AHILP Application

The Allegheny Home Improvement Loan Program (AHILP) application process includes home inspection (and lead testing, if applicable), contractor selection/bid submission, and loan closing. AHILP will assist applicants every step of the way.

Loan Application

Complete the application and provide the required household income documentation.

Download the AHILP application(PDF, 283KB)

AHILP staff or a participating lender will review the application and supporting documentation for completeness. Eligible applicants will proceed to the next step.

Home Inspection

Code Compliance

A Construction Advisor will contact eligible applicants to schedule an initial home inspection. This is a homeowner-friendly process. The Advisor prepares a Property Evaluation Report detailing any required code-compliance work and reviews this report with the applicant.

Lead-Based Paint Hazards

If the report identifies chipping or peeling paint, or a painted surface that may be disturbed during home repairs, an additional inspection for lead-based paint hazards may be required (for homes built before 1978). See Housing and Urban Development (HUD)'s Lead-Safe Housing Rule for more information regarding pre-rehab lead testing.

If lead-hazard control is required, the applicant will need to choose a contractor trained in lead-safe work practices.

Contractor Selection/Bid Submission

Homeowners should not undertake the proposed work themselves. Be sure to hire a professional, insured contractor.

Professional home improvement contractors span a wide range of capabilities and specialties. Be thorough and cautious in hiring a contractor. A little time invested up front can save much anxiety later on.

  • Seek recommendations from those who have undertaken similar projects. Ask about any complaints, and ask to see the finished job.
  • Try to get at least three bids. Remember, the least expensive is not always the best.
  • Ask prospective contractors for the names and phone numbers of a supplier and at least three previous customers, then call those references.
  • Determine if the contractor uses subcontractors. Check the subcontractors' references also.

Loan Closing

After the Construction Advisor has reviewed and approved the contractor's proposal and all other construction-related documents, an AHILP staff person will contact the homeowner to schedule the loan closing.

Work Begins

Three business days after loan closing, the selected contractor can begin work.

Contractor Payment Procedures

AHILP is responsible for issuing payments directly to the contractor upon completion of various stages of work.

The contractor will request a stage inspection. The Construction Advisor will visit the property to inspect the completed work with the homeowner. The Advisor will fill out the invoice for payment form, to be approved by the homeowner.

By signing the invoice, the homeowner approves the work completed and grants permission to AHILP to release payment to the contractor.

Contractor Payment Schedule

Based on the total cost of the project, contractor disbursements are typically issued as follows:

  • Less than $3,000: One final payment is issued upon completion
  • $3,000–$10,000: One partial payment and one final payment
  • More than $10,000: Two partial payments and one final payment

All stage payments will be no more than 80% of the amount due, subject to inspection and approval of the work by the Construction Advisor and homeowner. The amount retained is released at final payment.

Any changes in the work (Change Order) must be signed by the contractor and approved by the homeowner and AHILP prior to the changes being incorporated into the project. Unapproved changes will not be considered for payment.

Any work started prior to the loan closing and the issuance of the Proceed Order will not be considered for payment.

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