire, flood or other event in which property insurance payments equaling or exceeding the amount of the SHIP loan are expected
    • Property is no longer the primary residence of the borrower
    • Property is turned into a rental property
  • Property must remain in compliance with City codes, ordinances and laws regarding condition, use, zoning or occupancy at all times during the loan period. The borrower shall allow City staff to conduct periodic inspections to monitor compliance.

Ineligible Property Improvements

  • Expansions or additions that increase the living area of the structure
  • Improvements to structures that are separate from the main structure (detached garages, sheds, out buildings)
  • Landscaping and fencing
  • Driveway improvements

This is just a brief overview of the SHIP requirements. For more details regarding program policies and requirements, you may download the SHIP Program Policies or you may call the Springfield Housing Programs at 726-2358.

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City of Springfield, Oregon