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Building, Housing & Planning Department

Posted on: April 7, 2020

COVID-19 POLICIES & PROCEDURES FOR CURRENT HUD LOANS

Due to the COVID-19 Pandemic, it may be necessary to allow for deferment on current HUD loans.  The following policies will be in place to allow for this:

  • The City of Lorain will place the Notice of Deferment Availability on its website and will also place a notice on or in the monthly invoices that are sent out to each loan holder.
  • Loan holders that have been impacted by the COVID-19 Pandemic are eligible to receive a two (2) month deferment upon approval.
    • The monthly payments will be deferred for two (2) months.
    • Interest will not accrue during this two (2) month period.
    • Late fees will not be assessed during this two (2) month period.
    • In order to be eligible for this deferment, the following information will be required:
      • Homeowner Loans
        • Notice of layoff or termination or
        • Written explanation of the impact the COVID-19 Pandemic has had on the homeowner (higher risk, elderly care, exposed, etc.)
      • Business Loans
        • Written explanation of the impact the COVID-19 Pandemic has had on the business (layoffs, decline in business, closure, etc.)
  • The request will be reviewed by the City of Lorain Loan Committee (BHP Director, BHP Finance Officer, Safety/Service Director, and Law Dept.). 
  • Upon approval, a Loan Modification Agreement will be created stating the terms of the deferment.  This agreement will be sent to the loan holder for signature.  The loan holder will need to return the signed Loan Modification Agreement to the City of Lorain, Building, Housing & Planning Department for execution.  Once signed by all parties, a copy will be forwarded to the loan holder and the original will be placed in the loan file.
  • At the conclusion of the deferment period, regular invoices will resume with the required monthly payment due.

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