Owner-Occupied Housing Rehabilitation

The City's Housing Rehabilitation Program offers low-interest loans to eligible low-income homeowners for rehabilitation of their homes. The Program also helps borrowers to:
  • Determine the work that needs to be performed and cost
  • Prepare plans and construction contracts
  • Obtain permits
  • Locate a contractor
  • Provide temporary relocation services for tenants, if necessary
  • Oversee the construction process


Funding for this program comes from various sources at various times, including state and federal grants to the City, such as: CDBG, HOME, CalHome, Joe Serna, Jr. Farmworker Housing, and occasionally others. Each type of funding comes with various eligibility terms and other requirements. Some funding sources require that the owner provide matching funds to match the loan provided by the City.

Eligi​bility Criteria

Borrowers must own and occupy the home needing repairs as their primary residence and have a total annual household income that does not exceed the limit for each funding source based on household size. A household includes anyone, regardless of age, who will reside in home. Household assets will be considered when determining household income. 

In addition to being located within the City limits, the home's value cannot exceed the Program limits, which are based on the median purchase price for the area.

Available I​mprovements & Repairs

Work to correct the following is eligible under the program:
  • Code violations
  • Disabled access needs
  • Failing building systems (i.e. roofs, plumbing, electrical, etc.) or systems where failure appears imminent
  • Health and safety deficiencies
  • Structural deficiencies
Other repairs and/or improvements such as painting, landscaping, etc., that would not otherwise be required, are evaluated and considered on a case-by-case basis per program requirements.

Loan Terms

Repayment of housing rehabilitation loans are usually deferred for 30 years at a 3% simple interest. However, loans made with CDBG funds are usually amortized over 30 years at a 3% interest rate, but may be deferred and/or fully or partially forgiven. Payment of principal and any accrued interest is due in full upon sale, transfer, or refinance of the home.

The Housing Rehabilitation Program loan, like any mortgage, will be recorded as a lien against the home. Loans made with CalHome funds are not assumable and will require repayment upon sale or transfer of the home. The amount of assistance is subject to funding source subsidy limits as well as other considerations such as the home's equity since this is a loan that will be recorded against the property.

Additional Information

For more information about the City's Housing Programs, call 831-768-3080. You may also download the Program Guidelines (PDF).