BREA : City Offers Loans for Home Improvement

If you’re a homeowner and have been thinking about getting a new roof or adding another room, the city has the money to help you--if you qualify.

Housing rehabilitation specialist Pat Stokes said Thursday that loans of as much as $35,000 are now available for home improvements and repairs for those who qualify based on their income levels.

Stokes said the city’s housing rehabilitation loan program has received $220,000 this fiscal year from the U.S. Department of Housing and Urban Development and the county.

The program offers deferred loans at 0% interest, payable in 30 years or at the time of transfer of title.

Low-interest loans, usually 3% below the prime rate, are also available, Stokes said. These loans are payable monthly for 15 years.

In certain cases, Stokes said, grants of at least $5,000 may also be extended to qualified applicants.

To qualify, applicants must fall into the category of low- or very-low-income families, Stokes said. In Orange County, for a family of four, the annual salary cap is $26,350 for very-low-income families and $38,600 for low-income families.

Applicants must also occupy the property set for improvement, and the repairs or improvements must follow strict HUD-promulgated guidelines.

Since the program started in 1976, Stokes said, most of the loans have been for new roofs, new plumbing, paint jobs, electrical repairs, general maintenance and room additions.

Most of the applicants are senior citizens, but during the last three years, younger families have applied, Stokes said. Last year, the program lent out $144,000. There were nine loan recipients, she said.

A public hearing on the program will be conducted at 7 p.m. Oct. 15 at the Training Center at the Brea Civic and Cultural Center, 1 Civic Center Circle, Level 2. Stokes said the purpose of the hearing is to evaluate the program and find ways to expand and improve it.