Item 4 - HOUSING PRESERVATION PROGRAM - REVISIONS TO GUIDELINES FOR INCREASE IN MAXIMUM LOAN AMOUNTAGENDA ITEM NO.4
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: August 16, 2022
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: HOUSING PRESERVATION PROGRAM— REVISIONS TO GUIDELINES FOR INCREASE
IN MAXIMUM LOAN AMOUNT, ADDITION OF ELIGIBLE IMPROVMENTS, AND
ELIMINATION OF INTEREST RATE
RECOMMENDATION:
It is recommended that the City Council, acting as the Community Development Commission, take the
following actions:
1. Approve the revised guidelines for the City of West Covina Housing Preservation Loan Program, in
substantially the form as attached and in such final form as approved by the City Manager in
consultation with the City Attorney, and authorize the City Manager to revise any and all forms and
execute all documents necessary to implement the revised guidelines.
2. Write-off a total of twenty-two (22) former housing loans totaling $192,858.00. These loans will be
considered canceled and removed from the City's ledger.
3. Ratify any former housing loans that were paid -off and incorrectly charged interest by the City
and/or AmeriNat (City's loan servicer) prior to August 16, 2022.
BACKGROUND:
On December 16, 2014, the City Council approved the updated guidelines for the City of West Covina
Housing Preservation Loan Program (HPP) and authorized the reinstatement of the Program. The HPP
program focuses on preserving homes within the community by protecting, preserving, and improving the
single-family housing stock.
The current HPP guidelines provide a loan of up to $10,000 to eligible West Covina
homeowners. Homeowners are required to execute a promissory note secured by a deed of trust for a
30-year loan term. Loans repaid within the first ten (10) years do not accrue interest. After the tenth year,
monthly payments are required to be made and loans accrue interest at the rate of five percent (5%) per
annum. The loan can only be used for exterior repairs and improvements.
HPP is funded by two different sources, the Community Development Block Grant (CDBG) program and
Low- and Moderate -Income Housing Fund (LMIHF). CDBG is a federal program administered by the U.S.
Department of Housing and Urban Development (HUD) and provides communities with resources to
address community development needs such as infrastructure development, anti -poverty programs, and
property rehabilitation. Each year the City approves the CDBG Action Plan that allocates CDBG funding
for that fiscal year. In Fiscal Years, 2014-15, 2015-16, and 2016-17, a total of $450,000 was allocated for
HPP. Since that time, additional funding has not been allocated to the Program. HPP's second source
of funding is the LMIHF. The LMIHF funds are administered by the West Covina Housing Authority
through the Community Development Commission (CDC). LMIHF funds are allocated yearly through the
annual budget process to HPP.
Since the program was reinstated in 2015, a total of sixty-four (64) HPP loans have been funded with
three (3) applications currently pending approval. Of those sixty-four (64) loans, twenty-eight (28) were
funded by CBDG funds and thirty-six (36) were funded by LMIHF.
DISCUSSION:
This loan has provided borrowers with a loan opportunity to fund a variety of home improvements.
However, with inflation occurring, it has impacted the construction sector especially hard. Labor and
material costs have increased, impacting the overall price of home improvements. As a result, staff is
proposing to increase the maximum loan amount to $25,000.
As previously stated, the cost of home improvements has increased significantly in a short period of
time. Repairs that fall within the program parameters have increased in cost and now exceed the
maximum loan limit. The new proposed amount will help cover present day pricing for similar types of
home improvements. The table below illustrates this increase:
Repair Costs
2015 2021
Roof Repair
1 $9,5001 $12,100 - $17,600
Exterior Paint
1 $6,800 - $7,3001 $10,400
Of the sixty-four (64) residents who have obtained loans since the reinstatement of the Program, the vast
majority have elected to obtain the maximum amount. The following table shows the loan amounts and
the number of loans borrowed in each thousand -dollar range.
Loan Amounts
Total
Under $5,999 $6k-$8,999
$9k-$9,999
Entire $10k
Loans
64
1 2 1 10
1 6
1 46
Of the forty-six (46) loans borrowed at the $10,000 loan limit, all forty-six (46) borrowers had home
improvements completed that exceeded the maximum loan limit. In such cases borrowers paid
out-of-pocket for these excess amounts. With the proposed maximum loan amount increase, staff hopes
to help a wider range of residents who may not have the ability to pay these out-of-pocket expenses.
The Program's objective is to make loans affordable for moderate -income homeowners. With this in
mind, additional program parameters will also be proposed in order to continue with this goal. The
Program's interest rate and loan term will be adjusted to assist households. Due to the increase in the
loan amount, the deferral period will be shortened from the existing ten (10) years to five (5) years. In
extending the repayment years from twenty (20) to twenty-five (25), borrowers will be able to maintain a
comparable monthly loan payment. As the Program is directed at moderate- and low-income households,
the repayment amounts will be more feasible. The following chart illustrates the comparison of a
twenty-year (20) payment program at five percent (5%) interest and a twenty -five-year (25) payment
program at zero percent (0%) interest.
_J-- "' "'" " 25 Year Payment Program with
Loan Amount' with 0% Interest
5% Interest
$7,550
$49.83
$25.17
$10,050
$66.33
$33.50
$12,550
N/
$41.83
$15,050
N/
$50.17
$17,550
N/
$58.50
$20,050
N/
$66.83
$25,050
N/
$83.50
*Possible loan amounts are listed to illustrate examples of corresponding payment amounts.
Staff is seeking to clarify the interest charged on existing HPP loans. The interest on former HPP loans
have been calculated inconsistently. To correct any errors, documentation on all loans obtained prior to
the reinstatement of the program in 2014 will be amended to reflect a 5% per annum interest rate.
Promissory notes will be revised to reflect terms and amounts based on each specific loan.
Staff is also proposing revisions to the HPP guidelines to include additional eligible home improvements.
Added to the list of accepted improvements will be:
Additional Home Improvements
Central Heating, Ventilation, Air Conditioning (HVAC)
Repair/Replacement/Installation
Water Heater Repair/Replacement
Energy Conservation Improvements: Solar (Panels/Battery)
Americans with Disabilities Act (ADA) Accessibility Improvements
A large portion of those with active loans, as well as the majority of prospective applicants are comprised
of senior citizens (50+), retired individuals. As retired persons, they tend to reside in their homes for a
large portion of a day. Added to that, in the hot summer months, this vulnerable population bears
extreme temperatures in a housing stock of homes constructed prior to 1979. Improvements that help
the community move towards more sustainable practices will also be included. As with air conditioning,
the demand for assistance for electrical panels has also risen. Along the same lines, the list will include
water heater renovations. With a persistent drought across the western United States and the need for
energy conservation, the additions to the program seek to mitigate increasing water and electricity costs
for residents. Lastly, we will also make accessibility improvements available for those with disabilities.
The additional improvements consist of repairs that will improve homeowner's quality of life.
In determining the proposed revisions, staff conducted a survey of neighboring communities. The table
below illustrates the programs offered by surrounding communities:
Home Improvement Programs
City
Maximum Loan
Amount
F $20,0001
$20,0001=
Interest Rate
3%
0%
0%
Covina
Diamond Bar
West Covina*
$25,000
Walnut
$30,000
0%
Baldwin Park
$45,000
1%
Pomona
$75,000
2%
EI Monte
$80,000
I0%
'This is based on the proposed HPP Guideline updates
Staff has researched and compared similar program guidelines of neighboring communities in order to
provide City residents with comparable loan options. A larger loan amount, lowered interest rate, and a
lengthened list of eligible improvements will further enhance the Program's original objective of improving
the City's housing stock. If approved, the revisions proposed will offer residents expanded options to
continue to protect, preserve, and improve West Covina home stock. If approved, the attached HPP
Guidelines will go into effect September 1, 2022. New loans as of September 1, 2022, will be subject to
the new guidelines.
In addition to modifying the HPP guidelines, staff would like to address some former housing loans. First,
there are housing loans that were not transferred to AmeriNat after the ten (10) year deferral period.
These loans were issued between 2000 and 2010 and would have become due starting 2010 through
2020. Staff has made several attempts to reach out the borrowers to start repayment of those loans.
However, the loans are missing the legally binding documentation (Deed of Trust and/or Promissory
Note) in order for the City to pursue loan repayment. As such, staff is recommending that these
twenty-two (22) loans totaling $192,858.00 be written off the City's ledger (Attachment No. 2). For the
un-transferred loans that the City has a Grant Deed recorded, but no Promissory Note, the City will
reduce the 5% interest rate and request the homeowner to execute a new Promissory Note. For those
un-transferred loans that the City has a Promissory Note, if necessary, the homeowner will be requested
to execute a New Promissory Note to reflect 5% per annum interest rate.
Secondly, there as been inconsistency on how the 5% interest rate was calculated upon payoffs of
former HPP loans. As such, staff is recommending that the City Council ratify HPP loans that were paid
off prior to August 16, 2022, that were incorrectly charged interest by the City and/or AmeriNat.
LEGAL REVIEW:
The City Attorney's Office has reviewed the revised guidelines and approved them as to form.
OPTIONS:
The City Council has the following options:
1. Approve Staff's recommendation; or
2. Provide alternative direction.
Prepared by: Gerardo Rojas, Economic Development Project Coordinator
Fiscal Impact
FISCAL IMPACT:
The Housing Preservation Loan Program is funded by the Low- and Moderate -Income Housing Fund
(LMIHF) and the Community Development Block Grant (CDBG). The current balance for the LMIHF is
$375,800. The current balance for the CDBG funding is $341,644. General Fund funding is not used
for the funding of HPP loans.
Attachments
Attachment No. 1 - Proposed Guidelines
Attachment No. 2 - Loans to be Written -Off
CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness
A Well -Planned Community
ATTACHMENT NO. 1
CITY OF WEST COVINA
Housing
Preservation
Loan Program
Guidelines
Revised August 2022
Housing Preservation Program I Procedural Guidelines 1
West Covina Community & Economic Development
Housing Preservation Loan Program
Guidelines
A large percentage of the housing stock within the City has matured and is now in need of a face-lift. The
Housing Preservation Loan Program focuses on preserving homes within the community by protecting,
preserving, and improving the single-family housing stock. This program makes available to eligible West
Covina homeowners a 30 year no interest, loan up to a maximum of $25,000. Loans will have a five (5) year
deferred period. After the fifth year, homeowners must make monthly payments for the remainder of the
thirty (30) year loan. Please check the income guidelines on the application for current income limits. In
addition to income limits, homeowners are required to have occupied their homes for more than twelve (12)
months and the unit must be the homeowner's primary residence.
Housing Preservation Program I Procedural Guidelines 2
Table of Contents
2.1.1 Cover Letter................................................................................................................................................................................................
7
2.1.2 Loan Application Form.............................................................................................................................................................................
7
2.1.3 List of Eligible Improvements..............................................................................................................................................................8
2.1.4 Employment and Salary Certification................................................................................................................................................8
2.1.5 Mortgage and Information Authorization.........................................................................................................................................
