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Officials outline options for CDBG liens when homeowners die: transfer to eligible family or board waiver
Summary
Staff explained CDBG-assisted homes carry recorded liens that amortize; if a homeowner dies the lien can be transferred to an eligible family member, waived by the board, or recaptured to the state program if sold, with staff recommending deeded residency be a condition of transfer.
A committee member asked how the program treats a homeowner death mid-liability period. The staff member said the program records a lien that reduces (forgives) over time and described options: transfer to an eligible family member who will occupy the home, or the board can waive the remaining lien. The staff member said, "you can choose to waive it or, like, no, man. You still got 8 years left on that DPL," and added the transfer must be deeded and the transferee must qualify under program income rules.
Staff and committee members discussed that transfers to family members can preserve the program's affordability goals if the family member qualifies; they also noted that if the property is sold for profit to an ineligible buyer the recapture purpose of the grant would be defeated. The committee agreed the board retains discretion to hear petitions and decide whether to waive or require repayment on a case-by-case basis.
