Housing Rehabilitation Loan Program butterfly

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Housing Rehabilitation Loan Program Guidelines

2023 State and Federal Income Limits

2022 CDBG and HOME 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 Grant (CDBG) and CalHOME funding, the City has been providing deferred payment rehabilitation loans to qualified low-income homeowners. This program assists seniors to age in place and facilitates the retention of low-income housing within the City.

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 reviewed by Housing staff.
  • If the applicant meets income requirements, 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 guidelines. 
  • A loan Committee reviews the project and approves funding for the loan 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-whichever comes first. A simple 3% interest accrues annually. 
  • The Housing staff 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 project completion. 

The City of Pacific Grove complies with all federal, state, and local required policies and procedures affecting its programs and activities, including employment and housing, with appropriate regulations prohibiting discrimination on the basis of race, color, sex, national origin, religion, sexual orientation, age, family status or persons with disabilities. The City must comply with CDBG and CalHOME program guidelines.

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The Housing Division of the City of Pacific Grove is dedicated to fostering an inclusive, sustainable, and thriving community by administering programs that enhance, preserve, and expand access to safe, affordable housing for all residents, free of discrimination and undue barriers.

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