HomeMy WebLinkAbout2024-02-13; City Council; ; Housing Element Program 3.5 Objective (a): Update the City’s Minor Home Repair ProgramCA Review ___AF___
Meeting Date: Feb. 13, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Nicole Piano-Jones, Senior Program Manager
nicole.pianojones@carlsbadca.gov, 442-339-2194
Subject: Housing Element Program 3.5 Objective (a): Update the City’s Minor
Home Repair Program
Districts: All
Recommended Action
Adopt a resolution approving updates to the city’s Minor Home Repair Program to implement
Housing Element Program 3.5, Objective (a), and authorize the use of up to $100,000 of
Housing Trust Funds for the program annually.
Executive Summary
The Housing Element in the city’s General Plan includes policies and programs the city is
responsible for implementing to maintain a certified housing element and remain compliant
with state housing laws. The programs promote housing options in Carlsbad to ensure existing
and future housing needs of all residents are met.
One objective in the Housing Element (Program 3.5 objective (a)) calls for the Minor Home
Repair Program to be updated to expand the eligible costs and increase the maximum loan
amounts. This program provides forgivable loans to lower-income owners of single-family
homes.
To fulfill this requirement, staff have prepared these updates to the city’s Minor Home Repair
Program and the Housing Commission approved a resolution (Exhibit 2) on Jan. 11, 2024,
recommending that the City Council approve them so that they can take effect.
Explanation & Analysis
Housing Element Background
Every city in California is required to have a current Housing Element in its General Plan. The
Housing Element is a plan that provides an analysis of a community’s housing needs for all
income levels, along with strategies to respond to and provide for those housing needs. In
addition to policies, programs and objectives that encourage housing development, the
Housing Element also includes programs that promote safe and healthy living environments.
After a two-year process, the 2021-2029 Carlsbad Housing Element was approved by the City
Council on April 6, 2021, which was certified by the State Department of Housing & Community
Feb. 13, 2024 Item #7 Page 1 of 33
Development in July 2021. The Housing Element includes policies, programs and objectives
showing how the city intends to accommodate its share of housing for the state’s current
housing cycle, which is from 2021 to 2029. There are 39 Housing Element programs that are
further divided into nearly 159 program objectives. These objectives identify ongoing actions
the city intends to implement throughout the housing period and specific actions the city must
accomplish.
Program 3.5 objective (a) of the Housing Element calls for the Minor Home Repair Program to
be updated to expand eligible costs and increase maximum loan amounts. To fulfill this
requirement, the City Council is being asked to approve an update the Minor Home Repair
Program.
Existing Minor Home Repair Program
The City Council approved the appropriation of federal funds and local housing funds to
implement both a Down Payment and Closing Cost Loan Program and a Minor Home Repair
Program in 2008. (Resolution No. 2008-121) The Minor Home Repair Program provides loans to
lower-income owners of single-family dwelling units with the following goals:
1) Maintain safe homes and attractive neighborhoods
2) Preserve and improve the quality of the housing stock
3) Assist low-income seniors to age in-place or the disabled to remain in their home
4) Enhance the security of the home through the awarding of loans
The current Minor Home Repair Program consists of the following key components:
Maximum award $5,000
Term Forgiven after five years of owner occupancy
Interest 0%
Eligible applicant Low-income homeowners at or below 80% of area median income
Eligible properties Single-family homes and mobile homes in which the land and
mobile home are owned by the applicant
Eligible repairs • Remedy unsafe living conditions such as:
o Unsafe wiring and other electrical repairs
o Broken windows
o Termite damage
• Repairs to address accessibility
• Exterior repairs, such as removal of hazardous trees or driveway
repairs
Since the program was approved in 2008, 13 homeowners have been assisted with a total of
$57,521.80 in forgivable loans. As of the writing of this report, 11 loans have been forgiven and
two loans are to be forgiven in 2025. Only two loans have been issued in the last five years.
Based on the limited loan amount of the program, these loans assisted with minor items such
as balcony and fence improvements and trimming of overgrown shrubbery.
Feb. 13, 2024 Item #7 Page 2 of 33
Program evaluation
Analysis of the current program design shows the maximum dollar amount and the list of
eligible activities limit the viability of the program. The terms of the program have not been
revisited in over 15 years. Normally inflation can increase construction costs by about 3%-7%
annually. The cost for home improvement projects have experienced significant increases since
the program’s inception. For example, construction cost inflation may have increased by
approximately 30-50% from 2013 to 2023, depending on regional and economic factors. The
U.S. Bureau of Labor Statistics reports construction costs increases, for both labor and
materials, going up by double digit percentages each year since 2019. The cost of some
materials, such as plywood, steel, and hardwood lumber, have dramatically increased,
increasing overall construction costs.
