Housing Rehabilitation Loan Program butterfly

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Housing Rehabilitation Loan Program Guidelines

2021 Income Guidelines for Housing Programs


The goal of the Housing Rehabilitation Loan Program is to Preserve and Protect; Preserve a housing resource and Protect homeowners and tenants from health and safety deficiencies. 

Over the last 25 years through Community Development Block Grants, the City has been making deferred payment rehabilitation loans to qualified low-income homeowners. Loan recipients make much needed repairs to their homes without having to make monthly payments or pay any fees out of pocket. Not only have members of the community benefited by the improvements made to their 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. 

Video demonstration on how the Housing Rehabilitation Program helps homeowners

The process is fairly simple:

  • The homeowner applies for the loan and supplies the necessary financial documentation.
  • The application is reviewd by Housing staff.
  • If the applicant meets all of the requirements, the Housing staff visits the property where they take pictures and notes of the requested work and discuss which health and safety items fall under the scope of the program funding guidlines. 
  • A loan Commitee reviews the project and approves funding for the load to the homeowner. 
  • The funds are placed in an escrow account and the homeowner signs loan documents securing a lien against the property. The loan is not due and payable until 30 years or the sale or transfer of title of the property-which ever comes first. A simple 3% intrerest accures annually. 
  • The Housing sraff help the homeowner solicit bids from local contractors.
  • The homeowner selects the contractor that will do the repairs. 
  • The Housing staff prepares contract documents which the homeowner and contractor both sign and the work begins. 
  • As the work progresses the contractor will request payment at various intervals. The homeowner and city staff will sign off that the work has been completed and instruct the escrow officer to release a portion of the funds to the contractor.
  • Housing staff monitors the progress of the work until the project is finished. 

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.

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