LOS ANGELES : Loan Program OKd to Aid Rebuilding of Condos
In the latest effort to rebuild the city’s quake-damaged housing stock, the Los Angeles City Council voted Tuesday to create a loan program to help condominium owners and associations rebuild units and common areas.
The loan program will provide zero-interest loans from a $318-million pool of federal and local housing repair funds. City officials expect the program to provide loans to the owners of up to 5,000 units.
The loans will only be offered to individual condo owners and associations that have been rejected by other private or government loan programs, including the Small Business Administration.
Associations interested in a loan to repair damage in common areas must get a majority of the members to agree to take on the loan and each pay a pro-rated share of the monthly payments. Individual owners can apply for separate loans without a vote of the entire association.
The funds must be paid off over 30 years, with the first payment deferred for five years. The loan program will provide a maximum of $35,000 per unit.
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