Staff researched similar programs among local jurisdictions in the region. (Exhibit 3) While there
are variations to each program, there are a number of similarities:
• Single-family properties are assisted with repayable loans only
• Interest varies, but is usually applied for loans
• Programs are generally funded with federal funds
• Loan amounts vary between $20,000-$50,000
• Mobile homes are generally included, but may be a separate program
Proposed changes
Based upon program performance, market conditions and trends, staff recommend the
following changes to the city’s program
Increasing the loan limits
Based on the increase in labor and materials costs since 2008, the current loan limit of
$5,000 is not sufficient to cover most improvements. City staff recommend increasing
the loan amount to $25,000 for single-family homes with the caveat that the loan be
repayable. The loan amount for mobile home properties in which the land is also owned
is recommended to increase to $10,000. Mobile homes usually require less investment
than single-family houses because they are generally smaller and have fewer systems
and components to maintain.
Changing the loan terms
The loans currently bear no interest and are forgivable after five years of continued
occupancy. This would not be a sustainable practice if the city is going to increase the
loan amount. Additionally, Carlsbad real estate values have significantly increased since
2008 and will continue to rise, based on trends for coastal communities. Given
increasing home values, it is reasonable to ask for repayment upon the sale or transfer
of the home, or due to non-owner occupancy or other default, and would not be a
burden to the homeowner. The loan terms for single-family homes would be below
market rate of 3% simple interest. Loans to the owners of mobile home properties are
recommended to remain as 0% interest loans, and due and payable upon the sale,
transfer, non-owner occupancy or other default. This recommendation is made because
mobile homes generally do not appreciate in value as much as single-family homes do.
Feb. 13, 2024 Item #7 Page 3 of 33
Expanding eligible costs
Program 1.10 (a) in the Housing Element calls for the addition of energy efficiency
improvements to the list of eligible activities under the loan program. Such
improvements can decrease ongoing utility costs, which reduces housing costs for the
low-income homeowner.
Prioritization
The Housing Commission voted to add language to the program guidelines that would
allow staff to prioritize applications from low-income seniors, veterans, and/or those
with disabilities in the event that multiple applications were competing for limited
funding.
Funding
Staff recommend a maximum annual allocation of $100,000 from the City’s Housing
Trust Fund toward this program. If the amended program is approved to operate as a
loan, the proceeds of the loans can be made available to new applicants, so the program
could operate as a revolving loan program.
Exhibit 4 details these proposed changes to the program manual.
Fiscal Analysis
If these changes are approved, there will be a temporary impact to the Housing Trust Fund with
initial allocations of $100,000 annually. This will be offset in the future with loan repayments to
the trust fund. Over time, the program may be able to operate as a revolving loan program,
reinvesting loan repayments to new applicants. The Housing Trust Fund had an approximate
Fund Balance of $10.1 million as of June 30, 2023.
Next Steps
With the City Council’s approval, Housing & Homeless Services staff will implement the revised
program. Staff will also include appropriations for the Minor Home Program in the proposed
budget for the Housing Trust Fund for City Council’s consideration.
Environmental Evaluation
In accordance with Public Resources Code section 21065, this action does not constitute a
project within the meaning of the California Environmental Quality Act in that it has no
potential to cause either a direct physical change in the environment, or a reasonably
foreseeable indirect physical change in the environment, and therefore does not require
environmental review.
Exhibits
1.City Council resolution
2.Housing Commission resolution
3.Program research - Housing rehabilitation programs in San Diego County
4.Minor Home Repair Program Manual showing proposed changes
Feb. 13, 2024 Item #7 Page 4 of 33
RESOLUTION NO. 2024-030
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING UPDATES TO THE CITY'S MINOR HOME REPAIR
PROGRAM TO IMPLEMENT HOUSING ELEMENT PROGRAM 3.5, OBJECTIVE
(a), AND AUTHORIZE THE USE OF UP TO $100,000 OF HOUSING TRUST
FUNDS FOR THE PROGRAM ANNUALLY
WHEREAS, the City Council of the City of Carlsbad, California approved the 2021-2029 Housing
Element on April 6, 2021, and the state Department of Housing and Community Development found it
substantially compliant with state Housing Element law on July 13, 2021; and
WHEREAS, the approved Housing Element provides an assessment of both current and future
housing needs and constraints in meeting these needs and provides a strategy that establishes housing
goals, policies, and programs; and
WHEREAS, Housing Element program 3.S(a) requires that the city update the Minor Home
Repair Program to expand eligible costs and increase maximum loan amounts; and
WHEREAS, the Minor Home Repair Program was approved by the City Council in 2008, and
offers forgivable loans not to exceed $5,000 to income-eligible households for eligible repairs; and
WHEREAS, the Housing Commission on Jan. 11, 2024, held a noticed public meeting to consider
updates to the Minor Home Repair Program; and
WHEREAS, senior households, veteran households, and/or disabled households often have
limited ability to pay for home repairs and are at greater risk of displacement from their homes; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.The City Council approves the program updates to the Minor Home Repair Program
provided in Attachment A.
3.That $100,000 from the Housing Trust Fund is authorized for the Minor Home Repair
Program annually.