9
2.1.6 Lead -Based Paint Testing.......................................................................................................................................................................9
2.2 Pre -Qualification Approval/Denial.............................................................................................................................................................10
2.3 Setting Appointment for Property Inspection.........................................................................................................................................11
2.4 Property Inspection Worksheet/Required Photos..................................................................................................................................11
2.5 Certification of Approved List of Improvements..................................................................................................................................11
2.6 Lead -Based Paint Testing..............................................................................................................................................................................12
2.7 Authorization for Loan Funding..................................................................................................................................................................12
2.8 Loan Folder..........................................................................................................................................................................................................12
3 Phase Two: Loan Funding................................................................................................................................................13
3.1 Funding Folder..................................................................................................................................................................................................14
3.2 Signing of Loan Documents.........................................................................................................................................................................16
4 Phase Three: Construction Monitoring............................................................................................................................16
4.1 California Preliminary Notice......................................................................................................................................................................17
4.2 Verification of Building Permits, Contractor(s) License, and City Business License..............................................................17
4.3 Windshield Surveys.........................................................................................................................................................................................17
4.4 Completion of Work........................................................................................................................................................................................17
4.5 Lead -Based Paint Clearance.........................................................................................................................................................................18
4.6 Homeowner Satisfaction Statement...........................................................................................................................................................18
4.7 Release of Labor and Materials Form.......................................................................................................................................................18
4.8 Payment Approval for Work Completed..................................................................................................................................................18
4.9 Homeowner Evaluation Form......................................................................................................................................................................18
Housing Preservation Program I Procedural Guidelines 3
5 Phase Four. Loan Repayment...........................................................................................................................................19
5.1 Beneficiary Statement.....................................................................................................................................................................................20
5.2 Release of Lien..................................................................................................................................................................................................20
5.3 Deed of Trust Reconveyance........................................................................................................................................................................20
5.4 Foreclosure.........................................................................................................................................................................................................20
5.5 Bankruptcy..........................................................................................................................................................................................................21
6 Program Forms/Documents...............................................................................................................................................
21
PhaseOne: Forms/Documents................................................................................................................................................................................21
CoverLetter....................................................................................................................................................................................................................22
LoanApplication...........................................................................................................................................................................................................23
PermittedImprovements............................................................................................................................................................................................25
Employmentand Salary Certification...................................................................................................................................................................27
Process Control (Income Determination).............................................................................................................................................................28
Check -Off List...............................................................................................................................................................................................................29
Lead -Based Paint Hazard Acknowledgement.....................................................................................................................................................30
Lead -Based Paint Testing..........................................................................................................................................................................................31
Lead -Based Paint Testing Deposit Agreement...................................................................................................................................................32
Lead -Based Paint Remediation Form....................................................................................................................................................................33
RemediationContractors............................................................................................................................................................................................34
Mortgage and Information Authorization.............................................................................................................................................................35
Proof of Ownership — Grant Deed or Deed of Trust.........................................................................................................................................36
Property Inspection Worksheet / Required Photos............................................................................................................................................37
Certification of Approved List of Improvements..............................................................................................................................................38
Authorizationfor Loan Funding..............................................................................................................................................................................39
Listof Payment Checks to Contractor(s).............................................................................................................................................................40
PhaseTwo: Forms/Documents.................................................................................................................................................................................41
BankAuthorization to Release Funds...................................................................................................................................................................42
Truth in Lending Disclosure Statement................................................................................................................................................................43
PromissoryNote............................................................................................................................................................................................................44
Noticeof Right to Cancel..........................................................................................................................................................................................45
NewDeed of Trust.......................................................................................................................................................................................................46
WaiverRequest..............................................................................................................................................................................................................47
PhaseThree: Forms/Documents..............................................................................................................................................................................48
Housing Preservation Program I Procedural Guidelines 4
CaliforniaPreliminary Notice..................................................................................................................................................................................49
Homeowner Satisfaction Statement.......................................................................................................................................................................50
Release of Labor and Materials Form...................................................................................................................................................................51
PaymentApproval Form............................................................................................................................................................................................52
EvaluationForm............................................................................................................................................................................................................53
PhaseFour: Forms/Documents................................................................................................................................................................................54
SampleRequest for Demand....................................................................................................................................................................................55
BeneficiaryStatement.................................................................................................................................................................................................56
Substitution of Trustee and Full Reconveyance.................................................................................................................................................57
Housing Preservation Program I Procedural Guidelines 5
West Covina Community & Economic Development
Housing Preservation Loan Program
Guidelines
1 INTRODUCTION
The Housing Preservation Loan Program (HPP) focuses on preserving homes within the community by
protecting, preserving, and improving the single-family housing stock. The program is intended to help
rehabilitate and maintain the owner -occupied homes within the City by making available no interest loans to
West Covina homeowners. This program is funded by two different sources. It is funded through the Low -
and Moderate -Income Housing Asset Fund of the Housing Successor Agency and the Community
Development Block Grant (CDBG) of the U.S. Department of Housing and Urban Development. HPP's
second source of funding is the Low- and Moderate -Income Housing Fund (LMIHF). The LMIHF funds are
administered by the West Covina Housing Authority through the Community Development Commission
(CDC).
This program makes available to eligible West Covina homeowners a no interest, thirty-year loan up to a
maximum of $25,000. Borrowers will have a five (5) year deferred payment period. After year five,
households must make payments of the loan outstanding until it is paid in full.
The previous Housing Preservation Loan Program provided eligible West Covina homeowners with a loan
up to $10,000. Homeowners were required to execute a promissory note secured by a deed of trust for a 30-
year loan term. Loans repaid within the first ten (10) years did not accrue interest. After the tenth year,
monthly payments were required to be made and loans accrued simple interest at the rate of five percent (5%)
per annum. The loan could only be used for exterior repairs and improvements and focused on preserving
homes within the community by protecting, preserving, and improving the single-family housing stock.
1.1 Homeowner Eligibility
The following general guidelines are used to determine initial homeowner eligibility for the program:
1. The home to be improved must be within the City of West Covina legal boundaries.
2. Homes to be improved must be owner -occupied.
3. The incomes of all household members living at the residence longer than twelve (12) months are
counted to determine an applicant's eligibility for the program (except as noted below). In the event
of a "new birth" in the household, the twelve-month residency requirement is waived.
4. In accordance to Senate Bill 341, the income limit for CDBG funded loans is 60-80% of the area
median income of Los Angeles County. The area median income of Los Angeles County is revised
annually as set forth in California Code Regulations, Title 25, Section 6932.
Specific eligibility requirements are described later in this Manual.
Housing Preservation Program I Procedural Guidelines 6
1.2 Manual Organization
This manual provides all the necessary forms required for administering the Housing Preservation Program
and includes a step-by-step procedure for each of the program's four major phases:
Phase Action
Loan Application Outlines procedure for reviewing and approving submitted loan applications
Loan Funding Lists process for funding loans for approved applications
Construction Describes instructions for ensuring that the authorized Housing Preservation
Monitoring work is completed in a satisfactory manner
Provides directions for removing the lien on a property when the loan is repaid,
Loan Repayment an outline of the reconveyance process, and the procedure for responding to a
notice of foreclosure
2 PHASE ONE: LOAN APPLICATION
This is the initial phase of the Housing Preservation Program. It requires the homeowner to submit a "Loan
Application Packet" containing forms that must be completed by the homeowner in order to determine
eligibility and approval for requested repairs and/or improvements. Once the application has been approved,
a Loan Folder is created which incorporates the Loan Application Packet plus additional forms. Listed below
are the required forms and procedure for reviewing and approving loan applications. The maximum loan
amount is $25,000. 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.
2.1 Loan Application Packet
The Loan Application Packet is sent to a prospective applicant and contains the documents required for
determining eligibility for the program. The packet includes the following forms:
1. Cover Letter
2. Loan Application Form
3. List of Eligible Improvements
4. Employment and Salary Certification
5. Mortgage and Information Authorization
6. Lead -Based Paint Hazards Acknowledgement
7. Lead -Based Paint Testing Form
Housing Preservation Program I Procedural Guidelines 7
8. Lead -Based Paint Test Deposit Agreement
Each form contained in the Loan Application Packet is described in detail below:
2.1.1 Cover Letter
The Cover Letter is sent to the applicant and serves as a road map for the program. It explains the purpose
of the program, requirements for qualifying, and gives a general outline of how the program operates.
2.1.2 Loan Application Form
The Loan Application Form requests basic personal background information such as applicant's name,
address, gross household income, and household size. The applicant must provide proof of gross household
income for the past twelve (12) months.
The following table provides a list of documents considered acceptable verifications of income:
Type Of Income
Proof Of Income Required
Federal and State Income Tax Return, Salary Certification, Check
Salary
Stubs
Social Security
Statement of Social Security Amount
Welfare
Statement from Caseworker
Pension
Statement of Amount, Copy of Check
Alimony
Court Order (divorce papers)
Child Support
Court Order (child support)
Unemployment
Statement of Award, Verification Form
Insurance
Self -Employment
Federal and State Income Tax Returns
Income
Interest
Bank Statements
Receipt Book (applicant cannot have an interest in more than one
Rentals
rental property)
Housing Preservation Program I Procedural Guidelines 8
Assets and Interest Income are defined as funds in savings accounts or other interest -bearing accounts.
Annual interest is included as income in qualifying calculation; however, eligible applicants must not have
an interest in more than one rental property.
For self-employment income, a 30% deduction will be made for business expenses. This 30% deduction is
in addition to the deduction for costs as well as the costs of goods sold. If an applicant is involved with a
corporation arrangement, then the income of the corporation shall be used to determine income eligibility.
2.1.3 List of Eligible Improvements
The List of Eligible Improvements Form, included in this document on page 25, defines the various home
improvements that are eligible under the program. Acceptable improvements must be clearly visible from
the public right-of-way.
The following priority improvements must be undertaken unless staff makes a determination that the priority
improvements are "not needed":
1. Building Safety Code Violations; and
2. Exterior Painting, Including the Garage
Special conditions and situations will be reviewed and may be approved by a consensus of the Housing
Preservation Committee consisting of the CED Director and staff.
Structural conditions that are unsafe and threaten the health and welfare of occupants and/or neighbors may
be considered eligible. (If questionable, the determination will be made by the CED Director).
2.1.4 Employment and Salary Certification
The information contained in the Employment and Salary Certification Form is essential to verify income
eligibility. The applicant's employer must complete the form and the applicant must sign where indicated. If
the applicant has not worked in the past twelve (12) months, other sources of income must be identified and
documented.
If an applicant claims a person not substantiated by the Federal or State Income Tax Returns, other proof of
residency is required. We require a letter from the applicant certifying that the person resided on a continuous
basis for the past twelve months. Both the applicant(s) and the person claimed must sign the letter.
If a homeowner has a renter or boarder from which monthly rent is collected on a scheduled manner, and that
renter is not a relative of the household, then that renter's income does not have to be counted as income to
the household.
If a person is not a renter and has not lived in the home for twelve months or more, then that person cannot
be counted in the "number of persons in the household" determination.
Housing Preservation Program I Procedural Guidelines 9
2.1.5 Mortgage and Information Authorization
The Mortgage and Information Authorization Form requires the applicant to list all mortgage companies,
banks, and/or savings and loans that hold mortgages on the applicant's property.
CED staff will not approve a loan for homeowners who are delinquent in their mortgage payments.
Homeowners must make their payments current before being approved for a loan from the CED.
2.1.6 Lead -Based Paint Testing
Under CDBG regulations, rehabilitation on residential structures funded by CDBG and built before 1978 are
required to be tested for the presence of lead -based paints. This section will outline all forms and
acknowledgements that will be distributed to applicants in order to abide by all U.S. Department of Housing
and Urban Development regulations.
A) Lead -Based Paint Hazards Acknowledgement
The Lead -Based Hazards Acknowledgement Form notifies applicants of any health hazards
that may be present in their homes due to lead -based paint. The Acknowledgment also
outlines possible lead -based paint poisoning symptoms, lead -based poisoning screening
locations, and lead -based paint poisoning preventative practices. The EPA's pamphlet,
"Protect Your Family from Lead in Your Home" will be attached to this form. All applicants
will be required to complete the form and attest that they are aware of the dangers of lead -
based paint and that the EPA's pamphlet, "Protect Your Family from Lead in Your Home" has
been received.
B) Lead Based Paint Testing Form
All applicants of the program will be required to complete the Lead -Based Testing Form. The
form will offer applicants the option of having lead -based paint testing conducted at their
residences. If an applicant chooses to not have any testing completed at their residence, they
will be unable to qualify for a Housing Preservation Program loan.
C) Lead -Based Paint Test Deposit Agreement
The Lead -Based Paint Deposit Agreement certifies that an applicant will provide a deposit of
$340 for the testing of lead -based paint at their residence. The testing will be completed by a
certified contractor selected by the City.
