The Neighborhood Preservation Loan Program provides financing to Santee homeowners of modest means who wish to make repairs and improvements to their properties. Applicants may apply for loans of up to $60,000.1 Funds may be used for improvements to the home or yard. Emphasis is placed on improvements that enhance the exterior of the home and other parts of the property visible from public streets and trails.
Do I qualify?
The applicant’s household income must not exceed 50% of the area median income as adjusted for household size. The property to be improved must be the principal residence of the applicant. Limitations on household assets and project scope also apply. A representative of the Community Development Commission will assist you in determining whether you are eligible to participate.
What improvements can be funded?
Funds may be used primarily for repairs and improvements to portions of the home and yard visible from the public right of way. Up to 25% of program loan funds may be used to make needed repairs to the interior of the home.
Examples of eligible improvements include: repair of broken doors/windows; repair of stucco walls; exterior painting; installation of drought tolerant landscaping; and replacement of broken concrete walks or driveways, etc.
What are the repayment terms of the loan?
All payments are deferred until the property is sold, refinanced or transferred to another owner.
What security is required for the loan?
Neighborhood Preservation Loans are secured by a deed of trust recorded against the property.
What is the role of the Community Development Commission?
The Community Development Commission acts as a lender. Staff of the Commission will evaluate applications to determine conformance with program objectives and eligibility requirements. If requested, the Community Development Commission will assist the applicant in soliciting and evaluating contractor bids. The applicant will select the contractor and execute the construction contract.
The Community Development Commission will issue payments to the contractor for services provided during the course of construction. Contractor requests for payment must be approved by the applicant. A final payment will be made when the work has been determined to be complete and correct.
How do I apply?
Those interested in applying for a Neighborhood Preservation Loan should schedule a meeting with Community Development Commission staff to discuss the program features and terms.
1 The maximum loan amount may be reduced by limits on the ratio of all housing debt to the value of the home as improved, limits on the value of the home relative to other homes or limits on the value of improvements relative to the value of the home.
