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The Mayor's Office of Housing and Community Development helps homeowners of one to four unit properties to address code deficiencies, health and safety hazards, deferred maintenance, meet housing standards, remediate lead-based paint hazards, and to provide accessibility modifications. Loans are for low-income homeowners who are unable to secure conventional financing.
The CalHOME program is funded by a periodic award from the California Department of Housing and Community Development ("HCD") and is available on a first come first serve basis. To be eligible for a CalHOME loan, a household must meet specific income, asset and property eligibilty as detailed below.
The property must be the homeowner's primary residence and must be one to four units in size. Eligible repairs must be concentrated to the owner-occupied unit and common areas on the property.
The applicant must own and occupy the property for at least one year prior to becoming eligible for a CalHOME loan. The applicant household cannot exceed 91% of the State's Area Median Income (AMI), including income assessed by the household's assets.
Available assets do not include funds held in pension accounts, retirement funds, 401(k) plans, trust funds, or similar assets, which are not available for liquidation without substantial financial penalty to the Borrower. Personal property such as household furnishings, tools of trade or employment, or automobiles are NOT considered available assets.
The Mayor's Office of Housing and Community Development will apply an asset test to all applicants. Assets include all savings and checking accounts, gifts and other sources of money (cash) other than retirement accounts. However, if your retirement account is currently generating income - i.e. you are living off your retirement savings - you must count this money as income on the CalHOME Loan Application. 2% of the assets' cash value or actual income from the asset, whichever is higher, will be added to the total household income. Retirement savings will be excluded from the asset test, but all retirement statements should be included in the application package. The value of necessary items such as furniture and automobiles shall be excluded.
The features of a CalHOME loan are:
- One to four unit properties are eligible. Work is limited to owner-occupied unit and common areas only.
- Loan amount is determined on a case by case basis and cannot exceed 105% of the Loan to Post rehabilitation work value of the property
- CalHOME loans have approximately $1,700 in loan fees
- CalHOME loans carry a 3% interest rate
- All payments are deferred until the term of the loan
- The loan is due in full in 30 years or upon sale, transfer of title, or non-owner occupancy, whichever comes first
- Refinance/Subordination: if the refinance meets the City's subordination requirements, the City loan will subordinate to the new first mortgage