OJAI : Low-Interest Loans Offered for Repairs

Although traffic congestion and the water shortage strictly limit new housing in Ojai, city officials say they have an ample supply of federal low-interest loans to make home repairs for low- and moderate-income residents.

The city has accumulated $250,000 for a housing rehabilitation program that began this year. So far officials have begun processing seven loans for home repairs, averaging $15,000 each. But officials say they need other loan applicants to take advantage of the low-interest loan program before the federal grants expire.

“We either use it or lose it,” said Elaine Willman, assistant to the city manager. She said city officials are pleased with the new program because it helps them provide affordable housing required by the state.

Robert Taylor of the Area Housing Authority of Ventura County said the program has gotten off to a slow start. “It’s like anything new, it requires a lot of advertisement,” he said. The agency runs the program for Ojai under an agreement finalized in January.

The program provided Ojai resident Betty Cundiff with a new roof for her home of 50 years, and she won’t have to repay the no-interest loan until she sells the brick bungalow off Park Road.

“I was desperate for a new roof,” Cundiff said. “Everything was deteriorating. Now it’s in pretty good shape. I think it will last another 10 years.”

Taylor said most of the loans have interest rates of between 4% and 6%, which result in low monthly payments. Some elderly residents on fixed incomes are eligible for no-interest loans.

The loans can also be used to cover bank and escrow fees, termite inspection and eradication, weatherization, some landscaping, and for repairs to satisfy building and safety codes.

To be eligible, an owner-occupant or renter must have an annual income of less than $25,000 for a one-person household, rising to a maximum of $44,650 for a household of eight or more.

“We encourage the homeowners to get their own contractors,” Taylor said. “We just provide the technical assistance.”