Habitat for Humanity of Northern Santa Barbara County  
  Northern Santa Barbara County HFH
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Housing Rehabilitation Loan Program (HRLP)
A partnership between Habitat for Humanity of Northern Santa Barbara County and the Cities of Santa Maria and Guadalupe.

The HRLP is designed to keep housing affordable for lower income homeowners and to maintain and upgrade the existing housing stock within the Cities of Santa Maria and Guadalupe. It is a voluntary Building and Zoning Code enforcement program to enable correction of deficient code items relating to health and safety such as: Plumbing, Electrical, Foundation, Roofing, Heating, Insulation, Windows, Painting, Termite damage/dry-rot, and other related miscellaneous items.

Since the U.S. Department of Housing and Urban Development (HUD) provides funding for each Cities HRLP, they mandate that the City identify and remove all lead based paint hazards at any residence receiving an HRLP loan. This lead paint removal work will typically be paid with a grant and will not usually add to the amount of the loan. To Qualify:

  1. Property must be occupied by the Home owner.
  2. Property must be within the City limits. Maximum Loan Amount is $40,000 per unit in the City of Santa Maria. No limit in Guadalupe.
  3. Program interest rates are currently zero.
  4. There are no required loan payments.  Loans are payable when a deed change occurs.
  5. Family income can not exceed the (classified as) LOW income shown on the chart below.

 Habitat for Humanity-NSBC and the appropriate City staff provides the following services at NO CHARGE to the property owner:

  • Financial Counseling
  • Assistance In Application Preparation
  • Escrow Services
  • Property Inspection/Lead Based Paint Inspection
  • Technical Assistance In Preparing Work Specifications & Cost Estimates; Obtaining Plans & Permits (if needed)
  • Bidding Process: Volunteer labor is used whenever it is possible. All electrical, roofing and plumbing work is performed by licensed contractors that are Licensed & Insured; Bidding Is Competitive.
  • Construction Monitoring: Habitat for Humanity-NSBC is the liaison between the homeowner and volunteers and contractors.
  • Accounting Services: Processing/Disbursing of Funds
  • The Application Process :

Just like any lending institution we need to verify title to the property, mortgages, income, assets, liabilities, credit history and fire insurance. We do this at the time of the interview and also give you information about terms of the loan, which will be deferred or amortized, to fit your circumstances. Once we have reviewed all of your information, an evaluation will be made of your financial eligibility.

When we determine that you are eligible, you will receive a preliminary letter of approval. The next step will be for a Housing Rehabilitation team member(s) to perform an inspection of the property and determine health and safety code deficiencies and/or zoning violations. Additionally, all lead paint hazards, deferred maintenance items, handicapped accessibility issues, and seriously overcrowded conditions (if applicable) will be addressed. A list will be prepared of the work that needs to be done and will be sent to you for your approval to proceed. A Work Write-Up will then be developed of all the work that is necessary and eligible under the Program. If plans need to be drafted and/or hearings for modifications, it will take more time in this phase of the process. Once the Work Write-Up is ready you will be provided with a cost estimate and we will proceed, with your approval. Any tasks that Habitat for Humanity volunteers can not perform will then be put out to bid, either to several licensed and insured contractors or to be negotiated with one state licensed contractor. With the help of the HFH Construction Coordinator you will select a contractor(s) from those that submit bids. Once we know the cost of the project, and who will be doing the work, we can then present the project to our Loan Committee for approval.

Loan settlement is the last step before the construction begins. At this time you will be working with City Staff.  This step requires the signing of a Promissory Note and the Deed of Trust, which is recorded against your property. You will receive a Truth-in-Lending Statement stating the terms of the loan.

Finally, there is a construction conference with the HFH Construction Coordinator.  You will now sign the Construction Contract and Notice to Proceed are signed. Work will begin within 10 days after this takes place.

For additional information on HRLP, contact Richard Brown at Habitat for Humanity-NSBC or email Richard@nsbhabitat.com

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