What is "Section 504"?

The USDA wants to help qualifying low-income Naples homeowners repair or modernize their homes. In the past, the USDA has helped Naples and area homeowners replace their roofs, fix septic systems and wells, replace windows, add insulation, and undertake other crucial repairs and modernizations.

Section 504 help is available in the form of 1% loans (for residents ages 18-61) or grants of up to $7,500 (for qualifying residents ages 62 or over who are unable to repay a Section 504 loan). Section 504 can't be used for income properties (rentals).

Whether you live in the Town or the Village, your income may qualify you for Section 504!

Section 504 Basics

Your income determines your eligibility for Section 504 assistance. Qualifying "very low income" levels in Ontario County for 2013 are as follows:

Family Size: 1 2 3 4 5 6 7 8
Qualifying Income: $24,050 $27,500 $30,950 $34,350 $37,100 $39,850 $42,600 $45,350

More About Section 504 Help

 Loans are typically 20-year terms at a 1% fixed interest rate payable monthly.
 Terms may be for shorter periods when no grant funds are involved.
 Monthly payments for a 20-year term are $4.60 for each $1,000 borrowed.

Here are some helpful examples of monthly payments:

Amount Borrowed Monthly Payment
$1,000 $4.60 / month
$5,000 $23 / month
$10,000 $46 / month
$15,000 $69 / month
$20,000 $92 / month

For elderly households who are considering applying just for grant funds: your budget must indicate that you can't afford these loan terms, for your repair needs or any portion of them.

Are Section 504 Loans Secured?

 Loans up to $7,500 are secured only by a promissary note. A good credit history is required.
 Loans greater than $7,500 need to be secured with a promissary note and a mortgage deed.

I Think I Might Qualify. How Do I Start?

If you live in Ontario County, just contact our friendly regional USDA Rural Development representative by phone or by email.

Cynthia S. Newcomb
Area Specialist
3037 County Road #10
Canandaigua, NY 14424
Phone: 585-394-0525 extension 105
Email: Cynthia.newcomb@ny.usda.gov
Web: www.rurdev.usda.gov/NYHome.html

Got Any More on Section 504?

Yes — just take a look at this handy USDA PDF file for more information.