SUBCHAPTER 1L - GRANTS TO SUCCESSFUL SBA DISASTER HOME LOAN APPLICANTS
04 NCAC 01L .0101
SCOPE
(a) Grants shall be available to homeowners who are approved for a disaster home loan from the U. S. Small Business
Administration (SBA) for damage to their primary residence as a result of Hurricane Floyd. Primary residence is defined
as housing that the homeowner occupies or intends to occupy during the majority of the calendar year. A primary
residence does not have more than 15% of the square footage used in a trade or business and is not used as incomeproducing or investment property.
(b) The residence must be located in one of the counties declared a major disaster as a result of Hurricane Floyd by the
President of the United States under the Stafford Act (P. L. 93-288).
(c) Applications will be accepted until 6 months after the date of the final Federal Emergency Management Agency
(FEMA) registration deadline for damages sustained from Hurricane Floyd.
History Note:
Authority G.S. 1502B-21.1; S.L. 1999-463;
Temporary Adoption Eff. February 18, 2000 to expire on January 1, 2003;
Codifier approved request on December 30, 2002 to extend expiration until January 1, 2005;
Codifier approved request on December 30, 2004 to extend expiration until January 1, 2010;
The Department of Commerce and the Department of Crime Control & Public Safety consider this
rule to be extended and currently in effect pursuant to Session Law 1999-463 Extra Session House
Bill 2, Session Law 2005-1, Executive Order 8 dated July 6, 2001 and Executive Order 75 dated June
10, 2005.
04 NCAC 01L .0102
ELIGIBILITY
(a) The homeowner is not required to finalize the SBA loan in order to be eligible for the state grant. The loan must only
be approved, as documented by an approval letter from SBA.
(1)
Homeowners are eligible for three maximum grant amounts, depending upon age, income and amount
of damage to the primary residence.
(2)
Amount of damage includes only damage to real property. Damage to personal property is not
included in determining eligibility or maximum grant amount.
(3)
Amount of damage is determined by the SBA Loss Verifier as documented on a SBA Verification of
Real Property B Home Report (SBA Form 2056 5-99)
(4)
When one or more of the owners of a primary residence is age 60 or over, as documented on the
application for a SBA disaster home loan, income is not a factor in determining the maximum grant
amount.
(5)
When all owners of a primary residence are under age 60, and the combined annual adjusted gross
income of the homeowners is One Hundred Thousand Dollars ($100,000) or over, the homeowner is
not eligible for a grant.
(b) Regardless of the maximum grant amount for which the homeowner is eligible based upon age, income and amount
of damage, no grant shall exceed the amount of damage to real property of the primary residence as verified by the SBA
damage assessment.
History Note:
Authority G.S. 150B-21.1; S.L. 1999-463;
Temporary Adoption Eff. February 18, 2000 to expire on January 1, 2003;
Codifier approved request on December 30, 2002 to extend expiration until January 1, 2005;
Codifier approved request on December 30, 2004 to extend expiration until January 1, 2010;
The Department of Commerce and the Department of Crime Control & Public Safety consider this
rule to be extended and currently in effect pursuant to Session Law 1999-463 Extra Session House
Bill 2, Session Law 2005-1, Executive Order 8 dated July 6, 2001 and Executive Order 75 dated June
10, 2005.
04 NCAC 01L .0103
BENEFITS
Benefits are graduated, depending upon age and adjusted gross income of the homeowner and amount of damage to the
primary residence.
(1)
Homeowner(s) age 60 or over and
(a)
Damage assessed at less than Twenty-Five Thousand Dollars ($25,000) - maximum grant
shall be Five Thousand Dollars ($5,000).
(b)
(2)
(3)
History Note:
Damage of Twenty-Five Thousand Dollars ($25,000) and over - grant shall be Ten Thousand
Dollars ($10,000).
Homeowner(s) under age 60, with a combined annual adjusted gross income under Thirty-Five
Thousand Dollars ($35,000).
(a)
Damage assessed at less than Twenty-Five Thousand Dollars ($25,000) - maximum grant
shall be Five Thousand Dollars ($5,000).
(b)
Damage of Twenty-Five Thousand Dollars ($25,000) and over - grant shall be Ten Thousand
Dollars ($10,000).
Homeowner(s) under age 60, with a combined annual adjusted gross income of Thirty-Five Thousand
Dollars ($35,000) or more, but less than One Hundred Thousand Dollars ($100,000) and
(a)
Damage assessed at less than Twenty-Five Thousand Dollars ($25,000) - maximum grant
shall be Two Thousand Five Hundred Dollars ($2,500).
