Residential Rehabilitation Loan Program

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This program is currently not available through the City of Santa Maria; however, the City has allocated funding to Community Action Partnership of San Luis Obispo, Inc. (CAPSLO) who offers a minor home repair program.

For more information on CAPSLO's program, click here.



Before Rehabilitation

After Rehabilitation


This is a sample of a rehabilitation done by Habitat for Humanity in order to improve the living conditions for this household. See eligibility requirements below for a detailed list of eligible types of improvements and borrower qualification criteria.

Eligible Improvements
Loan Description & Borrower Qualifications
Nine Easy Steps to Home Improvement
Eligibility Questionnaire

Eligible Improvements

  1. The repair or replacement of heating, plumbing and electrical systems, structural repairs, and built-in appliances.
  2. The roofing, siding, stuccoing, and painting of the exterior.
  3. The flooring, tiling, plastering, and painting of the interior.
  4. The addition or alteration of habitable rooms, bathrooms, kitchens, stairs, halls, closets, and storage areas.
  5. The installation of ramps, rails, or other devices that promote accessibility and independent living.

The purpose of the Deferred Loan Program is to preserve the City's existing housing stock and improve the living conditions of the City's elderly and handicapped residents. The program first requires the correction of any building code violations. Homeowners may then undertake other needed repairs and improvements that will make their homes more habitable and handicap-accessible. Activities not directly related to improving the property, or that do not meet the intent of the program, are ineligible.

Loan Description & Borrower Qualifications

The City of Santa Maria Special Projects Division provides deferred home improvement loans to low- and moderate-income residents. Monies have been allocated through the Federal Community Development Block Grant Program to make deferred loans that require no payments until the subject property is no longer owned and occupied by the borrower. An eligible homeowner can borrow up to $40,000.00.


  1. Borrower must own the property and must be currently residing on the property and continue to reside on the property until the loan is repaid.
  2. The property must be located within the City limits.
  3. The property must be a permanent structure and must be occupied year-round as a permanent residence.
  4. There must be adequate equity in the property to ensure eventual repayment of the loan.
  5. Borrower must be of legal age and fall into one of the following categories: be low- to moderate- income; or reside within a predominantly low-income area.

Nine Easy Steps to Home Improvement

CONTACT SPECIAL PROJECTS DIVISION STAFF - Contact Special Projects Division Staff at (805) 925-0951 ext. 2118 for program information and application.

COST ESTIMATE - Once you get the application have a cost estimate prepared by three licensed contractors.

CODE VIOLATIONS - Any code violations cited during the inspection must be corrected, regardless of loan approval or denial.

LOAN APPLICATION - Once the approximate loan amount is determined, your loan application will be evaluated by the City, and a title report will be requested.

LOAN APPROVAL/DENIAL - Even though you have met the program's basic requirements, your application must still be approved, based upon the equity in your home.

WORK DESCRIPTION - Once you have received notice of loan approval, a meeting will be scheduled to review the cost estimate for the proposed work. If necessary, adjustments can be made to the work proposal.

LOAN TERMS - You will make no monthly payments on a deferred loan, as long as you live in and own your home. When title is transferred, the loan must be paid back with no interest.

LOAN DOCUMENTS - The Special Projects Division will request loan documents. When they arrive, a meeting will be scheduled for you to sign them.

LOAN FUNDS - Once the loan documents are signed, work may commence. The Special Projects Division will make progress payments directly to your contractor as each phase of the work is completed.

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