Redevelopment plays a critical role in providing affordable housing for its citizens. Under California Redevelopment Law, redevelopment agencies are required to deposit at least 20 percent of the property tax increment revenues generated from their activities into a special fund called a “Low and Moderate-Income Housing Fund.” These funds can only be used for the purpose of increasing, improving, and preserving the community’s supply of affordable housing for very low, low, or moderate-income households.

The West Covina Community Development Commission (“CDC”) has been a leader in providing affordable housing opportunities in the City addressing affordable housing needs in a very proactive manner. Since 1971, the West Covina CDC has provided funding to rehabilitate over 2,283 affordable housing units through its Housing Programs, assisted 142 first time home buyers through the previously implemented First Time Homebuyer program, and has produced an excess of 525 housing units over the inclusionary housing requirements (with full compliance of the Health and Safety Code with respect to affordable housing). The CDC has partnered with housing developers to increase the supply of affordable housing residences for very low to moderate-income individuals/families. These partnerships have resulted in safe, sanitary, and first-class homes for families and seniors in need.

West Covina CDC has previously provided residents with two home rehabilitation loan programs: the Home Improvement Loan Program (HILP) and the Housing Preservation Loan Program (HPP).

	Home Loan Improvement Program (HILP)	Home Preservation Program (HPP)
Must be a homeowner within the city of West Covina
Income must meet qualifying income quidelines	Low-Income	Moderate-Income
Maximum loan of $10,000 plus a $50 bank-processing fee
Interest Rate 5% after yeart 10
Eligible Improvements	Both Interior & Exterior	Exterior Only

These programs were income restricted and are intended to protect and preserve the single-family housing stock.

• Under the Home Improvement Loan Program (HILP), over 1,686 loans have been issued since inception in 1979.
• Under the Housing Preservation Program (HPP), over 347 loans have been issued since inception in 2000.

The Home Improvement Loan Program (HILP) and Housing Preservation Loan Program (HPP) have currently been suspended for the fiscal year 2011/2012. The reason for the program suspension is the State legislature’s passing of Assembly Bill 1X 26 (AB 1X 26) and Assembly Bill 1X 27 (AB 1X 27), and the subsequent signing of the Bill’s into law by Governor Jerry Brown on June 30, 2011. AB 1X 26 is the elimination of all redevelopment agencies throughout California and the taking of local tax revenues. Along with AB 1X 26, AB 1X 27 was passed which allows a redevelopment agency to continue to exist if that agency agrees to pay the State a pro rata share of $1.7 billion this year and $400 million per year thereafter. In order for the City of West Covina CDC to survive, the CDC must pay the ransom (using your local tax dollars that should be invested in West Covina) of approximately $5.85 million this year and $1.4 million per year thereafter. Currently the City of West Covina and the CDC are trying to determine if the ransom payments can be made; however, until determination is made all redevelopment funds for the HILP and HPP have been frozen.

The CDC is compiling a list of interested applicants based on a first come first serve basis and should the programs be reinitiated, individuals on the waitlist will be contacted in the future. To be placed on the waitlist please call Barbara Banks at (626) 939-8417. We apologize for any inconvenience this may cause you and thank you for your support of the Community Development Commission.