When homes initially rehabilitated with Federal funds needed additional repairs in subsequent years, the city found that it often had to reprocess applicants for a second financing of improvements. The program does not take care of routine maintenance. Instead, homeowners choose which major improvements they wish to have covered under the program. Funding Initially capitalized by a HUD demonstration grant, the Maintenance Reserve Program covers homebuyers helped by Kansas City's Community Development Block Grant, HOME, and HOPE 3 programs. Participation in MRP is optional, and homeowners can pay less if they elect to exclude some items.
Homeowners contract privately for any needed work.
The agency bills them separately for Maintenance Reserve Program premiums twice a year. Combined with a few recordkeeping requirements, these inspections are the only actions required by city personnel, helping it keep administrative and staffing costs very low. Enhancing loan repayment by giving clients another source of emergency repair funds. The key challenge, according to Joseph Egan, administrator of the Maintenance Reserve Program, is putting together a reserve pool of funding to initially capitalize the program. Maintenance reserve programs require some funds at the beginning of the program to capitalize any repairs that homeowners need during the first few years of the program.