Housing Preservation Program I Procedural Guidelines 10
If the inspection of a property results in a negative test for lead -based paint, and the applicant
wishes to proceed with the loan, he/she will have the option of having the deposit of $340
reimbursed to them and have the inspection fee financed into the loan. If this option is chosen,
the inspection fee will be drawn from the total available loan amount of $20,000. If the
applicant does not wish to continue with the HPP loan after obtaining a negative test result,
the deposit will pay for the cost of the inspection. Should the inspection result in a positive
test and lead -based paint is detected, the deposit amount of $340 and any further remediation
expenses will be financed into the loan. Inspections are not required to be conducted on
rehabilitation of residential structures funded by the Low- and Moderate -Income Housing
Funds.
D) Lead -Based Paint Remediation Form
If lead -based paint is detected, the applicant has the option of having remediation work
completed in their home. Applicants can elect to have work completed at their home in order
to remediate any health hazards present at the property due to lead -based paint. Remediation
costs will be financed into the HPP loan. Applicants can also choose to not proceed with any
remediation action at their residence. If this option is chosen, the applicant will forfeit the
opportunity to qualify for a HPP loan.
E) Lead -Based Paint Test Funding Source
The HPP is funded using two funding sources, the CDBG fund and the Low- and Moderate -
Income Housing Fund. If an applicant's loan is funded using CDBG funds, the cost of the
inspection can be financed into their HPP loan. If an applicant's loan is funded using Low -
and Moderate -Income Housing Funds, testing of the rehabilitated residential structure is not
required.
2.2 Pre -Qualification Approval/Denial
Completed applications may be mailed or hand delivered during regular business hours in the reception area.
Upon receipt of the application packet, the Loan Application Form will be dated by staff and compared to
the date the packet was mailed to the applicant to verify that the application was submitted within the two -
week turnaround period.
Staff will pre -qualify an applicant within ten (10) business days from the date the completed application
package is received. The applicant will be notified by mail whether the applicant has been pre -qualified or
denied a loan.
Housing Preservation Program I Procedural Guidelines 11
The Loan Application Pre -Qualification Letter gives notice that the applicant has been pre -qualified for a
loan and instructs the applicant to schedule an appointment with staff for a property inspection of the
proposed repairs and improvements.
The Loan Application Denial Letter notifies the applicant that the CED has denied the request for a loan and
the reason(s).
2.3 Setting Appointment for Property Inspection
Applicants who have been pre -qualified pursuant to Section 2.2 are instructed to schedule an appointment
with staff for an inspection of the proposed repairs and improvements.
2.4 Property Inspection Worksheet/Required Photos
The Property Inspection Worksheet is used as an outline for inspecting the property. Key items to look for
besides the proposed improvements/repairs include building code violations, and the condition of the exterior
paint. Please refer to Section 2.1.3 and the List of Eligible Improvements Form for further discussion on
eligible improvements. Photos are used to show the type of improvements needed such as peeling paint,
broken windows, or leaking roof.
2.5 Certification of Approved List of Improvements
The Certification of Approved List of Improvements Form lists the improvements and repairs approved by
the CED. Based on this list, the applicant is encouraged to secure three (3) bids from licensed contractors;
however, the applicant is not required to accept the lowest bid. Bids must describe the work and the cost on
an item -by -item basis. Only improvements approved by CED staff must be shown on the bid/contract.
Contractor bids must be reviewed to check the date and length of time the bid is good. Stale bids can result
in higher prices if not confirmed by the contractor. Be sure trim painting is included in the bid price of
texture -coating or re -stucco work.
The program requires that only a licensed contractor may undertake the required work. It is important that
all contractors asked to bid on a home improvement be informed of the required State and City licenses. A
City business license must be secured prior to approval of the work.
The applicant must be informed that the CED does not become involved in homeowner and contractor
disputes. Payment to contractors will be made upon 100 percent completion of work.
The loan program does not reimburse homeowners for expenditures before participation in the program.
Housing Preservation Program I Procedural Guidelines 12
2.6 Lead -Based Paint Testing
Under CDBG regulations, rehabilitation on residential structures funded by CDBG and built before 1978 are
required to be tested for the presence of lead -based paints. Testing must be conducted by licensed
professionals and should lead -based paint be found, the remediation of either must be addressed and
completed by a license contractor. Rehabilitation of residential structures funded by Low -Moderate Housing
funds are not required to be tested against lead -based paint. As part of precautionary measure being taken
for possible lead -based paint presence in applicant's home, staff will include the Environmental Protection
Agency's pamphlet, "Protect Your Family from Lead in Your Home" as part of the HPP application packet.
It will inform applicants of possible health hazards associated with lead and possible ways to protect against
it.
2.7 Authorization for Loan Funding
The Authorization for Loan Funding Form is sent to the applicant and states the amount of the loan approved,
references the Certification ofApproved List of Improvements, and notifies the applicant of the 15-day period
allowed for executing all loan documents. The bank will not process the applicant's loan without this form.
The West Covina Community & Economic Development will subordinate a loan only if City security for the
loan (the property) is in danger of being lost and/or under special circumstances with approval by the CED
Director. A subordination allows the borrower to refinance their house without having to repay the City as
stated in the Housing Preservation Program guidelines.
If the City subordinates a loan under special circumstances, the homeowner(s) MUST meet all the following
criteria:
• Homeowner may not pull-out equity during the refinance
• Homeowner must be refinancing for a lower rate only
• Lender from the bank must verify that the borrower is unable to pay off the loan with the City.
If the homeowner meets all three criteria, a Subordination Agreement, Encumbrance Limitation Agreement,
and a Deed of Trust and Security Agreement will be required.
2.8 Loan Folder
Once an application has been approved for a loan, a Loan Folder is prepared which contains the following
documents:
Housing Preservation Program I Procedural Guidelines 13
Iteill
Description
Check -off List
Identifies the items that comprise the Loan Folder
for each application being processed.
Cover Letter
See Section 2.1.1.
Employment and Salary Certification
See Section 2.1.4.
Process Control (Income Determination)
Used to document the process used to verify the
income of the homeowner.
Copy of Latest Check Stub
Used to verify the homeowner's income. See
Section 2.1.40.
Copy of Income Tax Return
Used as a means of verifying the homeowner's
income. See Section 2.1.4.
Copy of Proof of Income
See Section 2.1.4.
Mortgage and Information Authorization
See Section 2.1.5.
Lead -Based Paint Acknowledgement
See Section 2.1.6
Lead -Based Paint Testing Form
See Section 2.1.6
Lead -Based Paint Deposit Agreement
See Section 2.1.6
Lead -Based Paint Remediation Form
See Section 2.1.6
To prove ownership of the property in question, a
copy of the applicant's Grant Deed or Deed of Trust
is required.
Proof of Ownership - Grant Deed or Deed of Trust
All persons listed on the deed must sign for the loan.
All persons listed on the deed must have their
respective incomes included and verified when
calculating total household income unless proof of
residency other than subject property is provided.
PHASE TWO: LOAN FUNDING
After a loan application has been approved and contractor bid(s) received, staff must authorize the bank to
fund the loan. The procedure for funding is outlined below. Key to this procedure is the preparation of a
"Funding Folder" which includes all the documents the lender requires before funding.
Housing Preservation Program I Procedural Guidelines 14
3.1 Funding Folder
The Funding Folder is created after a loan application has been approved and contractor bid(s) received. It
contains all the funding documents required by the lender. The documents that make up the Bank Folder are
described in detail below.
Iteni
Description
Property Inspection
See Section 2.4.
Worksheet/Required Photos
Certification of Approved List of
See Section 2.5.
Improvements
Copy of Authorization for Loan
See Section 2.6.
Funding
Contractor Bid(s)
See Section 2.5.
Copy of List of Payment Checks to
See Section 3.1.
Contractor(s)
Iteill
Description
Loan Application Form
See Section 2.1.2.
Proof of Ownership - Grant Deed or
See Section 2.7.
Deed of Trust
Contractor Bid(s)
See Section 2.5.
A letter signed by the Finance Director and the CED Director
authorizing the bank to allocate funds from the Low- and
Bank Authorization to Release Funds
Moderate -Income Housing Asset Fund account.
A copy of this letter must be provided to the CED Analyst to
notify him/her that funds will be released.
Housing Preservation Program I Procedural Guidelines 15
Description
Also known as a "check log".
List of Payment Checks to
Contractor(s)
Prepared by staff listing all the checks and the amounts to be paid
to each contractor.
States the total amount of the loan and all finance charges.
Truth In Lending Disclosure
All applicants are required to read and sign this form stating the
Statement
applicant(s) has read the form and understands the loan terms and
amount.
The legal promise to repay the total loan amounts to the City of
West Covina upon the sale, transfer or refinance of title to the
Promissory Note
subject property.
The bank prepares the Promissory Note (which is provided by
the City). The applicant must read and sign the Promissory Note.
When the applicant(s) signs the loan papers, the bank will also
require that the applicant(s) signs the Notice of Rescission Form
in a specially designated area near the top of the document.
This indicates that the applicant(s) has been notified of the
Notice of Rescission Period
opportunity to reconsider the loan terms within three (3) days.
After 3 days, the applicant(s) must return this form to the bank.
If the applicant(s) wishes to proceed with the contract, the
applicant must sign the bottom of the form, thereby accepting the
loan and its terms.
This represents the City's legal right to the property and is
prepared and filed with the Los Angeles County Recorder.
New Deed of Trust
It is signed by the applicant and notarized. It is then sent to the
City Clerk, who transmits the deed to the Los Angeles County
Recorder's office for recordation.
Made out to the contractor(s) for payment of work completed.
Cashier's Check(s)
See Section 4.7 for final payment procedure.
Housing Preservation Program I Procedural Guidelines 16
3.2 Signing of Loan Documents
The responsibility for scheduling an appointment to sign the required loan documents is between the
applicant and the bank. The applicant has 15 days to sign all loan documents. If the applicant does not sign
loan documents within the 15-day period, the loan approval is void and the applicant must reapply.
Homeowners will be required to sign a Note and a Deed of Trust with Assignment of Rents. All names on
the Deed of Trust must sign for the loan. If a person on the deed of trust does not live in the home to be
improved, that person's income will not be counted in the gross household income if residency can be proved
otherwise.
The Deed of Trust is notarized at the time loan documents are executed.
4 PHASE THREE: CONSTRUCTION MONITORING
Applicants are encouraged to secure three bids on approved Housing Preservation items. Bids must describe
the work and the cost on an item -by -item basis. The applicant does not have to accept the lowest bid. He/she
may select the bid he/she wishes. Only improvements approved by the CED staff must be shown on the
bid/contract.
The Contractor Information Form must be completed and attached to the bid/contract selected by the
applicant. It is important that all contractors asked to bid on a home improvement be informed of the required
State and City licenses. A City business license must be secured prior to approval of the work.
Contractor bids must be reviewed to check the date and length of time the bid is good. Stale bids can result
in a higher price if not confirmed by the contractor. Painting of the trim must be included in the bid price of
texture coating or re -stucco work and payment to contractors will be made only upon 100 percent completion
of work. Up -front payments are permitted only when required by the supplier of certain building materials
that must be custom-made (i.e., aluminum windows).
Below are directions for ensuring that the authorized work is completed in a satisfactory manner.
Housing Preservation Program I Procedural Guidelines 17
4.1 California Preliminary Notice
A California Preliminary Notice may be mailed to the applicant before work begins informing the applicant,
"If bills are not paid in full for the labor, services, equipment, or materials furnished or to be furnished, a
mechanic's lien leading to the loss, through court foreclosure proceedings, of all or part of your property
being so improved may be placed against the property even though you have paid your contractor in full."
If this form is received, it should be filed in the Funding Folder. Once the work is completed and before the
contractor(s) is paid, obtain a release from the contractor(s) who filed the notice.