Exhibit 1
Feb. 13, 2024 Item #7 Page 5 of 33
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 13th day of February, 2024, by the following vote, to wit:
AYES:
NAVS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH sY'.ACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
Feb. 13, 2024 Item #7 Page 6 of 33
Attachment A
City of Carlsbad Minor Home Repair Program 1 of 10
MINOR HOME REPAIR
PROGRAM MANUAL
Effective: November 1, 2008
Updated: February 13, 2024
City of Carlsbad
Housing & Homeless Services Department 1200 Carlsbad Village Drive Carlsbad, CA 92008 Phone: 442-339-2810 Email: housing@carlsbadca.gov
Feb. 13, 2024 Item #7 Page 7 of 33
Attachment A
City of Carlsbad Minor Home Repair Program 2 of 10
INTENT
The Minor Home Repair Program provides loans to homeowners of single-family
dwellings units and mobile homes in which the land and mobile home are owned
by the eligible owner with the following goals:
1)Maintain safe homes and attractive neighborhoods
2)Preserve and improve the quality of the housing stock
3)Assist seniors to age in-place or the disabled to remain in their home
4)Enhance the security of the home through the awarding of loans
To be eligible, homes must be owner-occupied single-family units, owner-
occupied mobile home units in which the land is also owned by eligible owner,
located within the city limits of the City of Carlsbad, and receive written approval
of a proposed scope of work to be completed with the loan proceeds.
ASSISTANCE PROVIDED
The maximum loan amount that a household may borrow under the Minor Home
Repair Program are as follows: .
Single Family Homes Mobile Home (Land Owned)
$25,000 $10,000
Due and payable upon sale, transfer, or
default
Due and payable upon sale, transfer,
or default
3% Simple Interest, due and payable
upon sale, transfer, or default
0%
All Minor Home Repair Program loans must be repaid in full when the home is
sold, transferred, or is found in default of the terms of the loan.
For single-family Minor Home Repair loans, a three (3) percent simple interest will
be applied. The accrued interest is due and payable when the home is sold,
transferred, or found in default of the terms of the loan.
For mobile home Minor Home Repair loans, a zero percent interest will be
applied, and no interest will accrue. Manufactured homes are eligible so long as
the homeowner also maintains ownership of the land underneath their home
prior to application and during the term of the loan, if the land is rented than the
homeowner is not eligible.
Feb. 13, 2024 Item #7 Page 8 of 33
Attachment A
City of Carlsbad Minor Home Repair Program 4 of 10
all persons living in the household. Applicants must indicate any change of
income status and provide documentation (i.e. divorce, death, etc.)
Proof of ownership: A copy of the property deed must be attached.
Photographs of potential improvements: Homeowners must provide
photographs of the potential improvements as record of the needed
repairs. If the homeowner is unable to provide photographs, city staff
would need permission to enter the home and document the potential
improvements as necessary.
ELIGIBLE COSTS
The loan funds may be used to make minor repairs to remedy unsafe living
conditions, including but not limited to leaky plumbing, lack of smoke detectors,
and replacing broken light switches. For a complete list of eligible repairs please
see Attachment 2.
On a case-by-case basis, loan funds may be used to improve the appearance of
the exterior of the residence. Mobile homes are only eligible for this program if
the homeowner owns the land that the mobile home resides on. For additional
examples of eligible repairs please see Attachment 2.
The applicant must submit a scope of work and three bids to complete the work
prepared by a licensed contractor and said scope of work must be approved by
the City of Carlsbad. Loans will not be granted for work completed prior to
obtaining written approval of the scope of work from the City of Carlsbad. All
repairs and/or rehabilitation must be completed in accordance with City Building
Codes and other related codes. The applicant must pay for the eligible
improvements and then request reimbursement from the City of Carlsbad. A
licensed contractor must certify that the work has been completed before
payment or reimbursement shall be provided.
APPLICATION PROCESS
The City of Carlsbad will complete an initial screening of all potential applicants to
confirm:
1. The applicant is improving or repairing an eligible home within the City of
Carlsbad.
2. The applicant resides within the home as a primary residence.
3. Initial information indicates that the applicant qualifies for the assistance.
Feb. 13, 2024 Item #7 Page 10 of 33
Attachment A
City of Carlsbad Minor Home Repair Program 5 of 10
4. Initial information, including photographs, indicates that the proposed
improvements/repairs are eligible expenses.
5. Verify priority status, if applicable.
After initial eligibility has been determined, the City of Carlsbad will provide the
applicant with written approval of the proposed scope of work and the necessary
packet of information to proceed with the repairs and/or obtain the loan
proceeds. A credit report and title report may be required as part of the
verification documentation.
Any household that participates in the program will need to sign a loan
agreement and note evidencing the loan. A deed of trust securing the loan will
also be recorded against title to the participant’s home.
Please complete the Application, photographs, and return all documents to:
City of Carlsbad
Housing & Homeless Services
1200 Carlsbad Village Drive
Carlsbad, CA 92008
For questions, please call: 442-339-2810 or email housing@carlsbadca.gov.
Se habla español.
APPLICATION
NAME:
PROPERTY ADDRESS:
TELEPHONE NUMBER:
HOUSEHOLD MEMBERS: List yourself and ALL persons living/staying in your
home. Attach a separate page if needed. Please list the correct legal name as it
appears on the Social Security Card.
