Owner Investor Loan Program
The Vacaville City Council wants to encourage the conservation of decent, safe and sanitary housing which is affordable to low and moderate income households. The purpose of this program is to provide a pool of loan funds to encourage owner investors of rental property to improve the lower income neighborhooods of the city and further equal opportunity in housing.
Types of Loans Available
Owner -investors may borrow funds from the City's HUD funded Home Investment Partnership Program (HOME). These funds are available as 3% interest, 15 year deferred payment loans for up to one half the cost of rehabilitation.
The owner's contribution or funds from the City's Neighborhood Conservation Program (NCP) may be used to match the HOME program fundng. NCP funds are available to owner investors as 3% interest, 15 year fully amortized loans. The combined minimum amount that may be borrowed from both loan programs is $1,000 per unit and the maximum is $45,000 per unit.
Eligibility Requirements
A. At least 90% of the units for which rehabilitation is proposed must be occupied by households with incomes less than 65% of the Area Median Income;
B. Property must be located within the designated target areas;
C. Property must be in need of repairs to correct existing or eminent code violations;
D. Owner must demonstrate ability and financial capacity to secure and repay a loan where loans call for repayment; and,
E. If the City is a junior lien holder, the primary loan must not jeopardize equity. (i.e. balloon or negative amortization feature.)
Examples of Eligible Repairs
Repair termite damage.
Repair floors or sub flooring.
Update electrical, plumbing or heating system.
Repair/replace roofing, doors and windows.
Repair foundation, walkways, driveways, fences and walls.
Paint interior and exterior walls.
Restucco walls.
Insulate and weatherize.
Other Services Available
The Department of Housing and Redevelopment (DHR) prepares, advertises and distributes bid packages to a list of qualified contractors. All contractors on the list are invited to bid and owners select the contractors. Owners may select contractors who are not on the list but who meet program requirements. DHR coordinates appointments and conducts site inspections with interested contractors. Owners who act as their own general contractors receive bid packages to use to subcontract jobs.
Owners may make their own repairs; however, loan funds can only be used for material costs and all work must pass City inspection.'
Application Fees
Owner investors who apply for this loan will be charged a $100 application fee. The actual cost of appraisal, credit analysis, and escrow fees will be added to the loan amount.
Application Process
Owner investors may either pick up application forms at the Department of Housing and Redevelopment at 40 Eldridge Avenue, Suite 7, or call 449-5660 to request to have the application forms mailed to them. View Target Area Map
View Income Limits
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