Housing Rehabilitation: Loans to Qualifying Low Income Households

Community Development Block Grant Program (CDBG)

The Community Development Block Grant (CDBG) Program provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended 42 U.S.C. 5301 et seq.

CDBG Homeowner Rehabilitation Loans Available to Qualifying Low-income Households* 

The home must be located within Marion County, but outside the city limits of Salem, be the primary residence of the borrower, and not used as a rental or vacation home.  

  • Zero percent (0%), partially forgivable, deferred payment loans up to $50,000  
  • The loan can be used for repairs such as roofing, windows, structural repairs, HVAC systems, replace a water heater, accessibility improvements, etc. 

 *The program is subject to local HUD income limits based on household size. 

  • For current income limits go here.  
  • To apply, use this link.       
  •  For questions regarding requirements and eligibility, please contact John Schmidt at (503) 540-1640 or jschmidt [at] mwvcog.org


Valley Development Initiatives, a private non-profit affiliate of MWVCOG, administers housing rehabilitation loan funds in Aumsville, Aurora, Detroit, Gates, Gervais, Hubbard, Idanha, Jefferson, Silverton, Stayton, Turner, Mt. Angel, Woodburn and the unincorporated areas of Marion County. Funded by Community Development Block Grants from Infrastructure Finance Authority of Oregon Business Development Department, the program offers low interest, deferred payment loans to eligible homeowners for repairs.

Goals of the Housing Rehabilitation Loan Program are:

  1. To alleviate health and safety problems and correct city code violations and structural deficiencies in homes
  2. To conserve and improve existing affordable housing stock
  3. To increase housing opportunities for low and moderate income households
  4. To enable lower income residents to remain in their homes, particularly those with disabilities

General Eligibility:

  • Residence must be within Marion County or appropriate city limits
  • Household income is less than 80% of the area median income for the county
  • Acceptable debt to income ratios
  • Maximum loan-to-value ratio is 85%
  • Property taxes must be current

Income Eligibility:

Household Size 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 8 Persons
Income Limit* $46,900 $53,600 $60,300 $66,950 $72,350 $77,700 $83,050 $88,400


*Effective April 1, 2022. Total gross income includes, but is not limited to, the following: wages, salaries, tips, commissions, self-employment income, interest, net rental income or income from estates or trusts, dividends, social security benefits, pensions, annuity income, alimony, child support, welfare payments and other public assistance programs, veteran’s benefits, disability benefits, stipends, or living allowances.

Eligible Repairs:

  • Health and safety issues
  • Electrical and plumbing upgrades
  • Structural repairs
  • Heating systems
  • Roofing
  • Siding
  • Weatherization
  • Handicapped accessibility
  • Pre 1978 housing must comply with HUD’s Lead Based Paint compliance requirements

Questions on the program should be directed to John Schmidt

Associate Project Manager - Grant Administration Specialist