4.2 Verification of Building Permits, Contractor(s) License, and City Business License
Verify the following and immediately inform the contractor and the applicant if any discrepancies are found:
1. With the Department of Building and Safety that all permits required for Housing Preservation are
pulled;
2. With the California State License Board that the contractor has a valid license; and
3. With the City Business License Department for contractor's current business license.
4. Verify contractors against the System for Award Management (SAM).
4.3 Windshield Surveys
It is important to stress to the applicant and contractor that windshield surveys will be conducted as a means
to monitor the contractor's work. Windshield surveys should be conducted regularly to ensure the home
improvements are progressing in a timely manner. The Code Enforcement Officer as well as CED staff will
conduct the surveys.
4.4 Completion of Work
Upon completion of Housing Preservation, work should be inspected for compliance and homeowner
satisfaction. The building inspector must sign off on all building permits.
There will be no material draws or progress payments. Payment is made through the City of West Covina
upon labor and material lien releases and taking of completion photographs by CED staff. No payment can
be approved without a Homeowner's Satisfaction Statement Form signed by both the homeowner and the
contractor. The appropriate CED staff member makes the approval for payment.
The contractor will not receive payment until Sections 4.5, 4.6, and 4.7 are complied with.
Housing Preservation Program I Procedural Guidelines 18
4.5 Lead -Based Paint Clearance
Once inspection, testing, and abatement of lead -based paint is completed, the City's licensed contractor will
conduct a final clearance inspection to make sure the dwelling is safe for occupants. Final clearance shall
ensure that all hazard reduction work covered in the work specification is complete.
4.6 Homeowner Satisfaction Statement
The Homeowner Satisfaction Statement is completed by the applicant and signed by the contractor to verify
that the Housing Preservation is complete and to their satisfaction and authorizes the City to release payment
for the work. This form must be signed by the contractor and the applicant and returned to the CED before
any payment will be approved. The bottom half of the form is for staff's use and is completed after staff has
inspected the property for compliance and completion of work.
4.7 Release of Labor and Materials Form
To receive final payment, the contractor is required to submit a Release of Labor and Materials form. All
material suppliers must sign, stating that they have been paid or that they waive the lien upon payment being
received. All contractors and material suppliers must submit this form before any payment is approved.
A contractor or material supplier who has not been paid has the legal right to place a lien on the property by
recording a Preliminary Lien Notice. Should this occur, staff may deduct the amount in question from the
total approved contractor's bid price.
4.8 Payment Approval for Work Completed
All contractors who have performed work on the property must complete and sign a Payment Approval Form,
stating that they have been paid or they waive the lien upon payment being received. If a general contractor
did the work, his or her signature is all that is required on the form.
4.9 Homeowner Evaluation Form
The Homeowner Evaluation Form is completed by the applicant to evaluate the program and make any
suggestions or comments that may be useful in improving the program.
Housing Preservation Program I Procedural Guidelines 19
5 PHASE FOUR: LOAN REPAYMENT
The loan in full, is due to the CED when the one of the following events occurs:
1. When the property is sold, or title is transferred;
2. Upon death of the owners (all owners);
3. The property is refinanced, and subordination of the City loan is required by the lender;
4. If the property owner is in default of the loan agreement;
5. When the property fails to be maintained according to City building codes;
6. When the homeowner no longer resides in the house; or
7. Whenever the homeowner wishes to pay off the loan in a lump sum.
Otherwise, the loan is repaid based on the following terms:
5a Loans Obtained After September 1, 2022
➢ Loans obtained after September 1, 2022, will have the following loan terms:
• $25,000 Maximum Loan Amount
• 0% Interest Loan
• Loans will have a five (5) year deferred period. After the fifth year, borrowers must make
monthly payments for the remainder of the thirty (30) year loan.
5b Loans Obtained From 2014 to September 1, 2022
➢ Loans will retain the following loan terms:
• $10,000 Maximum Loan Amount
• Loans do not accrue interest within the first ten (10) years of the loan
• After year ten, monthly payments are required to be made and loans accrue interest at the rate
of five percent (5%) per annum.
The City will allow homeowners with existing loans to obtain a second loan, if they qualify, with the
following terms:
• Borrowers with an existing loan form the CDC/City will be able to obtain a second loan up
to, but not to exceed the new loan maximum loan amount of $25,000. The second loan will
have loan terms outlined described under Section 5a.
5c Existing Loans Obtained Prior to 2014
➢ The following modifications will be made:
• If the City has a recorded Deed of Trust only:
■ Homeowner's interest will be reduced from 5% per annum if they execute a new
Promissory Note reflecting 0% interest.
Housing Preservation Program I Procedural Guidelines 20
• If the City has a Promissory Note:
■ If necessary, respective promissory note will be updated to reflect current format
of document listed under Section 6/Phase Two: Forms/Documents.
■ Interest will be 5% per annum.
5.1 Beneficiary Statement
Upon sale or transfer of title, the escrow agent or title company officer that is handling the sale or transfer of
title of the property will request a Beneficiary Statement from the CDC. The Beneficiary Statement is the
City's formal request for repayment of the loan and any interest that is due.
The CDC will submit the form to the escrow agent or title company officer, who, in turn, will mail to the
CDC the repayment of the loan principal and any interest that is due. It usually takes between two to three
weeks from the date the CDC submits the form to when the CDC receives the loan repayment.
When a check for the loan payback is received, a copy of the check is made for the Funding Folder and the
original is transmitted to the Finance Department for deposit in the Low- and Moderate -Income Housing
Asset Fund or Community Development Block Grant Fund account.
5.2 Release of Lien
Upon receiving full payment of the loan, a Release of Lien Form is mailed by the CDC to the Title Company
for recordation. This form is signed by the Executive Director or his/her designee and notarized.
5.3 Deed of Trust Reconveyance
The Deed of Trust Reconveyance Form is located on the reverse side of the Deed of Trust, which is filed in
the City Clerk's office. Once the Executive Director his/her designee signs this form, it is mailed to the Title
Company for recordation.
5.4 Foreclosure
Below are the steps for responding to a notice of foreclosure:
➢ CDC receives a Notice of Default and election to cause property to be sold under Deed of Trust
• Immediately upon receiving the Notice of Default, notify the Department Head and the City
Attorney's Office.
• Contact homeowner and confirm the Notice of Default. Attempt to identify details of the
default (i.e., how many payments in arrears, past efforts by homeowner to bring payments
current, time period allocated before final foreclosure proceedings take place).
➢ CDC receives a Notice of Trustee's Sale which states the date and place of sale
Housing Preservation Program I Procedural Guidelines 21
• Immediately upon receiving the Notice of Trustee's Sale, notify the Department Head and
the City Attorney's Office.
• Most likely, the City Deed of Trust will be removed in order to allow the home to be sold.
5.5 Bankruptcy
Below are the steps for responding to a notice of bankruptcy.
➢ CDC receives a Notice of Commencement, Discharge of Debtor, and/or an order discharging debtor
• Immediately upon receiving notices, notify the Department Head or the City Attorney's
Office.
• CDC representative attends a meeting of creditors to determine what course of action to
take.
6 PROGRAM FORMS/DOCUMENTS
The Housing Preservation Program is comprised of a number of various forms and documents. Specifically,
each phase of the program requires its particular set of forms or documents to be completed before an
applicant can progress to the next phase. Therefore, program forms and documents are organized by the
phase and the chronological order in which they must be completed.
Phase One: Forms/Documents
• Cover Letter
• Loan Application Form
• List of Eligible Improvements
• Employment and Salary Certification
• Process Control (Income Determination)
• Check -off List
• Mortgage and Information Authorization
• Lead -Based Paint Hazards Acknowledgement
• Lead -Based Paint Testing Form
• Lead -Based Paint Test Deposit Agreement
• Proof of Ownership - Grant Deed or Deed of Trust
• Property Inspection Worksheet / Required Photos
• Certification of Approved List of Improvements
• Authorization for Loan Funding
• List of Payment Checks to Contractor(s)
Housing Preservation Program I Procedural Guidelines 22
Cover Letter
Dear Homeowner:
Thank you for your interest in the City of West Covina Community & Economic Development (CED)
Housing Preservation Program.
The goal of the program is to encourage pride in ownership by offering deferred loans for eligible
home improvements. To qualify, you must be a West Covina homeowner and earn no more than the
maximum income limit established for the program.
If you qualify, you may apply for a deferred payment loan amount of up to $25,000, with no interest.
A $50 processing fee can be added to the loan amount. The loan is secured by a deed of trust;
therefore you must supply CED with a recorded copy of the Deed of Trust to your home.
An inspection of your home is required before any work can commence. Our staff will work with you
in listing the improvements which may be funded through the program. Please note that any and all
building/safety code violations are required to be corrected within a reasonable time period regardless
of whether you choose to participate in this program.
Attached is a Housing Preservation Program application packet which provides answers to the most
commonly asked questions regarding the program. It is very important that you carefully review all
the enclosed documents before you begin to supply the requested information.
BECAUSE THE PROGRAM IS SO POPULAR, WE ASK THAT YOUR COMPLETED
APPLICATION BE SUBMITTED BEFORE THE DATE STAMPED AT THE TOP OF THIS
LETTER In the event your complete application is not received by the CED within the specified
two -week period, you will lose your place on the program's waiting list and have to reapply. If you
qualify for a loan, you will have up to one year to complete all work after the loan is made.
You may mail or hand deliver your completed loan application packet to CED located at West Covina
City Hall, Second Floor, Room 205, 1444 West Garvey Avenue South, West Covina, CA 91790.
Please allow ten business days from receipt of your application for CED staff to process your loan
request. In order for your application to be processed, we must have a complete application.
If you have any questions after reviewing the loan application packet, please call Gerardo Rojas with
the CED at (626) 939-8417 or at grojas@westcovina.org.
Sincerely,
Paulina Morales
Assistant City Manager
Housing Preservation Program I Procedural Guidelines 23
Loan Application
x
HOUSING PRESERVATION PROGRAM
APPLICATION
NAME SOC. SEC #.
(Homeowner)
HOME ADDRESS
(Homeowner)
(Street Address)
SOC. SEC
TELEPHONE( )
(Home)
MOBILE ( ) EMAIL
NUMBER IN HOUSEHOLD
AGE
AGE
(Zip Code)
YEAR PROPERTY PURCHASED
HEAD OF HOUSEHOLD: MALE ( ) ANNUAL GROSS INCOME $
FEMALE( )
NO. OF PERSONS IN HOUSEHOLD WHO ARE EMPLOYED
HEAD OF HOUSEHOLD ETHNICITY: AMERICAN INDIAN ( ) HISPANIC ( ) BLACK( )
WHITE ( ) ASIAN ( ) OTHER ( )
MAXIMUMALLOWABLEANNUAL GROSS HOUSEHOLD INCOME
lFff"6'?m?)
1
2
3
4
5
6
7
S
INCOME
PERSONS
PERSONS
PERSONS
PERSONS
PERSONS
PERSONS
PERSONS
PERSONS
LIMITS
$66,750
$76,250
$85,800
$95,300
$102,950
$110,550
$118,200
$125'goo
I declare under penalty of perjury that the information provided in this application is true and certify that the
Community & Economic Development (CED) and the City of West Covina shall not be held liable for any
damage that may arise out of or in connection with home improvements undertaken under this program. Also, I
authorize the West Covina CED to contact institutions for information regarding the status of loans on my
property.
(Signature of Homeowner) (Date) (Signature of Homeowner) (Date)
Housing Preservation Program I Procedural Guidelines 24
In order for your application to be processed, it is necessary for you to supply us with copies of the applicable
documents listed below which verify your household income. REMEMBER, IT IS UP TO YOU, the
homeowner, to furnish all the information necessary to determine your eligibility. Without your proof of
income, we cannot process your loan application. Please note that completed application packets can be mailed
or dropped off at the Community & Economic Development, Room 205, City Hall.
PLEASE CHECK
TYPE OF INCOME
PLEASE NOTE
PROOF OF INCOME REQUIRED
A.
❑
Salary
1. Federal Tax Return;
2. State Tax Return;
3. Salary Certification;
4. Check Stubs.
B.
