Quake Loan Program Exhausts Funding; Applications on Hold
A Los Angeles city loan program for victims of the Northridge earthquake has run out of money, forcing the city to put thousands of loan applications on hold, officials said Monday.
After providing $232 million in loans to the owners of 10,607 homes and apartments, a program for owners of single-family homes and apartment buildings has run dry, officials said.
“It’s virtually all gone,” said Gary Squier, general manager of the city’s Housing Department.
Because of the shortfall, loan applications for approximately 2,000 homes and apartments are unfunded and on hold, according to a Housing Department report.
Still, the program may be revived.
The Housing Department has drafted a proposal to the City Council, requesting permission to seek $55 million to $71 million from the federal Department of Housing and Urban Development to continue the program.