(b)
Damage of Twenty-Five Thousand Dollars ($25,000) or over, but less than Fifty Thousand
Dollars ($50,000) - grant shall be Five Thousand Dollars ($5,000).
(c)
Damage of Fifty Thousand Dollars ($50,000) or more B grant shall be Ten Thousand Dollars
($10,000).
Authority G.S. 150B-21.1; S.L. 1999-463;
Temporary Adoption Eff. February 18, 2000 to expire on January 1, 2003;
Codifier approved request on December 30, 2002 to extend expiration until January 1, 2005;
Codifier approved request on December 30, 2004 to extend expiration until January 1, 2010;
The Department of Commerce and the Department of Crime Control & Public Safety consider this
rule to be extended and currently in effect pursuant to Session Law 1999-463 Extra Session House
Bill 2, Session Law 2005-1, Executive Order 8 dated July 6, 2001 and Executive Order 75 dated June
10, 2005.
04 NCAC 01L .0104
PROCEDURES FOR HOMEOWNERS
(a) Homeowner(s) shall apply to the designated office in the county in which the primary residence for which the loan
has been approved is located.
(b) The applicant homeowner is required to bring four documents to verify eligibility:
(1)
A drivers license or other form of identification, with photograph;
(2)
A copy of the application completed by the homeowner and submitted to SBA;
(3)
A copy of the damage assessment completed by the SBA Loss Verifier as documented on a SBA
Verification of Real Property B Home Report (SBA Form 2056 5-99);
(4)
A copy of the letter from SBA notifying the homeowner of the loan approval.
History Note:
Authority G.S. 150B-21.1; S.L. 1999-463;
Temporary Adoption Eff. February 18, 2000 to expire on January 1, 2003;
Codifier approved request on December 30, 2002 to extend expiration until January 1, 2005;
Codifier approved request on December 30, 2004 to extend expiration until January 1, 2010;
The Department of Commerce and the Department of Crime Control & Public Safety consider this
rule to be extended and currently in effect pursuant to Session Law 1999-463 Extra Session House
Bill 2, Session Law 2005-1, Executive Order 8 dated July 6, 2001 and Executive Order 75 dated June
10, 2005.
04 NCAC 01L .0105
PROCEDURES FOR COUNTIES
(a) Each of the counties participating in the program shall designate one office B either the county Finance Office or the
county Department of Social Services B to verify eligibility and process grant proceeds.
(b) Designated county staff will review the documents, make copies for audit purposes, and notify the homeowner of the
amount of grant for which they are eligible.
(c) Grant funds will be issued to the homeowner within one week of making application, with all supporting
documentation, to the county.
(d) A notice will be included with all grant checks to inform the recipient that proceeds are subject to federal duplication
of benefits limitations and that the State of North Carolina will inform the SBA that the homeowner has received the
grant.
(e) The county will fax a report weekly to the NC Department of Commerce detailing the name, FEMA teleregistration
number, SBA tracking number, and grant amount issued to all qualifying homeowners.
History Note:
Authority G.S. 150B-21.1; S.L. 1999-463;
Temporary Adoption Eff. February 18, 2000 to expire on January 1, 2003;
Codifier approved request on December 30, 2002 to extend expiration until January 1, 2005;
Codifier approved request on December 30, 2004 to extend expiration until January 1, 2010;
The Department of Commerce and the Department of Crime Control & Public Safety consider this
rule to be extended and currently in effect pursuant to Session Law 1999-463 Extra Session House
Bill 2, Session Law 2005-1, Executive Order 8 dated July 6, 2001 and Executive Order 75 dated June
10, 2005.
04 NCAC 01L .0106
APPEAL
A homeowner may appeal a grant decision to the county manager. If that appeal is not satisfactory, the homeowner may
appeal to the Secretary of Commerce. Decisions by the Secretary of Commerce shall be final.
History Note:
Authority G.S. 150B-21.1; S.L. 1999-463;
Temporary Adoption Eff. February 18, 2000 to expire on January 1, 2003;
Codifier approved request on December 30, 2002 to extend expiration until January 1, 2005;
Codifier approved request on December 30, 2004 to extend expiration until January 1, 2010;
The Department of Commerce and the Department of Crime Control & Public Safety consider this
rule to be extended and currently in effect pursuant to Session Law 1999-463 Extra Session House
Bill 2, Session Law 2005-1, Executive Order 8 dated July 6, 2001 and Executive Order 75 dated June
10, 2005.