Name Relationship
Feb. 13, 2024 Item #7 Page 11 of 33
Attachment A
City of Carlsbad Minor Home Repair Program 6 of 10
*Note: All information collected is kept confidential and is used for statistical purposes only.
INCOME INFORMATION *all income information is subject to verification
Name: Age:
$ $ $ $ $ $
Employment
Income
SSI Pension Income AFDC Income Child
Support/Alimony
Other
Income
Total Individual Annual Income: $
Name: Age:
$ $ $ $ $ $
Employment
Income
SSI Pension Income AFDC Income Child
Support/Alimony
Other
Income
Total Individual Annual Income: $
Name: Age:
$ $ $ $ $ $
Employment
Income
SSI Pension Income AFDC Income Child
Support/Alimony
Other
Income
Total Individual Annual Income: $
Name: Age:
$ $ $ $ $ $
Employment
Income
SSI Pension Income AFDC Income Child
Support/Alimony
Other
Income
Total Individual Annual Income: $
Name: Age:
Employment
Income
SSI Pension Income AFDC Income Child
Support/Alimony
Other
Income
Total Individual Annual Income: $
*Note: All information collected is kept confidential and is used for statistical purposes only.
TOTAL HOUSEHOLD INCOME: $
APPLICATION (2 of 2)
I hereby submit completed application and photographs of the areas to be
repaired to the City of Carlsbad’s Minor Home Repair Program. I further certify
that all information provided is true and correct, and that the income I stated
Feb. 13, 2024 Item #7 Page 12 of 33
Attachment A
City of Carlsbad Minor Home Repair Program 7 of 10
above represents the total household income for the past year preceding this
application including the income of all persons in the home.
I hereby grant permission to the City of Carlsbad’s Minor Home Repair Program
staff to use the information provided to effectively administer the program.
The income information provided above is subject to verification by the City of
Carlsbad. I agree to submit copies of federal income tax returns, and I am aware
that all of the employers may be contacted to verify income received as a result of
employment.
All household members 18 years and older must sign this document.
I, the undersigned, do hereby swear under penalty of perjury that all
information contained on the application is true and correct to the best of my
knowledge and belief.
Signature of Applicant:
Signature of Applicant:
Signature of Applicant:
Signature of Applicant:
Date:
Feb. 13, 2024 Item #7 Page 13 of 33
Attachment A
City of Carlsbad Minor Home Repair Program 8 of 10
Attachment 1
United States Housing and Urban Development Department
2023 Household Income Limits
Effective: May 15, 2023
Household Size Low Income
1 $77,200
2 $88,200
3 $99,250
4 $110,250
5 $119,100
6 $127,900
7 $136,750
8 $145,550
Feb. 13, 2024 Item #7 Page 14 of 33
Attachment A
City of Carlsbad Minor Home Repair Program 9 of 10
Attachment 2
Minor Home Repair Program
List of eligible repairs include, but are not limited to:
Plumbing:
- Clear clogged drains
- Fix leaking plumbing and faucets
- Replace defective toilets and sinks
- Replace defective water heaters
Carpentry:
- Install window locks, door locks
- Rebuild broken steps
- Remove architectural barriers for access
- Replace broken windows, window panes, door hinges
- Restoring porches and stairs
- Repair termite damage or dry rot repair
- Weatherization of doors or windows
Electrical:
- Install smoke detectors
- Replace broken light switches, outlets, fixtures
- Repair unsafe wiring
Special aids for disabled/seniors:
- Install wheelchair ramps, grab bars, levers, railing
- Install devices for the hearing and sight impaired
- Install accessible showers, bathtub, toilets
Exterior Residence:
- Driveway repair
- Eliminating trip hazards
- Fence improvements
- Overgrown shrubbery
- Removal of debris
- Removal of hazardous trees
Other:
- Repairs to improve the energy efficiency
Feb. 13, 2024 Item #7 Page 15 of 33
Attachment A
City of Carlsbad Minor Home Repair Program 10 of 10
List of ineligible repairs:
- Repairs to appliances
- Cosmetic repairs
- Tree pruning, unless a safety hazard exists
- Repairs to garages or accessory structures
- Carpet cleaning
- Any item that is “Lead-Based Paint” related or would otherwise
require a risk assessment
- Replacement of kitchen cabinets, countertops
→ Any unmentioned repairs will be considered on a case-by-case basis.
For more information, please contact the City of Carlsbad Housing & Homeless Services Department
at housing@carlsbadca.gov or 442-339-2810. Se Habla Espańol.
