City of Boston Repair Loan -- HomeHELP

[Maureen F.]

City of Boston has a repair loan for owner-occupants of 1-3 family properties.  Maximum is 10K or 20K depending on owner's income.  0%, no monthly payments, up to 33% forgiven in five years, balance due upon sale or refinance.  Besides the income limits, a caveat is that you agree not to condo-convert for 10 years.  (For details visit the Boston Home Center, Department of Neighborhood Development.)  I'm finding it difficult to get answers over the phone, such as, how payments are released.  I wouldn't mind paying the contractor directly out of pocket and then getting reimbursed from the loan, however the website says they will mail the City check directly to the contractor after making their final inspection.  I have a very good price from a very good contractor and don't want to lose him over logistics -- he's asked for 30% upfront and the balance upon completion, which usually means immediately upon completion, from my experience.  Has anyone used this program and how was the experience?  If not, any comments on how repair loans work in general would be greatly appreciated.