Owner-Occupied Rehabilitation Program Brochure

Program Overview

The Town of Paradise offers housing repair, rehabilitation, and reconstruction services to its residents through federal- and state-funded programs. The housing rehabilitation/reconstruction program provides deferred, low-interest loans to low-income homeowners for health and safety repairs. If, after reading the following information, you would like to be placed on our waiting list, please fill out the attached form and return it to the Town of Paradise.

Homeowner Eligibility

To qualify for the program, you must:

• Own, live in and be on title to the home to be rehabilitated/reconstructed.
• Meet certain income guidelines.
• Have owned your home for at least one year for rehabilitation, or lost home in Camp Fire for reconstruction.
• Mortgage, property taxes, homeowners insurance must be current.

Property Eligibility

For the property to qualify for the program, it must be:

• Within the Town Limits of Paradise.
• Property value must be under the After- Rehabilitation Limits set by HUD as determined by comparisons or appraisal.

Project Eligibility

The following activities are eligible under this program:

• Home reconstruction.
• Improvements required to correct unsafe, unhealthy, unsanitary or substandard conditions.
• Repairs and improvements for weatherization — only when health & safety or code violation repairs are required.
• Cost of improvements necessary to ensure accessibility of the property to physically handicapped homeowners or dependents occupying the property,— only when health & safety or code violation repairs are required.

Loan Terms

• A Housing Rehabilitation/Reconstruction loan is deferred — meaning that the homeowner makes no monthly payments. The term of the loan is 30 years; however the loan can come due in the event that the property is sold, refinanced, transferred or rented. The loan can also be called if there is a violation of the conditions of the program.
• The actual loan amount depends on the extent of the work.
• The interest rate is 3% simple interest per year. The principal and interest payments are deferred for the term of the loan. After the 10th anniversary of the loan, interest will no longer accrue for the remainder of the loan term.
• A borrower may make payments on the loan but is not obligated to or can pay off the loan at any time without penalty.
• The applicant must reside at the property for the term of the loan, otherwise the loan is in default and due and payable immediately.

How To Apply

• Return the Program Interest Form. When your project reaches the top of the waiting list, you will be sent an application packet. Income, asset and existing mortgage verifications will be made and a credit report will be requested. Projects are taken on a first-come, first-serve basis, except for emergency repairs, which are sometimes given priority.
• There is no charge to apply for a loan. All loan costs, such as title insurance, recording fees, termite report, etc. are granted or included in the loan amount. Loans are secured by a deed of trust recorded on the property.
• The borrower must maintain fire insurance coverage and stay up-to-date with property tax payments and any required monthly payments.