San José Department of Housing - Programs - Home Repairs

The Department of Housing lends funds to eligible lower-income homeowners of single-family and duplexes to make emergency repairs to their properties under the Housing 0% Interest Loan Program.

Program Purpose
To offer technical and financial assistance to achieve decent, safe, and sanitary living conditions for low-income, owner-occupied households. The Zero Percent Loan program is a simplified, no-fee alternative to a “full loan” such as the City’s HPP loan. The primary purpose of this loan is to fund single-family rehabilitation where all health and safety needs can be met with a combination of a grant and a Zero Percent Loan, or with the Zero Percent Loan only.

Eligible Applicants
Owner-occupants whose gross annual income does not exceed the Santa Clara County lower-income level, adjusted for family size. Please refer to the Eligibility Criteria for eligible income levels.

Eligible Properties
Single-family or duplex residential properties located within the City of San José.

Limits
The maximum Zero % Loan amount available is $15,000.

Terms

Zero % Loans are for the cost of repairs or improvements, not to exceed $15,000.
Property must be owned by applicant for a minimum of one year prior to application.
All repairs and improvements will be prioritized by program staff based on the specific health and safety needs of the property.
Subject property must be the only real property owned by applicant.
Approval of the loan is subject to asset limitations in effect at the time of application.
Applicant must sign a promissory note and deed of trust.
All health and safety issues must be corrected first. Certain exterior improvements to property may also be required by the housing inspector.
As a funding requirement, property may be tested for lead-based paint contamination.

Security for the City's Loan
The loan will be recorded as a lien against the real property and will be due upon maturity of loan or sale or re-finance of property.

Eligible Repairs

Roof replacement
Electrical system repair or replacement
Plumbing repair or replacement
Disabled accessibility
Weatherization and energy efficiency upgrades
Furnace and water heater replacement
Seismic retrofit
Bathroom and/or kitchen rehabilitation
Exterior paint and other improvements as determined by Housing staff

Ineligible Improvements
Certain improvements are not basic requirements for a safe and healthy living environment. These items are not eligible for City loans or grants. Examples of such improvements include: pools, spas or hot tubs, outdoor cooking facilities, storage sheds, patio covers, furniture, or draperies.

Application Process
A Housing Rehabilitation Inspector will enter your home and inspect your property to evaluate immediate health and safety related needs. If the Inspector determines that $15,000 of funding will correct all health and safety needs, a grant for up to this amount will be offered. If you are not eligible for a grant, the Inspector will provide you with a Zero Percent Loan application.

If you are eligible for a $15,000 grant, but the improvements required exceed this amount, and you choose to have the necessary repairs completed through the program, you will be required to apply for a Zero % deferred loan to cover the costs of repairs that exceed the grant amount. A zero interest loan application will be provided to you. As a condition of the City’s grant, all critical health and safety related needs must be addressed.

For further information and application forms, contact the Rehabilitation Division at:
City of San José
Department of Housing - Rehabilitation Programs
200 East Santa Clara Street
San José, CA 95113

Phone: 408.975.4440
Fax: 408.988.3183
michelle.harrison@sanjoseca.gov