❑
Social Security
Social Security Verification
C.
❑
Welfare
Statement from Caseworker
D.
❑
Pension
Statement of Amount, Copy of Check
E.
❑
Alimony
Court Order (Divorce Papers)
F.
❑
Child Support
Court Order (Divorce Papers)
G.
❑
Unemployment Insurance
Statement of Award, Verification
H.
❑
Self Employed*
Income Tax (Federal and State) Returns
(Latest 2 years)
I.
❑
Interest
Bank Statements
J.
❑
Rentals**
Receipt Book
K.
❑
Others
Computation of "Self Employed" income requires a special formula, which will be applied by CED staff to determine household income.
•• Eligible applicants must not have an interest in more than one rental unit and must reside in the unit to be improved.
Please note that the following chart illustrates an overview of the program's steps and the order in which they occur:
Phase One:
Loan Application
• Application Submittal
• Pre -Qualification
Approval/ Denial
• Property Inspection
by City Staff
• Certification of
Approved List of
Improvements
Phase Two:
Loan Funding
• Execution of Loan
Documents
• Authorization to Start
Construction
Phase Three:
Construction Monitoring
• Completion of Work
• Homeowner
Satisfaction Statement
• Payment of
Contractor
Phase Four:
Loan Repayment
• Loan Repayment
Housing Preservation Program I Procedural Guidelines 25
Permitted Improvements
HOUSING PRESERVATION PROGRAM
PERMITTED IMPROVEMENTS
All of the following repairs, improvements, installations, or removals must be visible from the public right-
of-way.
Building Code Violations
Exterior Painting
Landscaping
Tree Trimming & Removal
Roofing
Stucco/Siding
Handicap Access
Sidewalks
Driveways
Cement Entryways and Walks
Garage Doors
Front Doors
Windows
Exterior Lighting
Eaves
Rain Gutters
Fences/Block Walls
Porches/Balconies
Central HVAC
Water Heater
Energy Conservation
ADA Accessibility
Other Improvements
In addition to the list provided above, modifications to conditions that are unsafe and threaten the health and
welfare of occupants and/or neighbors, including structural modification and repair, may be considered
eligible. (If questionable, the determination will be made by the CED Director).
Definitions of Eligible Home Improvements
Any building code violations must be corrected along with the listed exterior home improvements. The
following definitions have been prepared for the purpose of clarifying the described home improvements
that are eligible under the Agency's Housing Preservation Program. They are not intended to be an
exhaustive list; rather they are presented in an effort to provide examples of common, eligible exterior
improvements.
Exterior Painting. Includes house and garage. Must be undertaken if needed as determined by the
Program Coordinator and/or Code Enforcement Staff.
Tree Trimming & Removal. Trimming and/or removal of trees that are overgrown, overcrowded, or are
causing problems with the landscaping, sidewalks, or structure on or near the property due to exposed roots.
Roofing. Repair and replacement of roofing (Building permit required).
Stucco/Siding. The plastering or installation of stucco and siding to a home to improve and extend its life is
eligible. Also, repairs, patching, and filling holes in the surfaces of walls is eligible.
Handicap Access. All modifications, alterations, or additions oriented to facilitate access and use of the
home by the disabled are eligible. These include installation of ramps, door widening, and other adaptive
measures to the exterior of the home.
Sidewalks. Repair and replacement of existing sidewalks to increase safety and overall appearance of the
property are eligible (Engineering permit required on right-of-way).
Driveways. Repair and replacement of existing driveway (Engineering permit required on apron)
Housing Preservation Program I Procedural Guidelines 26
Entryways/Walks. Repair and replacement of existing entryways and walks, including the addition
brick work, composite pavers, and associated materials used to improve the overall appearance of 1
building entry. Also includes the installation of new walks where appropriate.
Garage Doors. Repair or replacement of garage doors, including the replacement of broken sprin
Installation of automatic openers are only eligible for the handicapped and elderly.
Front Doors. Repair or replacement of the front doors. Any structural modifications to include wideni
require appropriate Building department approvals. Installation of wrought -iron security doors is i
eligible.
Windows. Repair or replacement of the windows facing the public right-of-way. Any structu
modifications to include widening require appropriate Building department approvals. Installation
wrought -iron security bars covering the windows are not eligible; however, repairs to existing screens
eligible.
Exterior Lighting. Installation or repair of exterior lighting. Includes landscaping lighting and secur
lights as well as automatic timers for the system. Any associated electrical modifications need to
approved and permitted.
Eaves. Repair and replacement of building eaves. Structural modifications require appropriate permits a
approvals.
Rain Gutters. Installation of rain gutters on the house as well as the garages is eligible.
Fences/Block Walls. Repair and installation of fencing/block walls is permitted only when they faa
street or public facility (Planning permit required).
Porches/Balconies. Repair and installation of porches, terraces, and balconies that face a street or pub
facility. Structural modifications require appropriate permits and approvals.
HVAC System. Repair, replacement, or installation of heating, ventilation, and air conditioning in
Includes furnaces, air conditioners, heat pumps, ductwork, thermostat, and home comfort controls.
Water Heater. Repair or replacement of water heater. Building Department approval required.
Energy Conservation: Repair/Replacement/Installation of solar panels and solar system batteries.
ADA Accessibility: All modifications, alterations, or additions oriented to facilitate access and use of 1
home by the disabled are eligible. These include installation of ramps, door widening, and other adapt:
measures to the exterior of the home.
Other Improvements. Associated improvements not listed above which will improve the over
appearance of the property from the public right-of-way are eligible. All improvements require pr
approval from the Program Coordinator.
Housing Preservation Program I Procedural Guidelines 27
Employment and Salary Certification
HOUSING PRESERVATION PROGRAM
EMPLOYMENT AND SALARY CERTIFICATION
The following information concerning:
NAME
(First)
(Middle)
(Last)
ADDRESS
(Street Address) (Zip Code)
SOCIAL SECURITY NUMBER
TEL. (
is requested to verify eligibility in the West Covina Community & Economic Development Housing
Preservation Loan Program.
Full Time ❑
Employed by Part Time ❑
(Name of Company)
U
(Address of Company) (Telephone)
Period of Employment: From
(Date)
to
(Date)
Total Gross Wages (before Taxes), Commissions, etc., paid the above employee in the past twelve (12)
months from receipt of this form:
Signature of Company Payroll Clerk
Signature of Applicant
(Date)
(Date)
IF YOU HAVE ANY QUESTIONS, PLEASE CALL THE CED AT (626) 939-8417
Housing Preservation Program I Procedural Guidelines 28
Process Control (Income Determination)
HOUSING PRESERVATION PROGRAM
PROCESS CONTROL
Name
Address
Telephone (
1. Total persons in household: verified by:.
(Documents)
2. Total persons receiving income:
3. Total income for the past 12
4. Show how total income was calculated:
Name of Person
Income Source
No. of
Months
Gross
Monthly
Earning
Total
Gross
Earning
Proof/Income
TOTALS
Housing Preservation Program I Procedural Guidelines 29
Check -Off List
HOUSING PRESERVATION PROGRAM
(HOMEOWNER) (ADDRESS)
RECEIVED BY
REVIEWED BY
APPROVED BY
L APPLICATION
2. HOUSEHOLD INCOME INFORMATION (ONE OR
MORE OF THE FOLLOWING INFORMATION)
A. PAY CHECK STUBS
B. PENSION VERIFICATION
C. LATEST FEDERAL INCOME TAX RETURN
D. FINANCIAL STATEMENT (SELF-EMPLOYED,
IF APPLICABLE)
E. SOCIAL SECURITY
3. EMPLOYMENT & SALARY CERTIFICATION
4. DEED OF TRUST, GRANT DEED, TITLE POLICY
(LEGAL DESCRIPTION)
5. MORTGAGE INFORMATION FORM
6. LEAD -BASED PAINT CERTIFICATION
7. CONTRACTOR'S INFORMATION FORM
8. ALL NEEDED PERMITS HAVE BEEN SECURED
9. PRE -IMPROVEMENT PHOTOGRAPHS
(POLAROIDS & PHOTOGRAPHS)
10. HISTORICAUARCHITECTURAL
ASSESSMENT FORMS, FLOOD
CERTIFICATION
11. WAIVER REQUEST (IF APPLICABLE)
12. LOAN APPROVAL
13. POST -IMPROVEMENT PHOTOGRAPHS
(POLAROIDS & PHOTOGRAPHS)
14. HOMEOWNER'S SATISFACTION DECLARATION
15. EVALUATION FORM MAILED TO HOMEOWNER
* PLEASE ENSURE THAT ALL FORMS ARE COMPLETE AND SIGNED BY ALL PARTIES TO THE LOAN WHERE INDICATED.
Housing Preservation Program I Procedural Guidelines 30
Lead -Based Paint Hazard Acknowledgement
HOUSING:PRESIXVATION PROGRAM
IEIOXff OWNERLNFORMATION
LEAD -BASED PAIATHAZ4RDSA CLW0ff=GM=
LFAD-BASKS PAINT- Lead -based paint can he present m bath e:#= and Intmor nnfaces m &Dartran and
hCM05. TJJS thPE Of mintbE Liad 1 �==7 k0t b-mce 12-3 and u�� �E --�-Lt iL olds_ �ouim stud
- p3j.-. LI 3 .9zLzj
p2d: Zip ci oe_vie .::-E. Lj. L-Eqju{.,. :n PWCAE.. raui--, doarn,
nwdnwlC sad m hahmmj�
HEALTH ELIZARDS. Laad PE)Loning i-- a Dajous and ccn=_� I -J-J I c. m our coiraw It can endanger any
o cupaut of hou-mg. Hmva%,er, LW[dien and J, are L��_J < i:L !.:Z:_ _ ':._RL _ 1 r . ChIPS are smrsa a chsNsd. Lead
ponmman& ei fmm mnall ammo . nmv came intellects a risamL. bUbdLm5s. pmah-dq md death.
WHATARE THE 3Y%IFTO'%F_" F t [hare mac be no Dbviaus signs of lead poLoning. S?mpt= appqa- as En_
namb=- f -1 J(Loo:-f -IJ naL cznttuit and chronic stDmAcb aches, vonmtin . nel�jc_s:.zL: o�
3PPELL-A OL tAe C:i f-=qL-,ndl la -IL 1., ;,a. bz a ma" Tiffn. Sunpt= EoradiAts mvinclu, =n
M—d- cramping,
-, adem*haanng -as otharz.
WHIRE TO 3HEK HELP. n,: 1%3d: 3 :.'I: '1We: t�� azE of -.0v
I- -'t -!k ;.=z, j: jZ_j- Dx-=x, .,d-
ba_6 -Lim c-eninE and treEmmr if ne:e=. Some z- aL of the c._- far =ninE ro be pail Medj-CL.
PRFI=ON- Don" Ln and JE-Mm- lead-ba<E-d paint Knev paint2d =rfaces in good Condition m mmimixe
deberimmfiDn.
ADDITIONAL LNFURMATIO1`. kttadaed iro can Ewd iiie HUD iequirEd ofDnnatimal pamphlet = lead -based
paint h pToviden information regarding possible health baaarda mmKiatA trith lead -based pait3i and pomihle nmv to
protect a5akst it.
As a Jidenced by my sigmafure, I hate mad this required information on iU hazards of lead -based paint and
attest That I hate received [be attached pamphlet.
Homeotmer SiDiattim Date
please Print:
NAME
ADDRESS
TELEPHONE (
IF YOU HAVE ANY QUESTIGNS. PIZASE CONTACT COMJUMTY AND ECDNWEC DE%TLGRaNT
STAFF AT (626) 939-3417
Housing Preservation Program I Procedural Guidelines 31
Lead -Based Paint Testing
HOUSING PRESERVATION PROGRA161
H03AF-OWNER ACKNOWLEDGEMENT
LEAD -BASED PA17VT M MVG (CDBG Loans Okdv)
LEADLMSED PAINT. Lead -based paixt can be preset in both exb3ior and interior surfaces in 3paxia3est= a-:1 :-::-e_.
