l:\word\genforms\preapp\rental\home\preapp.doc revised 5/10/99
DEPARTMENT OF PLANNING ANDCOMMUNITY DEVELOPMENT
Housing & Community Development Division
809 CENTER STREET, ROOM 206, SANTA CRUZ, CA 95060 • 831/420-6250 • FAX 831/420-6458
UNIFIED HOUSING REHABILITATION PROGRAM
HOME RENTAL REPAIR LOANS
Thank you for your interest in the City of Santa Cruz Unified Housing Rehabilitation Program
(UHRP). The following information describes how the program operates and what types of loans
are available for repair of rental properties.
What is the Unified Housing Rehabilitation Program?
The purpose of the HOME Rental Repair Loan program is to assist owners of rental property
serving low and very low-income tenants by providing low interest loans to repair and restore
substandard and deteriorated units. The primary objective is to eliminate life threatening hazards
and to correct health and safety problems.
What kind of work is eligible?
Eligible work includes repairs to foundations, roofs, electrical systems, plumbing, heating,
windows, and doors. Abatement of hazardous materials such as lead-based paint and asbestos
is eligible, energy conservation measures, modifications for handicapped accessibility, painting
and some floor coverings also qualify.
How do rental projects qualify for the program?
Rental property owners qualify for assistance by agreeing to enter into a Regulatory Agreement
and Grant of Interest in Real Property which ensures that HOME rents apply to units assisted
with HOME funds. Rental property owners must rent to low-income households and the term of
affordability ranges from 5 to 15 years, depending on the rehabilitation cost per units. Tenant
income must conform with HOME requirements and must be verified annually. Project must
show a positive cash flow and have a minimum of 20% equity after rehabilitation.
What interest rate is applied to the loan?
Funding is currently available from the Home Investment Partnerships Program (HOME) at 3%
interest for rental rehabilitation projects.