Housing Rehabilitation Loan Programs
The City of Menlo Park currently
offers two housing rehabilitation loan programs:
The City of Menlo Park Single-Family
Housing Rehabilitation Loan Program offers a 3% interest, 30-year
amortized loan and a 3% interest, 5-year deferred payment loan
for homeowners in the City of Menlo Park whose household incomes
do not exceed program income limits.
These loans are for the purpose of owner-occupied home rehabilitation
and repair. In addition to assisting with originating a loan,
City staff provides assistance with preparing work specifications,
conducting the bid process to obtain a contractor, contract review
and technical evaluation of the completed rehabilitation work.
To qualify, the applicant's total loans-to-value
(LTV) ratios may not exceed 80% of the post-rehabilitation appraised
value of the home. In addition, the applicant's gross annual household
income may not exceed the program's
income limits.
To apply, fill out the Housing
Rehabilitation Program Preliminary Loan Application.
Please complete and return your application
to:
City of Menlo Park
Housing and Redevelopment Division
Attn: George Starmer
701 Laurel Street
Menlo Park, CA 94025-3483
FAX: 650-327-1759
Participants of the Single-Family Housing
Rehabilitation Loan Program whose properties are located in the
Belle Haven neighborhood are also eligible to receive a one-timelandscaping
grant to improve their front yards. Housing program staff will
assist program participants with the details of the landscape
grant program.
For more information about the Single-Family
Housing Rehabilitation Loan Program or to request an application,
please contact George Starmer at 650 330-6739. or gcstarmer@menlopark.org
The Rental Rehabilitation Loan Program
provides low-interest loans at 100% financing for the repair and
rehabilitation of single-family and multi-family Menlo Park rental
properties that serve residents whose household incomes do not
exceed program income limits.
Property eligibility is based on the
number of tenants with qualifying incomes.
In order for a property to qualify for
the Rental Rehabilitation Loan Program, a specified percent of
the property's tenant households must have qualifying incomes;
that is, incomes less than the program
incomes limits, for the property/building type, as follows:
- Single-family rentals must be 100%
low-income occupied by low income qualified tenants.
- One out of two units in a duplex must
be occupied by low income qualified tenants.
- Two out of three units in a triplex
must be occupied by low-income tenants.
- Multi-family buildings with more than
three units must be at least 70% occupied by low-income tenants.
Note that preference for funding will
be given to those projects that are 100% occupied by income qualifying
tenants
The terms of the rental rehabilitation
loan are as follows:
- The loan
has a 6% interest rate for 30 years.
- If the property is sold or the title
is transferred in the first five years, or if the borrower fails
to comply with the terms and conditions of the loan. five years
interest will be due and payable at the time of noncompliance.
Additionally, total loans on the property
before rehabilitation may not exceed an 80% loans-to-value (LTV)
ratio using the post-rehab appraised value of the property. The
property must also produce a positive cash flow. An appraisal
fee is required for multi-family units.
For more information about the Rental
Rehabilitation Loan Program or to request an application, please
contact George Starmer at (650) 330-6739 or E-mail to
gcstarmer@menlopark.org.
Please note that for all loans, financing is based on fund
availability.
