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Improving a Home - Indoor Plumbing Program

Purpose of Program

The purpose of the Indoor Plumbing Program (IPP) is to provide indoor plumbing in residential properties.

 

Eligible Types of Housing

Loans may be made for single-family, owner-occupied houses and rental properties with one to 100 units, which do not have indoor plumbing. Properties must be structurally sound.

 

Eligible Applicants

Owner-occupants of single-family homes who are income eligible may apply for IPP loans. Owners of rental residential properties may apply for IPP loans, if the units will be occupied by income-eligible households.

 

Eligible Residents

Owner-occupants of single-family homes and all residents of assisted rental housing must have an income at or below 80 percent of the statewide or Washington, D.C. MSA median income. The interest rates for these loans is a minimum of 4.5 percent and is determined based upon the owner-occupant's ability to repay the loan, or for rental units, the project's income available to repay the loan.

 

Loan Terms

Loans have interest rates based on the incomes of the residents and owner-occupant, or project income available to repay the loan. Generally, the maximum loan amount is 95 percent of the value of the property. Loans in excess of $5,000 or with deferred payments are secured by a mortgage. Loans may provide for deferred payment of principal and interest for households with incomes below 50 percent of the statewide or Washington, D.C. MSA median income if necessary for project feasibility.

Deferred amounts or portions of deferred amounts may be forgiven on an annual basis if the loans serve families with incomes below 30 percent of the statewide or Washington, D.C. MSA median income. The maximum loan term is 30 years.

 

The following improvements that help provide indoor plumbing may be financed:

  • wells

  • septic tanks and drain fields

  • piping from the septic sytem into the resdential building

  • connection fees and assessments

  • plumbing fixtures and equipment, including handicapped fixtures

  • additions, modifications and alterations required to provide private space for toilet and bath facilities

  • sand mound systems

  • purification systems

  • cost of percolation tests

  • alternative and innovative septic and water systems

Local Government Involvement

Generally, all loan requests are processed directly by local governments for properties within their jurisdiction.

 

How To Apply

Applicants should contact their local housing office or DHCD's Single Family Housing at 410-514-7565 (within the Baltimore area) or 1-800-638-7781.

IPP loans are originated, packaged and closed by the Maryland Department of Housing and Community Development Special Loan Program's (SLP) network of local administering agencies. The network includes the county housing and community development offices as well as nonprofit organizations and local banks.

 

Click here for a list of local contacts by County

 

Two agencies that serve as outreach agents for IPP:

Tri-County Community Development Corp., Inc. for Calvert, Charles, and St. Mary's Counties- 301-274-4474
First Shore Federal Savings and Loan for Wicomico and Worcester Counties- 410-546-1101

 

For More Information, Contact:

 

Single Family Housing
Community Development Administration
Maryland Department of Housing and Community Development
100 Community Place
Crownsville, MD 21032-2023
singlefamilyhousing@dhcd.state.md.us
410-514-7530
Toll Free (Maryland Only): 800-638-7781
TTY 410-514-7531

Related Links

Local Contacts By County

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