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Using Forgivable Loan Funds Toward Home Improvements

Forgivable loan funding may be used for home improvements is a reimbursement and is not retroactive.  Reimbursements will be made to license and insured contractors directly if they are going to work in your qualified home. Also, reimbursements can be made directly to employees for items purchased within the appropriate time period or for deposits on contractors' projects.  Eligible employees can receive up to $7,500 (with no interest and no monthly payments) for use towards home improvements including energy audits or retrofit.

  • The forgivable loan funds will be held by the PHOS office and will need to be drawn down by the employees within a year of receiving the loan.  Please contact the PHOS office for additional details regarding this process.
  • The forgivable loan has a forgiveness period of five years.  The employee will need to stay in the home as his or her primary residence for a total of five years, at the end of which time the loan will be completely forgiven. There will be no payments or interest during the five year forgiveness period, should the home remain as your primary residence.
  • The forgivable loan will be a lien against your property and will be recorded with the City of Philadelphia. After a period of five years, the lien will be removed.  Additionally, a deed restriction will need to be signed. Please contact our office to discuss fees associated with the loan.
  • A borrower must meet minimum credit requirements to qualitfy for a forgivable loan. The availability of forgivable loans is subject to the program's annual funding limitations.  The final decision regarding eligibility in the Forgivable Loan Program is at the discretion of Penn Home Ownership Services.

Acceptable type of home improvements are broad in scope and include:







Large Appliances



Energy Audit







Asbestos Removal

Radon Removal

Lead Reduction

The following PHOS forms may be used to facilitate reimbursement to a contractor:

  • Completed W9 Invoice/Estimate/Report
  • Before and After Photographs
  • Contractor License
  • Contractor Insurance
  • Completed Exhibit A (with original signatures)

These forms facilitate reimbursement of home improvements to an individual borrower:

  • Completed W9 (if not already in the BEN system)
  • Invoice/Estimate/Receipts
  • Before and After Photographs
  • Completed Exhibit A (with original signature)