GARDEN GROVE : Home-Repair Loan Ceiling Is Raised

Residents who want to improve the appearance of their homes can now borrow a larger amount of money from the city’s property improvement loan program and have more time to repay the loan.

The City Council this week raised the loan limit of the “Love Thy Neighborhood” program from $25,000 to $40,000 and extended the duration of the loans from 15 years to 20 years for qualified residents.

City officials said the changes were necessary because home improvement and rehabilitation costs were frequently surpassing the $25,000 loan limit, and costs of construction in Orange County continue to rise dramatically, said Gregory C. Devereaux, director of the city’s department of community development.

The city started the property improvement loan program in 1988 to maintain, improve or develop quality neighborhoods throughout the city.

To qualify for a loan with a maximum interest rate of 5%, homeowners must either have critical home improvement needs, such as a hole in the roof, or the appearance of their property must “significantly impact” their neighborhood, said Neighborhood Improvement Manager David R. Edgar.

“It’s an extremely attractive program,” Edgar said. “We think it has done a lot to improve the neighborhoods that we’ve gone into. We find that a lot of people have been thinking about making some improvements, but for a variety of reasons, haven’t gotten around to them.”

About 35 to 50 people have qualified for loans each year since the program’s inception.

“Our goal is that the improved homes will serve as a catalyst for other (homeowners) in the neighborhood to do some work on their own,” Edgar said. “We want people to invest in their neighborhood.”

For more information, contact the city’s Neighborhood Improvement Division at (714) 741-5140.