City Will Provide Interest-Free Loans for Quake Repair

The Los Angeles City Council approved a program Tuesday to provide interest-free loans to repair single-family homes and small housing projects damaged by the Northridge earthquake.

The funding will be drawn from a $300-million pool of federal money that city housing officials accumulated since the quake to provide apartment and condominium owners with zero- and low-interest loans to make repairs.

Sol Banks, the city’s community housing program manager, said the program is designed to provide funding for residents who could not qualify for a federal emergency loan or a conventional bank loan to make home repairs.

Loans to buy and repair quake-damaged homes and apartment buildings with up to four units are also provided, Banks said.

Under the loan program, those who qualify for loans to repair their own house or building can defer payments for the first three years. Those who obtain a loan to buy and repair a house can defer payments for a year.

The pool of federal funds is currently down to $160 million, with $20 million set aside for low-income projects and a similar amount reserved for condo repair loans. Banks said the city’s Housing Department is not sure how many people will apply for the new loan program.

Those interested may call (800) 994-4444 for more information.