I have mixed thoughts on the City making loans to residents but I tend to favor this program.
It is far cheaper for taxpayers to give homeowners loans for minor repairs than it is to have code enforcement (or Community Preservation Officers) write tickets and then have the City Attorney file a civil suit against a homeowner.
By doing this, the City is taking a proactive role in combating blighted conditions. These loans may also help prevent the “need” for the Fullerton Redevelopment Agency to condemn properties as part of that Agency’s fight against blight.
Here is the City’s press release:
Does your plumbing leak or your house need a fresh coat of paint? How about other basic safety improvements such as a new roof or repairing faulty wiring or heating to curb high energy costs?
If your answer to any of these questions is "yes," but your checkbook balance says it’s out of the question, don't give up: The City of
may be able to lend you a hand. Fullerton
The City, through its Housing and Community Development Office, offers both deferred and below-market interest rate loans to
homeowners through its Housing Rehabilitation Program. Fullerton
The loans are funded through the federal Housing and Urban Development Department's Community Development Block Grant Program, and qualifying homeowners must meet the program’s income criteria and guidelines. .
"The goal of the program is to assist low- and moderate-income residents who cannot afford to keep up their homes on their own," explained Sylvia Chavez, housing programs assistant for the city. "By providing them with a way of taking care of their homes, the City is helping protect their quality of life, as well as their property values."
Below-market rate loans of up to $65,000 are available for qualified applicants. The loans carry a low interest rate of 6 percent or below, and the maximum repayment period is 15 years.
Homeowners unable to qualify for the below-market rate loans may qualify for a deferred loan, Chavez continued. Deferred loans require no monthly payments and no interest, and are reviewed every 15 years for eligibility. The loans come due upon the sale or transfer of the home.
Senior citizen homeowners (62 years of age or older) who only receive federal or state financial assistance, such as Social Security or disability, are allowed to bypass the bank application and apply directly for a deferred loan.
Applications and further information about the loan programs may be obtained by calling Chavez at (714) 738-6874, or by coming to the Housing and Community Rehabilitation Office on the second floor of
, Fullerton City Hall 303 W. Commonwealth Ave.
Applications and further information are also available under the Community Development Department section of the City website at www.ci.fullerton.ca.us.