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Affordable Housing Information
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Housing Rehabilitation Loan Program (HRLP)For more information, click here to view our brochure. The HRLP is designed to keep housing affordable for lower income homeowners and to maintain and upgrade the existing housing stock within the City of Santa Barbara. It is a voluntary Building and Zoning Code enforcement program to enable correction of deficient code items relating to health and safety such as: Plumbing, Electrical, Foundation, Roofing, Heating, Insulation, Sewer, Painting, Termite damage and dry-rot, and other related miscellaneous items.
Since the U.S. Department of Housing and Urban Development (HUD) provides funding for the City's HRLP, they mandate that the City identify and remove all lead based paint hazards at any residence receiving an HRLP loan. This lead paint removal work will typically be paid with a grant and will not usually add to the amount of the loan. - Property must be within the City limits
- Maximum Loan Amount is $100,000 per unit
- Maximum Fixed Interest Rate is 3%
- Maximum Term is 20 years unless deferred
- Repayment Terms - Deferred or Fully Amortized, according to ability to pay
City staff provides the following services at NO CHARGE to the property owner: - Financial Counseling
- Assistance In Application Preparation
- Escrow Services
- Property Inspection/Lead Based Paint Inspection
- Technical Assistance In Preparing Work Specifications & Cost Estimates; Obtaining Plans & Permits (if needed)
- Bidding Process: Contractors Are Licensed & Insured; Bidding Is Competitive
- Construction Monitoring: HRLP Acts As Liaison Between Homeowner and Contractor
- Accounting Services: Processing/Disbursing of Funds
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After Rehabilitation
Kitchen Before
Kitchen After
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The Application ProcessThe first step in this process is for the Housing Rehabilitation Program staff to obtain general information from you to determine your basic eligibility. This can be done by calling the Loan Officer, Carol Carpenter, at 564-5461.
Just like any lending institution we need to verify title to the property, mortgages, income, assets, liabilities, credit history and fire insurance. We do this at the time of the interview and also give you information about terms of the loan, which will be deferred or amortized, to fit your circumstances. Once we have reviewed all of your information, an evaluation will be made of your financial eligibility.
When we determine that you are eligible, you will receive a preliminary letter of approval. The next step will be for a Housing Rehabilitation Specialist to perform an inspection of the property and determine health and safety code deficiencies and/or zoning violations. Additionally, all lead paint hazards, deferred maintenance items, handicapped accessibility issues, and seriously overcrowded conditions (if applicable) will be addressed. A list will be prepared of the work that needs to be done and will be sent to you for your approval to proceed. A Work Write-Up will then be developed of all the work that is necessary and eligible under the Program. If plans need to be drafted and/or hearings for modifications, it will take more time in this phase of the process. Once the Work Write-Up is ready you will be provided with a cost estimate and we will proceed, with your approval. The job is then put out to bid, either to several licensed and insured contractors or to be negotiated with one state licensed contractor. You make the selection from those that submit bids; the homeowner customarily selects the lowest responsible bid. Once we know the cost of the project, and who will be doing the work, we can then present the project to our Loan Committee for approval.
Loan settlement is the last step before the construction begins. At this time you will be signing the Promissory Note and the Deed of Trust, which is recorded against your property. You will receive a Truth-in-Lending Statement stating the terms of the loan. Finally, there is a construction conference with the Contractor, when the Construction Contract and Notice to Proceed are signed. Work will begin within 10 days after this takes place. For additional information on HRLP, contact Carol Carpenter at 564-5461 or CCarpenter@SantaBarbaraCA.gov |