This type ofpaixtmay be Sound in bomes built before 1979 and may be present in our City's older bousing al:a L•'_._c.n _,.
ecem after periodic repainting. Lead -based paint can resurface and pose a hard when paint surfaces crack;
chip or become loose. This most frequent, occurs mm walls, stairs, porches, ra•los, windows, do=. woc&� 3.,.. 3::J Lin
hallways -
TESTING. Linder U.S. z_rousine and Urban De•:elopmert reeu1n,,)i s, rehEbilitaticn or..es:-k:1 _-
n.1•=tue> L•.1ilt ei•�re :� :tit-- te�te•:. te: _;e 7;r=see]•=e ea]-:a�.ec. 1ai11-. e Hc.u,ht_ Presr:-_-i:n
?..,st- -P". -c;c.e•:. l•: C----=;-c---: �:1: Oval I:CDRG:H:e:e Lm, a=e
re�uLre�tC•:a-:u.•` I..:L:7 e=:llzt:.::;e. P.e :.-n:F:e:= tte rs te:•:e Dt:I let L=•::.1 ul:: .:::e
]I;'. e 3: 311,P•'C:L:11 :�•[:_�:?:::: _: _: •O'_L" �_c•E M. If ou �::c•: == to=•r:ee:l •:::_] dte tes:ill=. •:: e :•:::] r:Iiltzte =_ ::_te
1:::a-Qrtc•:::r L.. -::J %:IL: p•r:P_lt; ali:1 :C•r._u:t tY-e :r.:e:te:. Ik::;e r.:t t:::a•: a -es:ill=
._rdu=tec a- -:°-= -e::ce _ce. •.','_',•.i-- =;.,: x 1:_-..e t_ Irz=eec';.'it t-le =PP cpp:'-=_t:°=: -- _ea]-:asec. n- r. i,
sound at your residence, nit=anon trill he funded thi,=n the HPP ioan up to U2 I� 1"
❑
Yes; I would like to bate Lead -based Paint tenting conducted at my residem .
❑
.•-.'..-a__J::Ct I:L.-113�e_=3:::3:=:1 Pin - - t:n= ce, au- :. at Lin__ a--I]`3 Z-:1
3 1=:.== 1 --':.l `::"]e aLI= -n •rCCEEJ :old] Cl]7333:::'.2 a HOP Ia3:-. n_ ed l]3' CDBG. n_ s
A> es idea ced b} im dElla run.I ac"n (edge the selection made above.
Homeonner Signature
Homecnmer Sipnahae
Me= print:
NAME
ADDRESS
M. a■ �-MA
Date
IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT COhIMUNITY AND ECONOk1IC DEVELOPIM4T
STAFF AT (626) 939-8417.
Housing Preservation Program I Procedural Guidelines 32
Lead -Based Paint Testing Deposit Agreement
����♦,,;�
Mot
HOUSING PRESERVATION OZ PROGR ttI
LL D-B-; cLD P-3LVTDEPOSIT .4GREE.V E -T
The uai-era-,ned paA t•_ tie C;r: of West Cmina the sum of $ 340.00 as a deposit For
Lead -Based Pair.- tes-:az f- -t e Ineri:ses lacated at West Couna, CA 9179=
This deposit car, be = a -iced into the Housing Preservation Program (HPP) loan under the following
circumstances:
'-f z l egatiee Lead--3sed �atit -e=.t res-.i - is o'tamed.
=f l e 3_ pl •=ar- .::sites -c rccee:l •.•::ti t,e HPP loan after ,-ta::i-nE a negatil-e test result,
l:e'site -3-d! -.'e the cp cr. :r the deposit reimt•:r::e•d to them and have the
in_pecti::i `ee ':narce•a ir.-c• ±- lozr. I: the appl zar.- die rct -:a`i c3 continue with the
HPP loam the deposit gill pay for The cost ofthe inspection.
a If z Po dttse Lea3 :ased'?ai:tt test mu" is o:tained.
-f re ap :ic-it t'itneS -.-• ;ro•-ee•d iti tie I-�? loan after obtaining a positive test result,
1:e 3:te -=::1: i_•: e l:e : --:, r. c=1:a-. ir.- d=e pep•:::- reimbursed 'c them and ham a the test fee
=rarce:1 jr-'. ±= 10�; If tie a_pl •=ar- ckes rot -= a t•: c::vir.'.ie -::r tie HPP loan, the
•,:ill Pa; for the ccn Of tie .eat. If lead -used Paint is P:'an:. at your residence,
ri:-:nation can he funded through the HPP loan up to the $25•000.
Als evidenced by my signature, I agree to the teams of this Lead -based Paint Deposit Ageement and Lace
pmiided the required deposit of S340.00.
Homeowner S3Mmhae
Date
Homeowner Signature Dam
Please print:
NALECS)
ADDRESS
IOtI '.IJ
IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT COO MUNITY AND ECONOMIC DEVELOP-MENT
STAFF AT (626) 939-MIT
Housing Preservation Program I Procedural Guidelines 33
Lead -Based Paint Remediation Form
DES'`T5
HOUSING PRESERVATION PROGRAM
HOMEO',VNER ACKNOWLFDGEMENT
LEAD BASED PALh7. EV EDIri7T0N'
The results ofyom Lead -based Paint inspectim are attached for yo reference. The results indicate the following:
❑ Lead-L•a_ed Faint has Leer detested at •: cur residence
❑ ti:Leec-h_:ec?alrtce:e::edztr:ure=i:ier.ce
-- •:::r i1t:tee-t •::; :=::t:t ldl t::e ;I=te•-t •:f Le=c.-l_ e::: =_::t Lt.;:ur residence, you can elect :: ]t=_,e t::e
:ea:l-�asec. p_ :1- I-mec.:atec. x pi, -: ec. c it :: tut re'n,J atkn of _;e >u rar: a at • ors residence. Lf •. eau
.,.=tE -Fe rer-ec.:at:a-. •. •3-1 •..::1: nl-ee.. -: auhiut l:c.=. f:•r ]te - 4iwl-a Anil- : a-:c•r. -•::11:. e :a=t :'t::e
rer-ec.:=-t =3) -.e _•_Iud,--: =-s 11 of • :tc ='-i `=;` �=ese-: a.:e- ?..'= _- -�i :111. = lease be i:ed that :r
.:_i e -t no: to -:Ild n a r: rerec:at e- of tFe leec. l sec paint at r .uu _e> _�ence, _. ou Hill not be able to prxeed
A-_ ninr a H-P P:ea_e 11. a." us of %-ur mten-t•: c-,=> t:n=-sue .':l:11 Ire box
j_j
Yes, I will Pwsue Lead -based Paint remediation purmatato the report attached.
NeT�, llrapu,:fetch.earryLead-hsec.�ani21111�'.a1^n_t"17: re? o.en-,d-d11rct
❑
be =_b.e :: pi --eec :.iL: c•l•tams a=T� 1=- uded t ----Efi =J1. -. xae= :f. t ;e Cit::_': est C:•.-in=_
front fiuther aetiou or hahility pPrtaininu to the Lead -based Paint detected in nr residence -
As evidenced by my signature, I attest I pare received the lead -based paint inspection report for my
residence and aclmoivledge my selection made aboie.
Homeowner Signature
Homeowner Sigma
Please pri t
NAME
ADDRESS
TELEPHONE
Date
IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT CON MLmIITYANDECONOMIC DEVELOPhIENT
STAFF AT (626) 9394417.
Housing Preservation Program I Procedural Guidelines 34
Remediation Contractors
HOUSING PRESERVATION PROGRAM
REAL DL4TION CONTRACTORS
The fallowing is a list of Remediation Contractors_ Homeoumers are not required to use any of the
contractors on the list, but may use it as a guide to narrow their search m finding a company tc) complete
remediation at their residence
QuahtyEn%munmeatat Inc-
13123 Lakeland Road
Santa Fe Springs, CA 90670
(562)941-1434
Air Inc_, DBA Air Demolition & Etroro me: ta] Solutions
3517 W. Washiagtm Blvd,
Los Angeles, CA 90018
Alliajtce E-n iro:une:rtal Group, Inc-
'6D Ean Debra -aae_ Anaheim CA 928D5
990'.L . -eat-i 5 Teet, Azusa, CA 91702
(62,6) 833-3�110
?&] Err: ircranentai Construction Corp_
�Tee-
A5u
6_, i9=416=
KB Environmental, Inc.
1812 W. Burbank Blvd-_ Suite 343
Burbank; CA 91506
Advanced Quality Hazmat Industries.
9_` 1_ ?-i'mess e. Suite E
Ran.- 'Cucamaaea- CA �l 7 A
]3>-344
(800 i 421-3080 Toll Free
IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT CD_l'i KJNITY AND ECONMAIC DEVELOPM=
STAFF AT (626) 939-8417_
Housing Preservation Program I Procedural Guidelines 35
Mortgage and Information Authorization
HOUSING PRESERVATION PROGRAM
MORTGAGE INFORMATIONAUTHORIZATION
HOMEOWNER'S NAME
(Street Address) (Zip Coda)
TELEPHONE ( ) ( )
(Home) (Work)
Please list all mortgage companies, banks, and/or savings and loans holding mortgages on your property.
1.
COMPANY NAME
COMPANY ADDRES
COMPANY TEL. NO.
LOAN #
2.
COMPANY NAME _
COMPANY ADORES
PAYMENT AMOUNT:
UNPAID BALANCE:
COMPANY TEL. NO. PAYMENT AMOUNT:
LOAN #
3.
COMPANY NAME _
COMPANY ADORES
COMPANY TEL. NO.
LOAN#
UNPAID BALANCE:
PAYMENT AMOUNT:
U10119Mq
I certify that the above information is true and I hereby authorize the West Covina Community &
Economic Development to contact the above institutions for information regarding the status of the
loans on my property.
Signature of Homeowner
hi@t9bb
Date
Housing Preservation Program I Procedural Guidelines 36
Proof of Ownership — Grant Deed or Deed of Trust
Order No.
Escrow No.
Loan No.
WHEN RECORDED MAIL TO:
SPACE MOW IRIS LME FOR RECORDER's USE
DEED OF TRUST WITH ASSIGNMENT OF RENTS
(SHORT FORM)
This DEED OF TRUST, made
whose address is
between
herein called TRUSTOR,
(Number and Street) (City) (Stale)
FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called TRUSTEE, and
herein called BENEFICIARY,
WITNESSETH: That Trustor grants to Trustee in trust, with power of sale, that property in the
County of , State of California, described as:
together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and
conferred upon Beneficiary to collect and apply such rents, issues and profits for the purpose of securing (1) payment of the
sum of $ with interest thereon according to the terms of a promissory note or notes
of even date herewith made by Trustor, payable to order of Beneficiary, and extensions or renewals thereof, (2) the
performance of each agreement of Trustor incorporated by reference or contained herein and (3) payment of additional sums
and Interest thereon which may hereafter be loaned to Trustor, or his successors or assigns, when evidenced by a promissory
note or notes reciting that they are secured by this Deed of Trust.
To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each
and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set
forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the
fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18, 1964, in the book
(continued on reverse side) ttba(„g,)
Page 1 d
Housing Preservation Program I Procedural Guidelines 37
Property Inspection Worksheet / Required Photos
HOUSING PRESERVATION LOAN PROGRAM
PROPERTYINSPECTION WORKSHEET
NAME
ADDRESS
TELEPHONE ( ) ( )
(Home) (Work)
PRIORITIES
DESCRIPTION OF WORK
YES
NO
EXTERIOR PAINT
❑
❑
CODE VIOLATIONS
❑
❑
SMOKE DETECTOR(S)
❑
❑
EXTERIOR
ROOF
❑
❑
DRIVEWAY
❑
❑
LANDSCAPE
❑
❑
WINDOWS
❑
❑
POOL SAFETY
❑
❑
STUCCO
❑
❑
OTHER
❑
❑
IF YOU HAVE ANY QUESTIONS, PLEASE CALL THE CED AT (626) 939-8417
Housing Preservation Program I Procedural Guidelines 38
Certification of Approved List of Improvements
HOUSING PRESERVATION LOAN PROGRAM
CERTIFICATION OFAPPROVED LIST OF IMPROVEMENTS
NAME DATE
ADDRESS
Congratulations!
