SIMI VALLEY : City Eases Rules for Home-Repair Loans
The Simi Valley City Council has agreed to relax the city’s lending criteria for low-income residents who need to make repairs on their homes.
The Home Rehabilitation Program, which began in 1981, provides low-interest loans through the city to residents in lower-income brackets. Council members unanimously agreed Monday night to ease the criteria.
Standards for loans typically change from year to year, said Dulce Conde-Sierra, deputy director for the city’s Housing and Special Projects Department.
Last year, after an increase in defaults among recipients, the standards were tightened so that property owners could not take out loans exceeding 70% of the property’s value.
But the new criteria forced 38% of the applicants to be turned away, prompting the Affordable Housing Subcommittee to rethink the policy.
Effective immediately, the criteria changes to 75% of property value. Conde-Sierra said the new figures were closer to those used by many commercial banks and allow more leeway for residents.
“Essentially, we’re trying to meet the needs of low-income people,” she said.
Since 1981, 285 residents have taken out loans through the program.
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