CDBG Housing Rehabilitation Program

The Housing Rehabilitation Program is funded by State grant funds awarded to the County of Lassen by the California Department of Housing and Community Development (HCD) Community Development Block Grant (CDBG) Program.

The CDBG Housing Rehabilitation Program is designed to provide assistance to eligible owners for correction of health and safety items, as well as code violations, located within South Lassen County (Census Tract 406).

The Program provides this assistance in the form of loans used to finance the cost of necessary repairs that will provide the owner with a healthy, safe, sanitary and code compliant home, referred to herein as “housing unit”. The Program will be administered by the County of Lassen’s Planning and Building Services Department.


Applicant Eligibility

Owner-Occupant - Applicant must be the owner and occupant of the housing unit to be rehabilitated.  The owner must certify the property is not being offered for sale and is their primary residence .  A photocopy of a recent utility bill will verify proof of occupancy.

Owner-Investor - Applicant must be the owner of the housing unit to be rehabilitated.  The owner must certify the property is not being offered for sale.


Income Eligibility

Owner-Occupant - Household income must be equal to or less than the applicable HCD income limits. Owners are required to provide income documentation. Refer to Income Inclusions and Exclusions in the guidelines for further guidance to the types of incomes to be included or excluded when calculating gross annual income. Refer to Asset Inclusions and Exclusions in the guidelines for further guidance to the types of assets to be included or excluded when calculating gross annual income.

Owner-occupants housing and debt ratios are considered, and a credit report is required, since the funding provided may create an additional monthly financial obligation. If an owner-occupant has a mortgage, it is verified all payments are current and no late payments have been received in the past twelve months.

Owner-Investor - There are no restrictions on the income of the owner-investor unless the owner-investor is a income eligible and is interested in qualifying for a Deferred Payment Loan (DPL).

Owner-investor housing and debt ratios are considered, and a credit report is required, since the funding provided may create an additional monthly financial obligation. If an owner-investor has a mortgage on the housing unit to be rehabilitated it is verified all payments are current and no late payments have been received in the past twelve months.

Tenant - If a rental is currently occupied, the tenant's household income must be equal to, or less than, the applicable HCD income guidelines.  Tenant will be asked to cooperate by providing income documentation.  Refer to Income Inclusions and Exclusions in the Guidelines or further guidance to the types of incomes to be included or excluded when calculating gross annual income.  Refer to Asset Inclusions and Exclusions in the Guidelines for further guidance to the types of assets to be included or excluded when calculating gross annual income.

CLICK HERE to see the income limits for the Program.


Property Eligibility

No housing unit will be eligible if it is currently occupied by an over-income household or does not meet the eligibility standards outlined in the Guidelines. To prevent owners from evicting ineligible tenants before applying to the Program, the owner must certify no tenant has been forced to move without cause during the previous six months.

Housing units must be located within South Lassen County (Census Tract 406).

The property must contain a legal residential structure intended for continued residential occupancy. Housing units eligible for rehabilitation include: single-family homes, duplexes, and manufactured homes.

All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. The priority is to eliminate health and safety hazards with the elimination of any code deficiencies. Section 8 Housing Quality Standards may be required on rentals.


Eligible Construction Costs

Health and Safety Issues - Eligible costs include, but are not limited to, energy-related improvements, lead-based paint hazard evaluation and reduction activities, improvements for handicapped accessibility, repair or replacement of major housing systems.  A driveway may be considered part of rehabilitation if it is determined to be a health and safety issue.

Code and Regulation Compliance - Eligible costs include, but are not limited to, additional work required to rehabilitate and modernize a housing unit, and bring it into compliance with current building codes and regulations.  Painting and weatherization are included.

Demolition - Eligible costs include, but are not limited to, the tear down and disposal of a dilapidated housing unit when it is a part of reconstruction.  If a garage or carport is detached, it may not be rehabilitated but may be demolished, if it is determined to be a health and safety issue.

Upgrades - Eligible costs include additional bedrooms and bathrooms if the need can be demonstrated per HUD’s overcrowding guidelines listed in the Guidelines.  The Program will not fund additions to a home for a den or family room, or for any luxury items.

General Property Improvements - Eligible costs include, but are not limited to, installation of a woodstove, refrigerator, and/or dishwasher. All improvements must be physically attached to the housing unit and permanent in nature. Non-code property improvements will be limited to 15 percent of the loan amount. Any cash contribution by the owner is considered a general property improvement and included in this percentage. 

Luxury items are not permitted and may include but are not limited to: hardwood floors, hot tubs, whirlpool baths, steam showers, fireplaces, washing machines, and dryers.  Items such as refrigerators, cook stoves and dishwashers that are not built-in may be replaced due only to incipient failure or documented medical condition of the owner, and must be of moderate quality.

Rehabilitation Standards - All repair work related to health and safety conditions will meet Local Building Code standards. The priority will be the elimination of health and safety hazards and code compliance.


Financing Limits

Eligible owners may qualify for the full cost of rehabilitation/reconstruction work needed to comply with State and local codes and ordinances. The maximum loan amount for rehabilitation/reconstruction will not exceed $100,000.

If a project is above the maximum amount of assistance the owner may finance the remaining amount of the project costs with personal financing and/or other loan or grant funds.


Loan Terms and Rates

Owner-Occupant - If an income eligible owner-occupant is determined to be eligible they may receive a DPL. The rate and term of the loan is based on the owner-occupant's annual income. If an income eligible owner-occupant is determined to be eligible they may receive a grant.

Owner-Investor - If an owner-investor is determined to be eligible they may receive an amortized loan. If an income eligible owner-investor is determined to be eligible they may receive a DPL. The rate and term of the loan will be based on the owner-investor's annual income. If an income eligible owner-investor is determined to be eligible they may receive a grant.

 

Grants

The maximum grant amount is $10,000 per household and is only offered as funds are available, on an individual needs basis, and for the following activities:

1.  The repair and installation of sewer or water lines/systems where existing lines/systems have failed.

2.  To senior citizens over 62 years old and/or disabled persons for accessibility improvements. The necessity for such improvements must be supported by appropriate written notification from a physician, referring social service agency, or a similar outside authority familiar with the living situation. Receipt of Social Security Disability or Supplemental Security Income can also be used as verification of disability.

Grants may also be available for any activities necessary for the removal of environmental hazards. These hazards may include but are not limited to lead-based paint mitigation, asbestos, mold, and chemical contamination. Total grant amount for this activity will be determined on an individual needs basis and is not subject to the maximum grant amount above.


Fair Housing

This program will be implemented in ways consistent with Lassen County's commitment to Fair Housing. No person shall be excluded from participation in, denied the benefit of, or be subjected to discrimination under any program or activity funded in whole or in part with funds on the basis of his or her religious affiliation, age, race, color, ancestry, national origin, sex, marital status, familial status (children), physical or mental disability, sexual orientation, or other arbitrary cause.


How Do I Apply?

Call or visit the Planning and Building Services Department at 707 Nevada Street, Suite 1 in Susanville. Regular office hours are from 8:00am to 5:00pm, Monday through Friday.

Please Contact:
Phone: (530) 251-8308
Fax: (530) 257-6599
Email: housing@co.lassen.ca.us

Download:

Housing Rehabilitation Program Guidelines
Housing Rehabilitation Application