Rental Rehabilitation Loan Program

The Rental Rehabilitation Program is funded in part by the Contra Costa County Affordable Housing Program with Federal Community Development Block Grant (CDBG) monies. In addition, the Rental Rehabilitation Program also receives funds from program income. It is administered through the Housing Authority of the County of Contra Costa‘s Development Department, Rental Rehabilitation Program Division.

Rental Rehabilitation Loan Program Information

Link to: Forms

Eligible Properties: Properties eligible for this program must be mainly residential single-family or multiple units. The property must be primarily occupied by lower income tenants. Vacant properties are also eligible.

Eligible Geographical Locations: Rental Properties to receive repair must be located in all areas of the County of Contra Costa, excluding the cities of Concord, Pittsburg, Richmond and Walnut Creek. North Richmond and Bay Point are covered under this program.

FEES AND COSTS : Applicant is Responsible for cost required to cover for Title Search, Appraisal, Credit Checks, and Lead Inspection and Report. The fee varies relative to the number of units and age of property. This is due upon submittal of application or can be included with the loan. A non-refundable $50 per unit application fee is required at submission of application.

Other related fees such as lead-based paint supervision and clearance testing may be financed out of loan proceeds.

Eligibility for Assistance:

  • The applicant must be the owner of record.
  • The proposed project must be primarily residential.
  • At the time of application at least 50% of the occupied units must be rented to lower income families. A vacant unit may be considered a lower income unit. Landlords will be required to provide proof of Tenant Household Size and Tenant Income.
  • After rehabilitation is complete the property owner is required to make any vacant units available to prospective lower income tenants.
  • At least 70% of the total projects completed during a fiscal year must house low-income tenants.
  • Units rehabilitated with Rental Rehabilitation loan funds may not be occupied by the owner.
  • A minimum average of $5,000 per unit is required (e.g. a two-unit project with $3000 of eligible work in one unit and $7,000 in the second unit would qualify because the average cost per project unit is $5,000).
  • A credit check, title search, appraisal, mortgage, and property insurance verification including fire and liability coverage are required as part of the loan application review.

Eligible Expense Categories: The following categories of expense shall be considered eligible for funding under the program.

  • All work identified as not meeting the Rehabilitation Standards.
  • Costs necessary to make essential repairs or improvements related to the Rehabilitation Standards, but not limited to work that includes plumbing, heating, roofing, flooring, painting, and general permanent improvements with Authority* approval, with emphasis on housing rehabilitation work that is needed and will produce good quality housing and improve overall neighborhood appearance.
  • Repair or replace major housing systems in danger of failure.
  • Improvements necessary to permit the use by handicapped persons.
  • The abatement of lead based paint hazards.
  • Energy-related repairs or improvements.
  • Architectural, engineering or related professional services required in the preparation of rehabilitation plans and drawings or write-ups.
  • Costs for processing and settling the financing for a project, such as lender origination fees, credit reports, fees for title evidence, fees for recordation and filing of legal documents, building permits, attorneys' fees, private appraisal fees and fees for an independent rehabilitation cost estimate.
  • Costs for the owner to provide required information services to tenants.
  • Construction items and rehabilitation costs that are incurred up to six months prior to submitting a rehab program application.

Ineligible Expense Categories: The following categories of expense shall be considered ineligible for funding under the program.

  • Property acquisition.
  • Refinancing of existing debt.
  • New construction.

Matching Funds: The Rental Rehabilitation Loan program requires a minimum of 25% up to 50% “matching Funds” from the property owner. The Housing Authority of the County of Contra Costa may loan from 50% up to 75% of the total cost of a project.

Loan Terms: The Rental Rehabilitation Program provides secured loans for up to 90% of value after rehabilitation based on the Authority's formula or an approved appraisal.

  • Loan shall carry a 1% or 3% simple interest
  • Loan term is 20 years deferred
  • No monthly payments for the term of the loan.
  • Principal and accrued interest is due in full at the earliest of the following events:
    • Sale or transfer of the property, or
    • Twenty years to the date of the note.
  • The maximum loan amount shall not exceed the lesser of the two following values:
    • 50% up to 75% of the eligible rehabilitation cost for private property
    • 75% of the eligible rehabilitation cost for non-profit organizations
  • The following loan maximum schedules:
    • $17,000 per 0 bedroom dwelling unit.
    • $20,000 per 1 bedroom dwelling unit.
    • $22,500 per 2 bedroom dwelling unit.
    • $25,000 per 3 bedrooms or more dwelling unit.
  • Loan limits may be increased in a case to case basis
  • No early pre-payment penalty charge
  • Loans may be assumed if borrower, property, rents and tenants meet all underwriting criteria and requirements.