Feb. 13, 2024 Item #7 Page 16 of 33
RESOLUTION NO. 2024-001
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD,
CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL CONSIDER
UPDATES TO THE CITY'S MINOR HOME REPAIR PROGRAM
Exhibit 2
WHEREAS, the City Council of the City of Carlsbad, California approved the 2021-2029 Housing
Element on April 6, 2021, and the state Department of Housing and Community Development found it
substantially compliant with state Housing Element law on July 13, 2021; and
WHEREAS, the approved Housing Element provides an assessment of both current and future
housing needs and constraints in meeting these needs and provides a strategy that establishes housing
goals, policies and programs; and
WHEREAS, Housing Element Program 3.S{a) requires that city update the Minor Home Repair
Program to expand eligible costs and increase maximum loan amounts; and
WHEREAS, the Minor Home Repair Program was approved by the City Council in 2008, and
offers forgivable loans not to exceed $5,000 to income-eligible households for eligible repairs; and
WHEREAS, the Housing Commission on Jan. 11, 2024, held a noticed public meeting to consider
updates to the Minor Home Repair Program; and
NOW, THEREFORE, BE IT RESOLVED by the Housing Commission of the City of Carlsbad,
California, as follows:
1.That the above recitations are true and correct.
2.The Housing Commission recommends that the City Council consider the program
updates to the Minor Home Repair Program provided in Attachment A.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Housing Commission of the City
of Carlsbad on the 11th day of January, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Chang, Horton, Ydigoras.
Collins.
None.
Berger.
T�LINS, Chair
frrr MANDY MILLS, Director Feb. 13, 2024 Item #7 Page 17 of 33
Attachment A
Summary of Recommendations to Amend the City's Minor Home Repair Program
Increase loan amount for single-family residences to $25,000
o Change loan term from forgivable to due upon sale, transfer, or default
o Apply a 3% simple interest rate
■ Interest is due and payable upon sale, transfer, or default
Increase loan amount for mobile home residences in which land is also owned to $10,000
o Change loan term from forgivable to due and payable upon sale, transfer, or default
o Zero percent interest
Expand eligible costs to include energy efficiencies
Prioritize seniors, disabled and veterans.
Feb. 13, 2024 Item #7 Page 18 of 33
Exhibit 3
Housing Rehabilitation Programs
San Diego County
Single-Family Homeowners
Location Interest
Rates
Max Loan Requirements
City of Chula Vista
0%-3%
interest
dependent
upon income
$25,000 - Households at 80% AMI.
- No prior grant or loan from City.
- Priority for qualified low-income census
tract areas.
- Applicants must have owned and lived in
property for at least one year and no other
real property ownership.
- Must have adequate equity (max of 85%
LTV prior to funding).
- Max. liquid assets may not exceed $25,000.
City of El Cajon
0% interest $50,000 - Households at 80% AMI.
- 0% interest (unless in default).
- Loan is due and payable if the property is
sold, rented, refinanced, transferred, or is
no longer owner-occupied.
- Max. property value restrictions apply.
- Homeowner must have owned the
property for at least one year.
City of Encinitas
3% simple
interest
forgivable
over-time
$50,000 - Households at 80% AMI.
- Max. property value restrictions apply.
- Accrued interest is forgiven over time
period based on the loan amount:
o Less than $15,000 = five years.
o $15,000-$40,000 = ten years.
o more than $40,000 = fifteen years.
- Loan is due if the property is leased, sold,
or transferred to a new owner, or no longer
occupied by the borrower.
- One loan will be permitted per each
property.
City of Oceanside
3% simple
interest
80% of
appraised
value
- Household at 80% AMI.
- Loan is capped at 80% of appraised value.
- Terms between 10-30yrs depending on
loan amount and household income.
- Staff recommends to a loan committee
Feb. 13, 2024 Item #7 Page 19 of 33
2
Dec. 2023
Location Interest
Rates
Max Loan Requirements
based on a loan analysis of
income/debt/and disposable income to
approving committee.
San Diego County 3% simple
interest
$25,000 - Household at 80% AMI.
- Loan must be repaid when the property
changes hands or the recipient moves.
- Available in the unincorporated area of San
Diego County, or the cities of Del Mar,
Imperial Beach, Lemon Grove, Poway, or
Solana Beach.
Mobile Homeowners
Location Interest
Rates
Max
Loan/Grant
Requirements
City of Chula Vista
0% interest $10,000 - Households at 50% AMI.
- 0% deferred 5-year forgivable loan.
- Mobile home located in Mobile home
Zone.
City of El Cajon
0% interest $20,000 - Households at 80% AMI
- 0% interest (unless in default).
- Only in specific Mobile home parks.
- Repayment deferred until sale, rental,
refinance, or transfer.
City of Encinitas
0% interest $10,000 loan/
$5,000 grant
- Households at 80% AMI
- Loan forgiven after five years.
- Max. property value restriction apply.
City of Oceanside
3% $10,000 - Household income at 80%
AMI=matching grant.
- Household income at 50% AMI= non-
matching grant.
- Terms between 10-30 years,
depending on loan amount and
household income.
- Staff recommends loan based on loan
analysis of income/debt/and
disposable income to approving
committee.
Feb. 13, 2024 Item #7 Page 20 of 33
3
Dec. 2023
Location Interest
Rates
Max
Loan/Grant
Requirements
San Diego County Non-
repayable
$20,000 - Household at 80% AMI.
- Available in the unincorporated area
of San Diego County & the cities of Del
Mar, Imperial Beach, Lemon Grove,
Poway, or Solana Beach.
