The Housing Preservation Program focuses on preserving housing stock within the City of West Covina. The Community Development Commission makes loans available to moderate-income homeowners that are in need of exterior improvements. In addition, the CDC works closely with code enforcement in providing loans to homeowners that have been identified as requiring exterior improvements to their home.

Objective

Over the past several years, a large percentage of the housing stock within the City has matured and is now in need of a face-lift. This Program was adopted as part of the budget to protect and preserve the single-family housing stock.

Qualification for the program is based on county income limits provided by the State of California Department of Housing and Community Development. Please refer to the specific income guidelines.

2010 Maximum Income Limits

Family Size	Annual Income	Family Size	Annual Income
1	$52,900	5	$81,650
2	$60,500	6	$87,700
3	$68,050	7	$93,750
4	$75,600	8	$99,800

(Based on current effective median income of Los Angeles County. Revised annually as set forth in 25 Cal. Code Regs. Section 6932) As of June 17, 2010.

Program Guidelines

The Program will provide eligible, moderate-income West Covina homeowners a low-interest home improvement loan of up to $10,000. Loans repaid within the first ten (10) years will not accrue interest and after the tenth year, loans will accrue simple interest at a rate of 5 percent per annum until they are paid in full. To be eligible, a single-family home must be the primary residence and the homeowner must have resided in the home for a minimum of six (6) months.

Basic Requirements

• Must be a homeowner residing within the City of West Covina.
• Income must meet qualifying income guidelines.
• Exterior improvements only.
• Maximum loan of $10,000 plus a $50 bank-processing fee.

Financing Provisions

Maximum Loan Amount: $10,000
Interest Rate: 5% after year 10
Fees to Borrower: $50 bank processing fee

• Loan must be paid in a lump sum if paid before year 10.
• Loan will accrue simple interest at a rate of 5 percent per annum after year 10 and monthly loan payments will begin.
• Only licensed contractors can be used. Should the homeowner wish to do the work, the Community Development Commission will pay for materials only; no equipment, labor or tool costs will be paid. All payments will be made upon completion of work.
• Homeowners previously given a loan through the Home Improvement Loan Program are not eligible to receive a Housing Preservation Program Loan.
• A homeowner may apply more than once, but not in the same fiscal year (July 1 to June 30) and as long as the maximum loan amount is not exceeded.
• The City of West Covina does not subordinate loans approved under the Housing Preservation Program. Homeowners will be required to execute a promissory note secured by a deed of trust.

Payment Provisions

• When the property is sold or title is transferred (includes transfer within family).
• Upon the death of the Title holder(s) of the property [the homeowner(s)].
• Upon the homeowner refinancing their primary loan(s) or a take-out financing.
• If the homeowner is in default of the loan agreement.
• When the property fails to be maintained according to City building codes; or when the homeowner no longer resides in the house.