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Local Program Administrators

Renovate & Repair loans are provided to eligible homeowners by a PHFA-approved Local Program Administrator (LPA). Eligible Local Program Administrators include but are not limited to the following:

  • County Housing Authorities.
  • Housing Redevelopment Authorities.
  • Community Action Agencies.
  • Community Development Corporations.
  • Housing Development Corporations.
  • Municipalities.
  • Lenders.
  • Other non-profit organizations with related housing experience.

This program is designed to help households with a combined household income no greater than approximately 150 percent of the statewide median income (adjusted upwards in high-cost areas) rehabilitate and/or improve their homes (). Borrowers' ability to repay loans is determined by the LPA either independently or with assistance from a local lender.

Not only does the R&R loan provide an attractive interest rate, it also provides the homeowner with the LPA's help in determining the repairs and/or improvements to be done. In this regard, the program provides much more than a loan–it provides peace of mind in knowing that the right home repairs are done and were completed in a timely manner with quality workmanship. The program is intended to finance renovations to improve the basic livability of the home, as well as repairs to items affecting health, safety, energy efficiency, accessibility, and code violations. Additions, and kitchen and bathroom remodeling are permitted uses of R&R loans, but luxury and purely cosmetic items such as hot tubs, pools, gazebos, etc., are not.

Why offer the R&R Loan?

  • Offers a flexible funding source to local community and housing organizations and lenders to help bolster community development efforts; curb predatory lending; and, improve the critical linkages between contractors, government programs, housing counseling, and Pennsylvania citizens.
  • The program is another source of match and leverage when partnered with existing housing programs.
  • Reach additional constituents.
  • Strengthen partnerships with other organizations.
  • Additional fee income.
  • No cash out.
  • Limited maximum loan amount ($35,000).
  • CLTV 120 percent.
  • Total Debt to Income Ratio 45 percent.
  • Guidance for the Borrower that needs help in prioritizing how to spend the funds.
  • No 'preferred borrower' interest rates.
  • Limited activities: home repair, improvement, or conversion back to single family home.

For more information on the next Information Session contact PHFA at 717.780.3871.

How can my organization offer the R&R loan?

LPAs are approved by PHFA to participate in the program through an open application process. The Invitation to Participate, which includes the application, is available to all interested eligible parties. The application may also be obtained by contacting the Agency at 717.780.3871 or 1.800.822.1174, or in writing to PHFA, Homeownership Programs Division, 211 North Front Street, P.O. Box 8029, Harrisburg, PA 17105-8029.



Memos and Updates

Frequently Asked Questions

My organization would like to learn more about becoming an LPA or Lender. How do we do this?

Invitation to Participate trainings are held throughout the year; contact us at 1.800.822.1174 and let us know you are interested. We are especially looking for coverage where we do not have any LPAs now. Check the Local Program Administrator Web page to see if you are in an area with LPA coverage. More than one LPA in an area is also acceptable to PHFA.

Why are there two ways to close the R&R loan?

PHFA offers two ways to close the loan to meet the needs of both LPAs and Lenders. The loans can be closed in PHFA's name with the LPA submitting the proper documents (Request for Funding) to PHFA the day the loan is closed. The loan can also be closed in the lender's name, allowing the lender to receive consideration for lending credit in their CRA exam. In this case, the mortgage must be assigned to PHFA and this assignment is recorded in the local recorder's office. The Note must be endorsed to PHFA by an authorized officer of the lender. Even if the loan is closed in PHFA's name, lenders can still request consideration for service credit in their CRA exam.

Can Brokers and Third Party Originators participate in the R&R program?

Yes. However, the broker must partner with an organization or organizations that would ultimately fulfill all roles in a partnership at time of applications. These roles include Administrative, Customer Service, Finance, Home Evaluation, and Record-keeping functions.

Are Lenders and LPAs compensated for participation?

Yes, there is $1,300 in compensation built in for LPAs and Lenders. Organizations may split this funding between them as they see fit. In addition, PHFA is paying for many underwriting costs for qualified borrowers, including title/lien search, valuation determinations, flood determinations, recording fee, program participation fee, document preparation fee, and assignment fee, making the lender "whole" more quickly than most loan programs which repay these fees from borrower payments over time.