Cities with No Rehabilitation Programs
- City of San Diego
- Coronado
- Escondido
- National City
- San Marcos
- Santee
- Vista
Feb. 13, 2024 Item #7 Page 21 of 33
City of Carlsbad- Minor Home Repair Program 1 of 12
MINOR HOME REPAIR
PROGRAM MANUAL
Effective: November 1, 2008 Updated: February 13, 2024
City of Carlsbad Housing & Homeless Services Department 1200 Carlsbad Village Drive Carlsbad, CA 92008 Phone: 442760-339434-28102 Email: housing@carlsbadca.gov
Formatted: Left: 1", Right: 1", Top: 1", Bottom: 1",Header distance from edge: 0.5", Footer distance from edge: 0.5"
Feb. 13, 2024 Item #7 Page 22 of 33
City of Carlsbad- Minor Home Repair Program 2 of 12
INTENT
The Minor Home Repair Program provides loans to homeowners of single- family
dwellings units and mobile homes in which the land and mobile home are owned
by the eligible owner with the following goals:
1) Maintain safe homes and attractive neighborhoods
2) Preserve and improve the quality of the housing stock
3) Assist seniors to age in-place or the disabled to remain in their home
4) Enhance the security of the home through the awarding of loans/loans
To be eligible, homes must be owner-occupied single-family units, owner-
occupied mobile home units in which the land is also owned by eligible owner,
and located within the city limits of the City of Carlsbad, and receive written
approval of a proposed scope of work to be completed with the loan proceeds.
ASSISTANCE PROVIDED
The maximum loan amount that a household may borrow under the Minor Home
Repair Program are as follows: is $5,000 maximum per unit.
Single Family Homes Mobile Home (Land Owned)
$25,000 $10,000
Due and payable upon sale, transfer, or
default
Due and payable upon sale, transfer,
or default
3% Simple Interest, due and payable
upon sale, transfer, or default
0%
All Minor Home Repair Program loans must be repaid in full when the home is
sold, transferred, or is found in default of the terms of the loan.
For single-family Minor Home Repair loans, a three (3) percent simple interest will
be applied. The accrued interest is due and payable when the home is sold,
transferred, or found in default of the terms of the loan. are zero percent interest
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Feb. 13, 2024 Item #7 Page 23 of 33
City of Carlsbad- Minor Home Repair Program 3 of 12
deferred payment loans. Each loan will have a five year term. The principal
amount of the loans will be forgiven by 20% per year for each year that the home
remains under the original ownership. If the home is sold (or there is a transfer of
ownership) prior to the expiration of the 5 year term, the portion of the loan
which has not yet been forgiven must be repaid at the time the home is sold or
there is a change in ownership.
For mobile home Minor Home Repair loans, a zero percent interest will be
applied, and no interest will accrue. Manufactured homes are eligible so long as
the homeowner also maintains ownership of the land underneath their home
prior to application and during the term of the loan, if the land is rented than the
homeowner is not eligible.
These loans are available to low -income households who own and occupy their
home as their primary residence. Homes may not be rented during the 5 year
term of the Minor Home Repair Program loan and would be a default of loan
terms.
Manufactured homes are eligible so long as the homeowner also maintains
ownership of the land underneath their home, if the land is rented than the
homeowner is not eligible. There shall be only one loan of funds allowed per
property in any 5 year period.
Carlsbad homeowners are eligible to receive one loan grant for the duration of
the program.
PROGRAM ADMINISTRATION
The City of Carlsbad administers the Minor Home Repair Program and may set
forth additional policies and procedures as determined to be appropriate to
maintain the integrity of the program and provide for its intended
implementation.
ELIGIBILITY REQUIREMENTS
In order to participate, you must be the owner-occupant of a single- family
dwelling unit or the owner-occupant of a mobile home units in which the land is
also owned by eligible owner, and the property must be located in the City of
Carlsbad. Additionally, applicants may not exceed the low- income household
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Feb. 13, 2024 Item #7 Page 24 of 33
City of Carlsbad- Minor Home Repair Program 4 of 12
income limits established by the U.S Housing and Urban Development
Department (See Attachment 1).
In the event there are multiple applications and limited funding available, the
following applicants will receive priority processing; senior households, veteran
households, and/or disabled households.
→ Please note: APPLICATIONS WILL NOT BE PROCESSED WITHOUT
VERIFICATION OF ADDRESS, INCOME, OWNERSHIP and PHOTOGRAPHS OF
POTENTIAL IMPROVEMENTS.
Proof of Address: California Driver’s License, California I.D., or utility bill.
Proof of Income: Verification papers are required for all forms of household
income. For example, city staff may ask for: IRS tax forms submitted in
prior years, award letters for social security, supplemental security income
(SSI), aid to families with dependent children (AFDC), pension,
unemployment insurance, disability or workmen’s compensation, child
support or alimony, and any other income. The total income (gross income
before deductions and withholding taxes) must include income received by
all persons living in the household. Applicants must indicate any change of
income status and provide documentation (i.e. divorce, death, etc.)
Proof of ownership: A copy of the property deed must be attached.