Affordability Limitations:

  • Rent and Income Limitations shall remain in force and effect for a minimum of 20 years from the effective date of the loan agreement regardless of early loan payoff, transfer or succession in ownership.
  • Owner shall maintain 50% of the total Property dwelling units as Qualifying Units for the term of the loan agreement.
  • Rent for current resident Households in Qualifying Units shown on following exhibit shall not exceed the rent shown thereon for a period of one year from the effective date of the loan agreement.


Unit Size

Monthly Rent

0 bdrm
$ 1,127.00
1 bdrm
2 bdrm
3 bdrm
4 bdrm
5 bdrm
$ 2,061.00

Maximum Rent shall not exceed 30% of 70% of the then current Median Income and are based on occupancy levels. The rents above reflect adjustments for usual tenant paid gas and electric utilities and owner paid water and garbage. For dwelling units where water and garbage service are paid by tenants deduct $60 per month from maximum Rents shown.

  • Households receiving a Section 8 rent subsidy may be charged the allowable lease maximum.
  • No increase in rent shall be charged for more or fewer occupants.
  • Household incomes for all other Qualifying Units shall not exceed the amounts shown on exhibit as updated periodically by Authority for the term of the loan agreement.


Household Size
1 person

Maximum Household Income is the gross income received by all members of the Household.

The Maximum Rent and Household Income limits shown below may be adjusted from time to time by the Authority, following publication of the Oakland PMSA Median Income (AMI), by the U.S. Department of Housing and Urban Development

  • Owner shall obtain an annual "Certification of Tenant Eligibility" (Exhibit D) completed by the Head of each Household counted toward the required number of Qualifying Units.
  • When the income of a resident Qualifying Household exceeds 120% of AMI that household will no longer be considered qualified and the next vacant unit shall be rented to a Qualifying Household.
  • Owner shall give Qualifying Households and Authority written notice six months prior to the end of the Term of the loan agreement advising of all planned rent increases and changes in rental arrangements.

Loan Security Requirements: Loans will be secured by a Deed of Trust recorded on the subject property, a Loan and Regulatory Agreement, and Promissory Note with demand restrictions.

Loan Minimums: Loans must be an aggregate amount of no less than $5,000.00 per unit.


  • Owner and/or Owner's contractor(s) shall provide Project insurance coverage acceptable to Authority and related agencies funding the Loan.
  • Certificates shall name Contra Costa County its officers, agents, employees, and elected officials as additional insured.
    • Workers Compensation Insurance including employer's liability coverage with limits not less than $1,000,000 each accident for rehabilitation construction work.
    • Comprehensive General Liability Insurance with limits not less than $1,000,000 each occurrence combined single limit for bodily injury and property damage including owned, non-owned and hired vehicles for rehabilitation construction work.
    • Fire and Hazard Insurance covering all real property risks of loss for 100% of the replacement value with a deductible acceptable to Authority naming Authority or its assignee as Loss Payee as its interest may appear. Flood Hazard Insurance is required in federally designated hazard areas.

Application Process:

  1. Loan Applicant submits application to the Housing Authority of the County of Contra Costa , Development Department, Rental Rehabilitation Program Division, non-refundable $50 per unit application fee, and all attachments as requested.
  2. Program eligibility and qualifications are determined.
  3. Applicant is required an advance fee $400 up to $750 to cover Title, Appraisal, Credit and Lead Inspection reports, depending on the number of units and age of property.
  4. Application is subject to Title Search, Mortgage Verification Appraisal Evaluation, and Credit Verification.
  5. Complete Loan Underwriting Analysis and Approval
  6. Inspectors conduct initial property inspection, lead inspection or/and risk assessment. Review Reports
  7. Create Deficiency List and work Write-Up Specifications for Property Owner's review and approval.
  8. Submit HUD Appendix A (National Environmental Protection Act) to Contra Costa County , Development Department for review and approval.
  9. Bid Process, Owner's Review, Contractors Selection
  10. Finalize Work Write-Up and Cost Specifications
  11. Determine Project Budget and Loan Amount
  12. Executive Director and Department Head reviews and issue loan approval.
  13. Preliminary loan documents are issued for Authority and Property Owner's review.
  14. Owner signs loan documents.
  15. Executive Director signs loan documents.
  16. Record Loan Documents
  17. Issue preliminary draft of construction agreements to owner and contractor or Owner-Builder Participation Agreement to Property Owner.
  18. Owner signs construction agreement with contractor or Owner-Builder Participation Agreement
  19. Construction Work, Progress and Monitoring Inspections, Disbursements, and Mechanic's Lien Releases
  20. Record Final Inspection and Issue Notice of Completion
  21. Record Notice of Completion
  22. Close and reconcile all project accounts.
  23. Project and File closed.





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