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Homeowner
Rehabilitation Program
City
of Redding
777
Cypress Avenue
Redding,
CA 96001
Dave Forseth
(530)225-4043
(530)245-7160
fax
dforseth@ci.redding.ca.us
The
City of Redding Homeowner Rehabilitation Program provides
low-interest loans to qualified homeowners for rehabilitation
of residential property. The loans are available to
homeowners who would not otherwise be eligible for conventional
loan financing. Special consideration is given to
families on fixed incomes, particularly the elderly and
disabled.
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Eligibility:
To
qualify for loan assistance, an applicant must: occupy the
property as their principal residence; have title to the
property; have household income that does not exceed the
low-income guidelines established by the U.S. Department
of Housing and Urban Development; and meet program credit
criteria.
Home
Criteria:
The
home must be located in a residentially-zoned area within
the Redding city limits.
Loan
Highlights:
Deferred
payment loans are available to elderly and disabled homeowners.
Principal and interest on the loan is due upon sale of the
property, transfer of title, or if the borrower no longer
occupies the home. The interest rate on a deferred
loan is 3%. An applicant not eligible for a deferred
payment loan must be financially able to make monthly payments
on an amortized loan. The interest rate on an amortized
loan is 5%. The loan amount will depend on the cost
of the repairs and available homeowner equity. Total
debt on the property, including the rehabilitation loan,
may not exceed 90% of the property's value. Loans
are secured by a promissory note and a deed of trust recorded
on the property.
Eligible
Repairs:
Repairs
may include roofing, pest control work, plumbing, electrical,
flooring, painting, and some types of general property
improvements. Energy conservation work like weatherstripping
and insulation upgrades are encouraged. Improvements
such as pools, spas and interior decorating are not eligible.
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