Photographs of potential improvements: Homeowners must provide
photographs of the potential improvements as record of the needed
repairs. If the homeowner is unable to provide photographs, city staff
would need permission to enter the home and document the potential
improvements as necessary.
ELIGIBLE COSTS
The loan funds may be used to make minor repairs to remedy unsafe living
conditions, including but not limited to leaky plumbing, lack of smoke detectors,
and replacing broken light switches. For a complete list of eligible repairs please
see Attachment 2.
On a case-by-case basis, loan funds may be used to improve the appearance of
the exterior of the residence. Mobile homes are only eligible for this program if
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Feb. 13, 2024 Item #7 Page 25 of 33
City of Carlsbad- Minor Home Repair Program 5 of 12
the homeowner owns the land that the mobile home resides on. For additional
examples of eligible repairs please see Attachment 2.
The applicant must submit a scope of work and three bids to complete the work
prepared by a licensed contractor and said scope of work must be approved by
the City of Carlsbad. Loans will not be granted for work completed prior to
obtaining written approval of the scope of work from Tthe City of Carlsbad. All
repairs and/or rehabilitation must be completed in accordance with City Building
Codes and other related codes. The applicant must pay for the eligible
improvements and then request reimbursement from the City of Carlsbad. A
licensed contractor must certify that the work has been completed before
payment or reimbursement shall be provided.
APPLICATION PROCESS
The City of Carlsbad will complete an initial screening of all potential applicants to
confirm:
1. The applicant is improving or repairing an eligible home within the City of
Carlsbad.
2. The applicant resides within the home as a primary residence.
3. Initial information indicates that the applicant qualifies for the assistance.
4. Initial information, including photographs, indicates that the proposed
improvements/repairs are eligible expenses.
4.5. Verify priority status, if applicable.
After initial eligibility has been determined, the City of Carlsbad will provide the
applicant with written approval of the proposed scope of work and the necessary
packet of information to proceed with the repairs and/or obtain the loan
proceeds. A credit report and title report may be required as part of the
verification documentation.
Any household that participates in the program will need to sign a loan
agreement and note evidencing the loan. A deed of trust securing the loan will
also be recorded against title to the participant’s home.
Please complete the Application, photographs, and return all documents to:
City oOf Carlsbad Housing & Homeless Services
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Feb. 13, 2024 Item #7 Page 26 of 33
City of Carlsbad- Minor Home Repair Program 6 of 12
1200 Carlsbad Village Drive Carlsbad, CA 92008
For questions, please call: 442760-339434-28102 or email
housing@carlsbadca.gov.
Se habla español.
APPLICATION
NAME:
PROPERTY ADDRESS:
TELEPHONE NUMBER:
HOUSEHOLD MEMBERS: List yourself and ALL persons living/staying in your
home. Attach a separate page if needed. Please list the correct legal name as it
appears on the Social Security Card.
*Note: All information collected is kept confidential and is used for statistical purposes only.
INCOME INFORMATION *all income information is subject to verification
Name: Age:
$ $ $ $ $ $
Name Relationship
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Feb. 13, 2024 Item #7 Page 27 of 33
City of Carlsbad- Minor Home Repair Program 7 of 12
Employment
Income
SSI Pension Income AFDC Income Child
Support/Alimony
Other
Income
Total Individual Annual Income: $
Name: Age:
$ $ $ $ $ $
Employment
Income
SSI Pension Income AFDC Income Child
Support/Alimony
Other
Income
Total Individual Annual Income: $
Name: Age:
$ $ $ $ $ $
Employment Income SSI Pension Income AFDC Income Child Support/Alimony Other Income
Total Individual Annual Income: $
Name: Age:
$ $ $ $ $ $
Employment Income SSI Pension Income AFDC Income Child Support/Alimony Other Income
Total Individual Annual Income: $
Name: Age:
Employment
Income
SSI Pension Income AFDC Income Child
Support/Alimony
Other
Income Total Individual Annual Income: $
*Note: All information collected is kept confidential and is used for statistical purposes only.
TOTAL HOUSEHOLD INCOME: $
APPLICATION (2 of 2)
I hereby submit completed application and photographs of the areas to be
repaired to the City of Carlsbad’s Minor Home Repair Program. I further certify
that all information provided is true and correct, and that the income I stated
above represents the total household income for the past year preceding this
application including the income of all persons in the home.
I hereby grant permission to the City of Carlsbad’s Minor Home Repair Program
staff to use the information provided to effectively administer the program.
The income information provided above is subject to verification by the City of
Carlsbad. I agree to submit copies of federal income tax returns, and I am aware
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Feb. 13, 2024 Item #7 Page 28 of 33
City of Carlsbad- Minor Home Repair Program 8 of 12
that all of the employers may be contacted to verify income received as a result of
employment.
All household members 18 years and older must sign this document.
I, the undersigned, do hereby swear under penalty of perjury that all
information contained on the application is true and correct to the best of my
knowledge and belief.
