01-17-1995 - Minor Home Improvement GrantsCity of West Covina
a Memorandum
TO: CityCouncil and CityManager AGENDA
FROM: Human Services Department ITEM NO. C-s-a
DATE ^1-17-95
SUBJECT: MINOR HOME IMPROVEMENT GRANTS ®PRINTED ON RECYCLED PAPER
SUMMARY: The following, report outlines the City's past efforts with minor home
improvement grant. programs and some options for the 1995-96
Community Development Program.
BACKGROUND
For the past 20 years, the City of West Covina has allocated a portion of the Community
Development Block Grant funds to home improvements and repairs. Initially, the program
simply provided a 10 % rebate to lower income homeowners willing to undertake, certain
improvements. In 1976, the 10 % Rebate Program evolved into a deferred non -interest loan
which currently is in effect. The deferred loan requires that homeowners income not exceed
HUD established guidelines and that the proposed improvements be limited to those on the
improvement eligibility - list. The maximum amount of the loan has recently increased to
$15,000. The loan is secured by a lien on the property and is payable upon sale of the property
and in most•cases when the property is refinanced.
Approximately four years ago, the City Council asked Staff to look into a minor grant program
to address minor repairs that might be needed by .lower income homeowners. This type of
program is eligible for Community Development Block Grant funding but does require the
applicant to show proof of income for the previous 12 months to confirm eligibility. The need.
to disclose household income discouraged the few applicants that expressed an interest in the
grant. Many discovered that they needed to do more than minor improvements and ended up
getting a deferred loan.
A. disadvantage.of a grant program is the loss of funds, unlike the deferred loan program which .
revolves -funds as they are paid back to the program. , An advantage of a grant program is that
it can have a quick approval and provide emergency repairs such as water heater replacements,
broken windows, broken water lines, etc. Usually the proof of income by the applicant is what
takes time.
If Council wishes to pursue a Minor Home Improvement Program, it should be considered by
the Human Services Commission together with the 1995-96 CDBG Program which currently is
in the preliminary stages.
RECOMMENDATION
That the City Council refer this matter to the Human Services Commission to consider for the
1995-96 Community Development Block Grant Program.
Gus Salazar
Human Services Director
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