TELEPHONE(
The improvements and repairs listed below have been approved. Based on this approved list, you
are encouraged to secure three bids from licensed contractors. Contractors must be licensed by the
City and State prior to the approval of any work. Bids must describe the work and cost on an hem -
by -item basis. Remember, you do not have to accept the lowest bid. BIDS MUST BE
SUBMITTED WITHIN 30 DAYS FROM THE DATE OF THIS LETTER
Please note that the Community & Economic Development (CED) does not recommend
contractors, have a contractor's list or get involved in homeowner and contractor disputes. All
homeowners are responsible for hiring contractors. The CED also does not reimburse
homeowners for expenditures made outside of the Approved List of Improvements or for work
completed prior to your loan. Once CED staff has received the bids and you have selected the
contractor you will coordinate with the bank to sign loan documents. After loan documents are
signed and CED has confirmed proper execution of forms, you may start construction. Once
you (homeowner) are satisfied with the work completed, and all required signatures are present,
checks are issued. There will be no pre -payments.
If you have any questions, please call CED at (626) 939-8417.
Improvements Approved
1.
2.
3.
4.
5.
6.
7.
Housing Preservation Program I Procedural Guidelines 39
Authorization for Loan Funding
HOUSING PRESERVATION LOAN PROGRAM
AUTHORIZATIONFOR LOANFUNDING
Dear Homeowner:
Congratulations!
Your application for a deferred loan has been approved in the amount of $
This amount includes the bank's processing fee of $50.
Please call Pacific Western Bank at (626) 919-5761
documents. You will have fifteen (15) days from _
documents. Once you sign the loan documents,
necessary work.
to schedule an appointment to sign your loan
to sign the loan
you will have 12 months to complete all
If you miss the fifteen -day period, this Authorization for Loan Funding becomes void and you
will need to reapply for the program.
If you have any questions regarding these procedures, please call the Community & Economic
Development office at (626) 939-8417.
Sincerely,
Paulina Morales
Assistant City Manager
Housing Preservation Program I Procedural Guidelines 40
List of Payment Checks to Contractor(s)
HOUSING PRESERVATION LOAN PROGRAM
LIST OF PAYMENT CHECKS/CHECK LOG
This is your authorization to make the following cashier check(s) payable to:
NAME
(HOMEOWNER)
ADDRESS
CHECK # CONTRACTOR NAME
Approved by:
Authorized Signature
Finance Director
1107"I'A
TELEPHONE( )
AMOUNT DATE
ISSUED
Subtotal $
Bank Fee $ 50.00
Total Loan Amount $
Paulina Morales
Assistant City Manager
Housing Preservation Program I Procedural Guidelines 41
Phase Two: Forms/Documents
• Bank Authorization to Release Funds
• Truth In Lending Disclosure Statement
• Promissory Note
• Notice of Right to Cancel
• New Deed of Trust
• Waiver Request
Housing Preservation Program I Procedural Guidelines 42
Bank Authorization to Release Funds
HOUSING PRESERVATION LOAN PROGRAM
BANK A UTHORIZATION TO RELEASE FUNDS
Pacific Western National Bank Date
200 South Vincent Avenue
West Covina, CA 91790
LOAN #
This is to inform you that a deferred loan in the amount of $ has been
authorized by Community & Economic Development (CED) for
(Homeowner's Name)
This approval is good until
reapply.
after which the applicant must
Repayment of the loan occurs when 1) The property is sold or title is transferred; 2) Upon
death of the owners(s); 3) Whenever the owner wishes to repay the loan in total; 4) When the
owner no longer resides in the home; and, 5) The property is refinanced and subordination of
the CED's loan is required by the lender.
Please debit our account #XXXXX for the amount of the loan being approved and prepare the
checks per the attached List of Payment Checks to Contractor(s).
Reviewed by:
Gerardo Rojas
Economic Development
Project Coordinator
Authorized Signature
Finance Director
Approved by:
Paulina Morales
Assistant City Manager
Housing Preservation Program I Procedural Guidelines 43
Truth in Lending Disclosure Statement
TIUJM-mi-IJn9DMG DISCLOSURE STATEMENT
Cd RN ACONIRA NORACOSQOIHYJPy10I )
PP h,.. PbpaCRr
A,p .Wa: D IG,P
ANIaUALPkBIlHCA(Z
FINA4PLE
AAOONC
iQGi6
HAlE
CBA1C�
FIItL4tl®
PAYC@1S
Thetmarymat,edeb.ymy
u bmm[mememt[w
Stemmm�armem[Pmt;aedm
'me.mam[rmaw w.e pna
to
ccst
eoftym
vaammyma DeWlf
a1@rmakiog Jl Paymemu
scDMvled
t
$
3
S
[I REQUdRED])EPOSSI IDe pmemp abdmm e=oeccamt rega dry t
PAYA4 Y.ppj] ,
�tnleika
P.�e lea�r• Abim• rb I 4 A , Is Q.a N..e�• Pnee•' I��
bb►1
ean.r sxeY4+� mwrP}ee
❑ OflMALID FFAl1RE: Iida obG,.mGba demmd home.
VARIAB[.EHA]B PEANItE'. IDislmmmioz a fwde mehatme. A fwbh mm diulosmehasbempmtided eatlia.
®'PIAPE�iO6AHQSIY: Caedvl6emmmcemdme3tdatilitYmmmce..revpvMbobobaeJt,
OdYillval'pr ....CalbflmbmmdeDaemPaY tlae add[domlmn.
Oe6efih IvaaeditlAe bbmQ.
Oe D-Waty Iffy melt divbLTiatez Seta:
Qedialih md' IffmueAC Lfe md' ®ma.
SNS[]BATA> The hGamS m v aymal b aM® me
❑0edilik� ❑fiedudvAhiay ❑Ptepmyinmame ❑Food ice
Ya rp a4bhtYm®te Gam ymwmbu ss amgeabemaeiam
❑XyaPbeYb ❑PmPay Ll Beod hmbce Gam rnNu wo NlMi fma me�ea tam
SECTIIVIIY: Ym a 9ebG a scurvy oft h
❑The PadfbP[RaAb®6Pmcvbed ❑ReLLpopatyvm abeadyoa
FlLIIIGF'FhS:3
IAIE CNaers. Rapafmmumbeda dayt lam ym mi➢be cGaFal ',:IXa WSmem
PRFDAYl1F]tI If WfaGeah.Taa
❑M �J aiRm hauem M'apmsltq.
❑eay ❑mdlm beemlad mareGvd a(pat a(be Gmvre clm)f
ASSIRAPIIOK:Smeove Mioeymrprapety
❑mN ❑mad. mlJatmco>dmms E1mrvm atsmeme temabda ofga bmmdem�tent.
Sb ym cet'mttdmmmc:m aay �LtneLL ivmmaem abm mquymm. default a'mgmsMnpeymmnhLL bef he ssvedNed tla
adpsgaymaa tetwis nrApmalves
❑•mmeesm+re ❑Yl Cab al®mcal darlusasexcep he Lte payma Cimlmena bvmam.
..No211. P.ryun .tow.bm eW.�r 4p.sse fur a.np.e. m.e.... (x yp�:ow.)• bsoAV P..PnI x.... mai.........
1HE IRR)@9GAFD AC[O:OWIIDCdS RQIIVINGA C011PIEfEO COPY @'
Qalb Abe)
cp.iwn-baP1bIL1
Housing Preservation Program I Procedural Guidelines 44
Promissory Note
HOUSING PRESERVATION PROGRAM
PROMISSORYNOTE SECURED BYDEED OF TRUST
For value received, the undersigned jointly and severally, promise to pay to the City of West Covina Community &
Economic Development ("CED") at the CED office in the above -named City, the principal sum of
Dollars ( ) with interest at the rate of zero percent (0%) per annum in
accordance with the terms of this Note set forth below.
The term of this Note shall be for 30 years commencing on (Date).
This Promissory Note shall not bear interest for the life of the loan. At the end of the first 5 year period, the
undersigned shall commence making equal monthly installment payments of $ on the first day
of each month, to CED over the remaining period of this loan (25 years). Payments shall be credited towards
principal.
2. This loan may be prepaid at any time without penalty.
3. The entire amount of principal shall become immediately due and payable upon the happening of any of the
following events:
a. At the time title to all or any part of the property described in the attached Deed of Trust is
encumbered or refinanced or is transferred to other than the present recorded owners of said
property. In such event, the undersigned hereby assigns the proceeds of such transfer to CED to
pay the then existing balance of this Promissory Note.
b. Upon the death of all of the undersigned.
C. At the time the Deed of Trust securing this Promissory Note becomes voluntarily or involuntarily
subordinate to any other Deed of Trust or Promissory Note, except as to any Deed of Trust or
Promissory Note existing on the date this Promissory Note is signed.
d. At the time all of the undersigned no longer reside in the property described in the attached Deed
of Trust.
e. If any of the terms of this Promissory Note are in default by the undersigned.
4. The undersigned further authorize the CED to record a Deed of Trust on the real property located at
as security for the payment of this Promissory
Note, and reflecting the CED's interest in the proceeds of any sale, conveyance, mortgage or other transfer of
title to such property for consideration.
5. Payment shall be made in lawful money of the United States. Should this Note fall into default and legal action
is taken on this Note, Uwe promise to pay such sum as the court may fix as attorney fees.
Applicant Date Applicant Date
Housing Preservation Program I Procedural Guidelines
Notice of Right to Cancel
NOTICE OF RIGHT TO CANCEL
Loan Number: Date
Borrowers:
Property Address
YOUR RIGHT TO CANCEL:
You are entering into a transaction that will result in a mortgage, lien, or securityinterest onfin your home. You haves legal
right under federal law to cancel this transaction, without cost, within THREE BUSINESS DAYS from whichever of the following
events occurs last:
1. the dale of the transaction, which is ; or
2. the date you receive your Truth in Lending disclosures; or
3. the date you receive this notice of your right to cancel.
If you cancel the transaction, the mortgage, lien, or security interest is also cancelled. Within 20 CALENDAR DAYS after we
receive your notice, we must take the steps necessary to reflect the fad that the mortgage, lien, or security interest on/in
your home has been cancelled, and we must return to you any money or property you have given to us or to anyone else in
connection with this transaction.
You may keep any money or property we have given you until we have done the things mentioned above, but you must then
offer to return the money or property. If it is impractical or unfair for you to return the property, you must offer its reasonable
value. You may offer to return the property at your home or at the location of the property. Money must be returned to the
address below. If we do not take possession of the money or property within 20 CALENDAR DAYS of your offer, you may
keep it without further obligation.
HOW TO CANCEL:
If you decide to cancel this transaction, you may do so by notifying us in writing,
Name of Creditor:
at
You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this
notice by dating and signing below. Keep one copy of this notice because it contains important information about your rights.
If you cancel by mail or telegram, you must send a notice no later than midnight of (or midnight
of the THIRD BUSINESS DAY following the latest of the three events listed above.) If you send or deliver your written notice
to cancel some other way, it must be delivered to the above address no later than that time.
I WISH TO CANCEL
Date Signature
I/WE ACKNOWLEDGE RECEIPT OF TWO COPIES OF NOTICE OF RIGHT TO CANCEL AND ONE COPY OF THE FEDERAL
TRUTH -IN -LENDING DISCLOSURE STATEMENT, ALL GIVEN BY LENDER IN COMPLIANCE WITH TRUTH -IN -LENDING
SIMPLIFICATION AND REFORM ACT OF 1980 (PUBLIC LAW 96-221).
Each borrower in this transaction has the right to cancel. The excercise of this right by one borrower shall be effective as to all borrowers.
