Brea : $16 Million Left in Loans for Home Improvement

Brea officials have $16 million to dole out in home improvement loans, but residents are hardly rushing to apply.

As the Brea Residential Rehabilitation Bond Program celebrates its first anniversary this month, about $16 million of the $19 million originally available to the public remains, said Redevelopment Services Manager Paulette Ramsay.

“These programs are very hard to get started,” Development Services Director William Kelly said. “Once people see the changes, then things will pick up.”

The $3 million in tax-exempt bonds spent in the past year paid for improvements such as the repair of a garage and the addition of a family room. There are no income limits on the loans, which are geared for people who purchase and rehabilitate a home, Ramsay said. Twenty-seven loans either have been approved or are ready to close, Ramsay said.

The loans carry a 10.97% interest rate and can be paid back over a period up to 30 years.

The maximum a family can apply for is $175,000. Residents who live in a triplex or fourplex can request up to $100,000 for each unit, Kelly said. Brea’s Redevelopment Agency this month appointed an additional lender, First Interstate Mortgage Co., for the program. The loans have been available only to owners and tenants in the first year, but City Council members will decide whether to open them to developers at a future meeting, Public Information Officer Bonnie Dwyer said.