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Housing Rehabilitation Loan Program

The goal of our program is to preserve and protect; preserve a housing resource and protect homeowners from health and safety deficiencies.

Over the last 25 years the City has been making deferred-payment rehabilitation loans to qualified low-income homeowners. Loan recipients make much needed home repairs to their homes without having to pay monthly payments. 

Prior to 2010, approximately 4 loans per year were made to Pacific Grove. In 2010 due to the benefit of state and federal grants 10 homeowners received loans that totaled $408,500. Not only has the community benefited by the improvements made to the homes, but the work has been done by local contractors who purchased much of their materials locally. It has truly been a win-win situation for the community.

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Video demonstration on how the Housing Rehabilitation Program helps homeowners

A Rehabilitation loan is secured by a Deed of Trust, no monthly payments and 3% simple interest rate (accrues annuallly) is applied for the life of the loan. Full Payment of the loan is due at time of sale of the property or any transfer of property title. Simply put, an eligible homeowner can make health and safety repairswith no money; down and get assistance from staff to help with managing the contractor's work.

The process is fairly simple:

  1. The homeowner applies for the loan and supplies the necessary financial documentation.
  2. The application is reviewed by the Housing staff.
  3. If the applicant meets all of the requirements, the project is forwarded to the Rehabilitation Inspector.
  4. The Inspector will meet with the applicant, do a thorough inspection of the home, and determine which health and safety items fall under the scope of the program funding guidelines.
  5. A Loan Committee reviews the project and approves funding for the loan to the homeowner.
  6. The Inspector completes a write-up of the work to be done, discusses the items with the homeowner, then assists the homeowner in sending out the write-up to the appropriate local contractors.
  7. The homeowner then selects a contractor based on the responses to the write-up.
  8. The Inspector prepares contract documents which the homeowner and contractor both sign and the work begins.
  9. The Inspector will have bills paid to the contractor as the work progresses and as the homeowner approves the bills for payment.
  10. Housing staff monitor the progress of the work until the project is finished.


2019 Income Guidelines for Housing Programs

Download Housing Rehabilitation Loan Application

It is the policy and intention of the City of Pacific Grove to comply in all of its policies and procedures affecting all of its programs and activities, including employment and housing, with all appropriate regulations prohibiting discrimination on the basis of race, color, sex, national origin, religion, sexual orientation, age, family status or persons with disabilities.