Signature of Applicant:
Signature of Applicant:
Signature of Applicant:
Signature of Applicant:
Date:
Feb. 13, 2024 Item #7 Page 29 of 33
City of Carlsbad- Minor Home Repair Program 9 of 12
Attachment 1
United States Housing and Urban Development Department 2023 Household Income Limits
Effective: May 15, 2023 Household Size Low Income
1 $77,200
2 $88,200
3 $99,250
4 $110,250
5 $119,100
6 $127,900
7 $136,750
8 $145,550
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Feb. 13, 2024 Item #7 Page 30 of 33
City of Carlsbad- Minor Home Repair Program 10 of 12
Attachment 2
Minor Home Repair Program
List of eligible repairs include, but are not limited to:
Plumbing:
- Clear clogged drains
- Fix leaking plumbing and faucets
- Replace defective toilets and sinks
- Replace defective water heaters
Carpentry:
- Install window locks, door locks
- Rebuild broken steps - Remove architectural barriers for access
- Replace broken windows, window panes, door hinges - Restoring porches and stairs - Repair termite damage or dry rot repair
- Weatherization of doors or windows
Electrical:
- Install smoke detectors
- Replace broken light switches, outlets, fixtures
- Repair unsafe wiring
Special aids for disabled/seniors:
- Install wheelchair ramps, grab bars, levers, railing
- Install devices for the hearing and sight impaired
- Install accessible showers, bathtub, toilets
Exterior Residence:
- Driveway repair
- Eliminating trip hazards
- Fence improvements
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Feb. 13, 2024 Item #7 Page 31 of 33
City of Carlsbad- Minor Home Repair Program 11 of 12
- Overgrown shrubbery - Removal of debris - Removal of hazardous trees Other:
- Repairs to improve the energy efficiency
List of ineligible repairs:
- Repairs to appliances
- Cosmetic repairs
- Tree pruning, unless a safety hazard exists
- Repairs to garages or accessory structures
- Carpet cleaning
- Any item that is “Lead-Based Paint” related or would otherwise
require a risk assessment
- Replacement of kitchen cabinets, countertops
→ Any unmentioned repairs will be considered on a case-by-case basis.
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Feb. 13, 2024 Item #7 Page 32 of 33
City of Carlsbad- Minor Home Repair Program 12 of 12
For more information, please contactall the City of Carlsbad Housing & Homeless Services Services
Department at housing@carlsbadca.gov or for more information at 442760-339434-28102. Se Habla
Espańol.
Feb. 13, 2024 Item #7 Page 33 of 33
HOUSING ELEMENT PROGRAM:
UPDATE MINOR HOME REPAIR
PROGRAM
Mandy Mills, Housing and Homeless Services Director
Erin Peak, Program Manager
Housing & Homeless Services
Feb. 13, 2024
1
TONIGHT’S PRESENTATION
•Background
–Housing Element Program
–Minor Home Repair Program
•Proposed Changes
•Recommended Actions
2
ITEM 7. Minor Home Repair
ITEM 7. Minor Home Repair
3
•“Minor Home Repair Program will be updated
to expand eligible costs and increase
maximum loan amounts”
•The quantified objective was to assist up to
five low‐income households per year with
home improvement loans
Program 3.5:
Rehabilitation of
Owner‐Occupied Housing
Minor Home Repair Program
4
ITEM 7. Minor Home Repair
Provides $5,000 forgivable loans, to eligible low‐income homeowners
Single‐family homes and mobile homes where land is owned
Eligible repairs cover basic plumbing, carpentry, electrical, and accessibility
13 homeowners assisted
Construction Costs
Eligible Activities
Pr
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Max. Loan Amount
6
ITEM 7. Minor Home Repair
Program Area Single Family Homes Mobile Home (Land Owned)
Loan Amount $25,000 $10,000
Loan Terms Due and payable upon sale,
transfer, or default
Due and payable upon sale, transfer,
or default
Interest Rate 3% Simple Interest 0%
Eligible Uses Add Energy Efficiency Add Energy Efficiency
Applicant Priority Senior, Veteran and/or Disabled Senior, Veteran and/or Disabled
Recommendations to Amend the City’s Minor Home Repair Program
CHANGES TO RECOMMENDED ACTIONS
•To include an applicant priority for seniors, veterans and/or disabled residents, the
City Attorney recommends adding a new recital to the resolution:
•WHEREAS, senior households, veteran households, and/or disabled households
often have limited ability to pay for home repairs and are at greater risk of
displacement from their homes; and
•And adding the following amendment “to the extent permitted by law” to the
eligibility requirement of the minor home repair manual on Attachment A, page 3;
•In the event there are multiple applications and limited funding available, the
following applicants will receive priority processing; senior households, veteran
households, and/or disabled households, to the extent permitted by law.
7
ITEM 7. Minor Home Repair
RECOMMENDED ACTIONS
•Adopt an amended resolution approving updates to the city’s Minor Home Repair Program with an amendment to include the new recital;
•And adding the following amendment “to the extent permitted by law” to the eligibility requirement of the minor home repair manual on page 3 of Attachment A;
•And authorize the use of up to $100,000 of Housing Trust Funds for the program annually.
8
ITEM 7. Minor Home Repair