| || |
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 2012/2013. The reason for the program suspension is the State legislature’s passing of Assembly Bill 1X 26 (AB 1X 26), and the subsequent signing of the Bill’s into law by Governor Jerry Brown on June 30, 2011 and California Supreme Court decision to uphold AB1x 26. AB 1X 26 is the elimination of all redevelopment agencies throughout California and the taking of local tax revenues.