No, there is no credit check, nor does credit play a role in our decision to fund an applicant. This program is designed for County residents who would otherwise be unable to secure a loan from a traditional bank.
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The main priority of NPP is to eliminate health and safety deficiencies in the home. This typically includes, but is not limited to roof repair/replacement, water heater replacement, HVAC repair, and improvements to the plumbing and electrical systems.
The program provides applicants with loans up to $70,000 and grants up to $15,000. The type of funding that you are offered depends on factors such as your current household income, housing expenses, and equity in your home. Funding for the program comes directly from the U.S. Department of Housing and Urban Development’s Community Development Block Grant (CDBG), and Contra Costa County acts as a steward. Once approved, the money is actually paid directly to your chosen contractor at set intervals as work progresses and is verified as complete. Grants do not need to be paid back, while loans become due in either 15 or 30 years. At the time that the loan matures, some borrowers with deferred loans may be eligible for an extension or have their loan converted to amortizing, depending on their income.
NPP uses the “sealed bid” procurement method for major projects. Homeowners work with a home inspector to draft a scope-of-work and eligible contractors send in sealed bids based on their estimates for the work. The lowest, most responsible bidder is awarded the project.
Homeowners work with a home inspector to put together a scope-of-work that includes eligible work. However, deviations often occur to facilitate the winning proposal. If you were not awarded enough funding to accommodate all of the work you have requested, the home inspector will ultimately determine which work must take precedence, based on detriment to health and safety.
Yes, both of the loans offered through the program are secured through an encumbrance (lien) on your property’s title (similar to a second mortgage).
Contractors must have a B-class contractor’s license through the State Contractor’s License Board, meet insurance requirement (General Liability, Auto, and Worker’s Comp), and abide by program rules.
A “household” refers to all persons occupying a housing unit as their primary place of residence. Occupants may be a family, two or more families living together, a tenant, or any other group of related or unrelated persons who share living arrangements.
An “Owner-occupant” is a resident of a property who holds the title to that property. In order to qualify for the program, the property must be the primary place of residence for all owners.
In order to qualify for the program, any bankruptcy must be finalized/discharged from record. The court appointed trustee must no longer be involved in the decision-making process of homeowner transactions.