Borrower's Signature Date Borrower's Signature Date
Borrower's Signature Date Borrower's Signature Date
Ellie Mae, Inc. Fonn NRTC (0a/95)
A1z
Housing Preservation Program I Procedural Guidelines 46
Order No.
Escrow No.
Loan No.
WHEN RECORDED MAIL TO:
New Deed of Trust
SPACE ABOVE THIS LINE FOR RECORDER'S USE
DEED OF TRUST WITH ASSIGNMENT OF RENTS
(SHORT FORM)
This DEED OF TRUST, made
whose address is
between
herein called TRUSTOR,
(Numew an, Strut) (C,ty) (Slate)
FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called TRUSTEE, and
herein called BENEFICIARY,
WITNESSETH: That Trustor grants to Trustee in trust, with power of sale, that property in the
County of , State of California, described as:
together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and
conferred upon Beneficiary to collect and apply such rents. issues and profits for the purpose of securing (1) payment of the
sum of $ with interest thereon according to the terms of a promissory note or notes
of even dale herewith made by Trustor, payable to order of Beneficiary, and extensions or renewals thereof, (2) the
performance of each agreement of Trustor incorporated by reference or contained herein and (3) payment of additional sums
and interest thereon which may hereafter be loaned to Trustor, or his successors or assigns, when evidenced by a promissory
note or notes reciting that they are secured by this Deed of Trust.
To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each
and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set
forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the
fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 16, 1964, in the book
(continued on reverse side) „aa„A,
PZ at
Housing Preservation Program I Procedural Guidelines 47
Waiver Request
AHOUSING PRESERVATION LOAN PROGRAM
WAIVER REQUEST
Name
Address
I,
(Applicant's Name)
program guidelines: (Please briefly explain)
1. Maximum Loan
2. Eligible Improvement
3. Other
The reason(s) for this request is the following:
Date
Telephone
hereby request a waiver from the following
NOTE: If the reason for this request is medical, a doctor's certification is required.
(Applicant's Signature)
(Applicant's Signature)
COMMISSION ACTION: APPROVED
DENIED
DATE
Housing Preservation Program I Procedural Guidelines 48
Phase Three: Forms/Documents
• California Preliminary Notice
• Homeowner Satisfaction Statement
• Release of Labor and Materials Form
• Payment Approval Form
• Homeowner Evaluation Form
Housing Preservation Program I Procedural Guidelines 49
California Preliminary Notice
CALIFORNIA PRELIMINARY NOTICE
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Housing Preservation Program I Procedural Guidelines 50
Homeowner Satisfaction Statement
HOUSING PRESERVATION LOAN PROGRAM
HOMEOWNER 'S SATISFACTION STATEMENT
Date:
1. Name of Homeowner(s):
2. Address:
3. Telephone: ( ) ( )
Home
Business
The following improvements have been completed to my satisfaction and the Community & Economic Development (CED)
may proceed to release payment for the work:
♦ Double cylinder locks ♦ Plumbing ♦ Other
♦ Driveway ♦ Roofing
♦ Exterior painting ♦ Sewerhookup
♦ Handicapped ♦ Stucco, plaster
modification ♦ Water Heaters
4. Total cost of improvements
I declare under penalty of perjury that the above statements are true and certify that the West Covina CED shall not be Gable for
damages that may arise out of or in connection with the home improvements described above.
Date/ Date/
Homeowner's signature(s) Contractor's signature
Homeowner's signature(s) Contractor's phone # / License #
FOR FURTHER INFORMATION CALL (626) 939-8417
------------------------------------------------------------------------------------------------------------------------------------------'
FOR OFFICE USE ONLY
Work inspected by:
Deferred loan amount $
Completion photograph taken by:
Have there been any Notices of Intent to Lien received by homeowner?
Assistant City Manager
(If yes, get copies for office and bank)
Date E.D. Project Coordinator Date
Housing Preservation Program I Procedural Guidelines 51
Release of Labor and Materials Form
HOUSING PRESERVATION LOAN PROGRAM
RELEASE OF LABOR AND MATERIALS
Date
To Whom It May Concern:
For valuable consideration, the undersigned,
hereby releases the property at
in the City of West Covina, California, from liability for lien for all materials delivered
and labor performed for said property to this date. This release is conditioned upon the
clearance of the check received in payment for the above -mentioned materials and labor.
Firm Name
Address
City, State & Zip Code
Authorized Representative Contractors Tax I.D. Number or
Social Security Number
CHECKS ARE ISSUED BY APPOINTMENT ONLY, CALL CED AT (626) 939-8417 FOR AN APPOINTMENT
Housing Preservation Program I Procedural Guidelines 52
Date:
Homeowner(s):
F.To1;r=
Payment Approval Form
HOUSING PRESERVATION LOAN PROGRAM
PAYMENT APPROVAL
Loan No.: #
Loan Amount: $
Telephone: Home: ( ) Work:
City Treasurer's Office
City of West Covina
1444 W. Garvey Avenue
West Covina, CA 91790
The following payment in the amount of
been approved for:
Contractor:
Address:
Telephone:
Paulina Morales
Assistant City Manager
Received by:
Date:
Check No.
(Date)
FOR FURTHER INFORMATION CALL THE CED AT (626) 939-8417
Housing Preservation Program I Procedural Guidelines 53
Evaluation Form
HOUSING PRESERVATION LOAN PROGRAM
EVALUATION FORM
Loan #
Dear Homeowner:
Now that you have participated in the Housing Preservation Program, we would
like to ask you for your general impressions of the program and any suggestions
you might have to improve it. We would like to take this opportunity to thank
you for your cooperation.
Please indicate comments in this space:
Homeowner Signature
Housing Preservation Program I Procedural Guidelines 54
Phase Four: Forms/Documents
• Request for Demand
• Beneficiary Statement
• Substitution of Trustee and Full Reconveyance
Housing Preservation Program I Procedural Guidelines 55
Sample Request for Demand
4041 MacArthur Boulevard, #245
- Newport Beach, CA 92660
Phone: (949) 809-0280
PPF ESCROW Fax: (949)809-0281
City of West Covina Date: September 3, 2014
Our Escrow No.: 252241-AR.
Instrument No.: 94-1991294
Instrument No.:96-469371
REQUEST FOR DEMAND
Ladies/Gentlemen:
An escrow has been opened in this office by Albert Garcia Navarro Jr and Carolyn Ruth Navarro
wherein you are listed as the holder of the Note and Deed of Trust covering property legally described and
commonly known as:
202 South Lark Ellen Avenue West Covina, CA 91791
You are requested to fax your payoff demand statement to (949) 809-0281. Payoff should be good
through September 30, 2014. The borrower's authorization is attached. Please refer to our escrow
number listed above when remitting your demand.
Thank you for your prompt attention to this matter.
Sincerely,
PPF Escrow, Inc.
Ann Roueiheb
Escrow Officer
Housing Preservation Program I Procedural Guidelines 56
Beneficiary Statement
COMMUNITY & ECONOMIC
DEVELOPMENT
HOUSING PRESERVATION LOANPROGRAM
BENEFICIARY STATEMENT
Date
Our Loan No
Your Escrow No.
West Covina Community & Economic Development is the legal holder of a note
executed by:
Dated Original Amount Balance Now Owing
Secured by a lien/Deed
Recorded Document No.
of Official Records of the County of Los Angeles, State of California.
Funds due to the CITY OF WEST COVINA $
Upon receipt of funds, the City will send to your company for recording:
Reconveyance Deed
Deed of Trust with Assignment of Rents
Thank you,
Paulina Morales
Assistant City Manager
1444 W. Garvey Avenue • West Covina CA 91790 • Phone (626) 939-8417 • Fax (626) 939-8665
Housing Preservation Program I Procedural Guidelines 57
Substitution of Trustee and Full Reconveyance
ALAM TO:
SUBSTTFUTTON OF TRUSM AND FULL
REFERENCE: DEED OF TRUST
RECORDED,.
INSTRUMENT BOOK PAGE
OFFICIAL RECORDS OF Les Angdes County.
TRUSTOR
TRUSTEE: FirstAmnicu Tidelaauaace Coepaey
BENEFICIARY: The City of West Covina, CA (m its capaaty as Soccessae Apat to the Cay of Wen
Cm Co=mzy Dm3opment COI®1S51O1� and Y bymer }kn m aS the
Redecelap®eat Agency of the City of West Cm -ma)
DATED: AFFECTING LAND SITUATED IN THE COUNTY OF LOS A.INGEI
STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
SLBSTUMON OF TRUSTEE
WHEREAS. THE UNDEJIU" ED THE CITY OF REST COVDU, CA AS SUCCESSOR AGENCY TO THE CITY OF WEST COVINA
WhCMLNDY DEVEIAPAENr COMMISSION WHICH WAS FORhIEet Y KNOWN AS THE REDEVVELD A EN'r AGENCY O THE CITY OF
WEST COVINA (HEREMAITFR'FHE CITY OF WEST COMA, CA'U. BEING THE OUNER AND HDIDER OF THE NOTE OR NOTES OR
OTHER SECURITY ACREEA@71i, SECURED HY DEED OF TRUST HEREINABOVE DESCRIBED.
AND WHEREAS. THE UtiMERSFGKED THE cm OF WEST COVINA, CA HEM THE PRESENT BENEFICIARY UNDER SAID D®
O TRUST AND ACKNOWLEDGES THAT ALL SUMS AND OBLIGATIONS SECURED BY SAID DEED OF TRUST HAVE BEEN FULLY PAID
OR SATISFIED.
AND WHEREAS. THE BENEFICIARY DESMES TO SUBSTITUTE A NEW TRUSTEE UNDER SAID DEED OF TRUST. IN THE PLACE OR
STEAD OF THE CITY OF WEST COVINA, CA
NOW THEREFORE THE UNDERMZED HEREBY SUBSTITUTES THE CITY OF WEST CO{TNA, CA WHOSE ADDRESS IS: It" W
GARV V AVENUE, REST COVINA, CA 91790. AS TRUSIE UNDER SAID DTID OF TRUST UNDER SAID DEED O TRUST. ID THE
PERSON ORPERSONS LEGALLY E NETTLED THERETO.
FULL RECONYEYA_NCE
IRE CITY OF WEST COMA, CA AS SUBSTITUTED TRUSTEE UNDER. THE HERE :ABOVE DESCRIBED OFEU OF TRUST. HAVING
RECEIVED FROM THE HOLDER O THE OBLIGATIONS A WRTRFN REQUEST TO REOD NVEY. HEREBY RFLONVEYS. WTIBDLT
WARRANTY TO THE PERSON OR PERSONS LEGALLY F.NITIED THERETO. THE ESTATE NOW HELD BY SAID TRUSTEE
DATE 10-LUE, 2014 city or West Covina
Chrk"hee I Chong
STAIY OF CALiFOENM City Manager
COL. "OT]AS-LC S-.
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WTITT:SS ma' hood and offiaal uaL
ATTACHMENT NO.2
Housing Loans to be Written Off
Loan #
1
12
Date of Loan
July 18, 2000
September 7, 2000
5,008.76
9,146.00
16
September 27, 2000
9,908.75
17
October 11, 2000
10,050.00
22
October 10, 2000
10,050.00
27
October 14, 2000
9,995.00
31
October 25, 2000
7,350.00
96
Apri120,2001
9,994.81
100
May 7, 2001
9,949.00
209
July 26, 2001
8,876.64
228
September 21, 2001
6,259.00
258
October 21, 2001
7,635.00
266
March 22, 2002
10,050.00
271
March 21, 2002
8,090.00
307
August 20, 2002
8,100.00
318
September 11, 2002
4,195.87
348A
April 4, 2003
10,008.00
412
August 28, 2003
10,050.00
505
August 30, 2004
10,050.00
506
November 2, 2004
8,591.17
609
June 26, 2006
9,550.00
902
October 13, 2008
9,950.00
Total Amount of Loans to Write Off: $192,858.00