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City of Redondo Beach
Department of Recreation and Community Services
320 Knob Hill, Room 1
Redondo Beach, CA 90277

CITY OF REDONDO BEACH
DEFERRED PAYMENT LOAN PROGRAM

PROGRAM DESCRIPTION

This program provides four percent (4%), simple interest, deferred-payment home improvement loans to lower-income Redondo Beach homeowners. The City's budget for this program in Fiscal Year 2001-2002 is $100,000, which will fund four or five loans. Loans may range from $5,000 up to $25,000. If there are extenuating circumstances, staff will approve loans above $25,000. There are no monthly payments. The loan becomes due and payable upon the sale of the property or transfer of title. The loan cannot be subordinated if refinancing occurs.

Eligible improvements and repairs are those necessary to make the dwelling unit conform to accepted housing code standards, to correct health and safety hazards, to halt structural deterioration, and to provide energy conservation measures. Other improvements may include exterior work to help preserve or protect the structure (painting, roofing, siding and color coating) and interior work to make a structure more livable (painting, plastering, new flooring and modernizing kitchens and bathrooms). New Federal guidelines dictate that each home must be assessed for the presence of lead. If your home tests positive for lead, your loan will have to include those additional costs.

ELIGIBILITY REQUIREMENTS

Homeowners must meet the following requirements:

• Own and reside in a house within the City of Redondo Beach.
• Have a total gross household income that does not exceed the maximum lower-income levels shown below:

GENERAL INFORMATION

The program operates as follows:

• The homeowner submits a completed application and copies of household income, assets, and property information as requested. Staff reviews and makes a determination of eligibility. A preliminary title report is obtained from a title company. (Note: The cost of the title report and County recording fees are paid from the homeowner's loan amount.)
• Program staff inspects the property, discusses the repairs with the homeowner, and prepares a work write-up.
• The homeowner reviews and approves the work write-up, which is sent to contractors to bid on the work.
• Program staff reviews the bids with the homeowner. The homeowner selects the contractor.
• The homeowner signs loan documents and the title report is issued.
• A pre-construction conference is held between the homeowner, contractor and program staff. Construction contract documents are signed.
• Construction begins. Progress payments are made to the contractor as work is completed and inspected by program staff.
• When construction has been completed, the homeowner signs the Notice of Completion.

This program is administered by the City of Redondo Beach Community Development Block Grant Program staff and funded through the City of Redondo Beach Redevelopment Agency's Low and Moderate Income Housing Fund.

Funds for this program are limited and are made available to Redondo Beach homeowners on a first come, first served basis. Please call (310) 318-0641 for further information.