COVER Loan Program

The Code Violation Rehab (COVER) Loan Program helps low to moderate income San Francisco owner-occupied property owners who have limited funds to fix their homes after receiving a code violation from the Department of Building Inspection (DBI).

Check the status of your violation notice from DBI

You can apply for a COVER loan if you:

  • Own and occupy a property with 1-4 units.
    • The property must be free of liens such as for delinquent taxes, judgments and mechanics liens.
  • Have received a Notice of Violation or Notice of Abatement from the Department of Building Inspection.
  • Are at or below 120% of AMI for your household size.

Household Size

120% AMI in 2019

1 Person

$103,450

2 Person

$118,200

3 Person

$133,000

4 Person

$147,800

Download the entire maximum income chart

COVER loan details

  • Interest rate: 1% simple, annual interest.
  • Loan term: No monthly payments for 10 years; Term renewable on a needs basis.
  • Restrictions: Owner occupancy restriction for the life of the loan.

Apply for a COVER loan

  1. Complete and sign the COVER Application

  2. Compile the  application form and all required supporting documentation into one PDF file, and name the file “Property Address-Last Name, First Name” (Example: 123 Sample Street-Smith,John).  Upload your file using the button below.

    Upload your documents with Sharefile
    Sharefile will ask you to create an account

    If you do not have internet access or are unable to submit electronically, you may submit a paper application by US mail to:

    Mayor’s Office of Housing and Community Development
    Attn: COVER Loan Program
    1 South Van Ness Ave., 5th Floor
    San Francisco, CA  94103

    If you have specific questions regarding the application or the required supporting documentation, please work with a HUD-approved housing counseling agency.  For a list of HUD-approved housing counseling agencies please go to www.homeownershipSF.org.

After you apply

  1. MOHCD will review your application and supporting documentation, pull credit report on all owners, and provide a conditional approval if all program guidelines are met.

  2. After you receive a conditional approval from MOHCD, you must start soliciting contractors for bids.
    COVER Bid Template

  3. Work with MOHCD to complete, sign and record loan documents.

    • MOHCD will order a property appraisal.
    • MOHCD will provide a commitment letter with full loan documents for you to review.
    • Sign loan documents at MOHCD's office at 1 S. Van Ness Avenue, 5th Floor, San Francisco.
    • Executed documents must be notarized and recorded before construction work begins.
  4. Construction work begins after you receive a Notice to Proceed from MOHCD.

    • You are responsible for overseeing the construction work.
    • Should there be any changes to the scope of work, your contractor must provide a Change Order Request Form immediately to MOHCD for review and approval.
  5. MOHCD pays the contractor.

    • Your contractor must submit a Payment Request Form to MOHCD to initiate payment.
    • Any unused funds will be used to pay down your loan balance.
  6. Finalizing the COVER Loan Process:

    • You must provide documentation from DBI to verify all Code Violations have been cleared.
    • You will receive a COVER loan closure letter with your loan balance details.
    • After construction work completion a Notice of Completion is prepared, signed by one owner and recorded by MOHCD so that the time limit within which any mechanic's lien can be filed against the property is reduced.

COVER FORMS

If you have any questions, contact Ffely Charun at Ffely.Charun@sfgov.org