Oroville offers home rehab program
Homeowners within the city limits may qualify for lowinterest repair loans through the city's Housing Rehabilitation/Minor Home Repair Program.
“The program is for residents who don't have the means to improve their housing through traditional funding means,” said Kaitlyn Lorson, city program analyst.
In 2021 the city received $750,000 through the California Development Block Grant Program to offer qualifying homeowners 3-percent interest rate loans for “health and safety” home repairs. The CBDG program is funded through the U.S. Department of Housing and Urban Development.
While the funds became available two years ago, Amy Bergstrand, director of business assistance/housing development, said no one has applied to take advantage of the minimal interest loans which can be used to pay for roof replacement or repair, plumbing and sewer repair, windows and flooring, water damage, structural wood damage, electrical repairs or updating, foundation problems, ADA upgrades as well as new heating and air conditioning systems among other things.
“We've done mass mailings to residents within the city limits and posted it on our Facebook page,” said Bergstrand. “But we think that that people still don't really understand what these loans can be used for and how beneficial they could be.”
The loans are available to families earning up to 80 percent of the area's household income based on the number of people in the family and all wage-earners gross incomes. Properties must be single-family, owner-occupied homes or duplexes in which
one unit is owner occupied. Owners can't own additional properties and must have no past due accounts or collections on their credit report. Three types of loans — deferred, interest only and fully amortized —are available depending on the applicant's qualifications.
“There has to be equity in the home. We can't lend more than what the house is worth,” said Bergstrand. “The loans are specifically for health and safety repairs but if the homeowner has a wish list of general repairs — new lighting, new counter tops, etc. — 15 percent of the loan may be used for those things if there is enough left in the budget after the critical repairs are done.”
The loan process from application to start of construction can take “three to four months,” said Lorson. Following the completion and acceptance of the application, an appraisal is done of the property, a contractor hired by the city is sent out to evaluate the requested repairs and once all the this done and qualifications are verified, the project goes out for bid again and the homeowner chooses the contractor to complete the work.
“It isn't speedy but, it's worth it,” said Lorson. “Now is a really good time to get the process started so that things can get fixed before next winter.”
The city has offered the home rehabilitation in the past but not since 2015 as there has “been a shortage of funds,” said Bergstrand.
“We've operated the program for 25 years and awarded more than 80 loans,” said Bergstrand. “The staff here is ready, willing and excited to help homeowners through the process. We want to help people.”
For more information about the Housing Rehabilitation/Minor Home Repair Program and to get an application go to city hall, 1735 Montgomery Street or call 530-5382494. The program expires June 2024.