Emergency Home Improvement Program

What is considered an emergency improvement?

• Repairs or replacement of air conditioning units (during summer months)
• Repair or replace heating systems (during winter months)
• Repair or replace roof leaks (during rainy conditions)
• Repairs to plumbing leaks
• Other health and safety related repairs

Emergency Grant (EG) Component

Due to very limited funding, various procedures and terms outlined in the HIP Guidelines, under the EG component, have since been modified.

Funding Terms

• For very low and low-income households whose income does not exceed: 50% of AMI (for very low-income households); 80% of AMI (for low-income households)
• Maximum grant amount of $7,500 for very low-income households; $5,000 for low-income households
• Grant agreement that proportionally forgives the obligation to repay over five (5) years (For example, with a grant of $5,000, $1,000 is forgiven annually)
• Deed of trust recorded as security for the performance of the obligations under the grant agreement.
• No repayment is required during the term of the grant agreement unless the property is sold or transferred to a household that exceeds 80% of the AMI.
• Assumable if property is sold or transferred to a household whose income equals or is less than 80% of the AMI.

Basic Qualifications

To qualify for the Program, both participant and the property must satisfy eligibility criteria, including but not limited to the following:

• Title - Participants must have title to the property for which the request for funding of improvements is being made.
• Owner-Occupancy - Participants, including all persons holding title to property, must occupy the property as their sole and principal residence, and not own any other improved real property.
• Income Eligibility - The gross household income of all applicants, co-applicants, persons holding title to property, and all occupants 18 years of age or older, will be included to determine eligibility, as outlined on the HIP Income Eligibility Limits form, pursuant to the applicable percentages of the AMI for Riverside County.
• Frequency of Assistance - There is no waiting period under the EG; however total EG assistance may not exceed twice the maximum emergency grant amount, provided Total Assistance is not exceeded.
• Priorities - Funding is based on a first-come-first-served basis, limited to emergency items only, and until Program funds are expended.
• Eligible Improvements - Covers emergency conditions, as determined by the Administrator, including but not limited to the following:
  • repair or replacement of roof leaks (during rainy conditions)
  • repair of plumbing leaks
  • repair or replacement of inoperable air conditioner (summer months) or heating system (winter months) *

* When all public utility funding programs have been exhausted and/or denied.

City of Palm Desert - Housing Division
Home Improvement Program (HIP) - Emergency Grant Application

Checklist for Application

Please provide copies of the following documents, which will be made a part of the application hereto and must be received in order to review your request:

• Eligibility Documentation: (for ALL applicants and household occupants): Submit copies of documentation that demonstrates each applicant and household occupant is a U.S. Citizen or "qualified alien" as defined in 8 USC § 1641.
• Income Documentation: (for ALL applicants and household occupants that are 18 years of age and older): Submit copies of all applicable income documentation. 1) 2 months of current payroll stubs; 2) Social Security (SSA-1099 Benefit Statement, or direct deposit verification via bank statements); 3) Pension (last 2 check stubs, monthly or end-of-year statements); 4) Unemployment or Disability (check stub, award statement and/or end-of-year statement); 5) Rental income (provide a letter, clarifying the following: rental amount, term of rental, household occupant's name; also provide a copy of the lease agreement); 6) Alimony/Child Support (Divorce Decree, Separation Agreement, or verified by deposits shown on bank account statements)
• If Self Employed: you will need to provide 3 years business tax returns, 6 most recent business bank statements and YTD Profit and Loss Statements.
• Income Tax Returns (Federal): Last 2 years IRS returns; include ALL pages (i.e. schedules, attachments, W-2s, 1098s, and 1099s). If you are exempt from filing Federal Income Tax Returns, you must certify by signing a Declaration of Taxpayer Non-Filing of Federal Income Tax Return Status form (our office will provide you with this form, if applicable).
• Bank Account Statements: Last 2 months bank statements (all pages) for ALL financial institutions.
• Mortgage payment coupon(s) or mortgage statement: (for ALL loans against the property)
• Homeowners Insurance Policy: Copy of Declaration Page of homeowner's insurance policy.
• Property Tax Bill: Should you not have a copy available, you may obtain the property tax information via the Riverside County website, Office of the Treasurer - Tax Collector (www.co.riverside.ca.us); if you do not have access to a computer, our office will obtain this information for you upon request.
• Utility Bill: Last 2 months utility bill in the name of the applicant or co-applicant.
• Grant Deed: Copy of Grant Deed on the property for which you are seeking HIP assistance for.
• Pictures of Conditions: Pictures of the subject repair items/areas (i.e., roof or plumbing damaged area, etc.) that you are seeking HIP assistance for.
• Insurance Claim Letter: In the case of emergency conditions (i.e., roof, plumbing, or other items typically covered through a homeowner's insurance policy), provide a letter from your homeowner's insurance company showing acceptance or denial of your insurance claim.
• Available Funds: A letter confirming whether or not you have available monies/resources to pay the difference between the HIP Grant amount and construction contract in advance of HIP monies (necessary, in the event the bid/contract exceeds the HIP Grant amount); specify the maximum amount you are able to pay & the source from which these monies will come from (documentation of the source must be provided).

Mobile Home Applicants

In addition to the above, the following information must be submitted:

• Registration Card: Copy of Registration Card (available through CA Dept. of Housing & Community Development)
• Letter of Clarification: Clarify the following: 1) Is manufactured home permanently affixed to ground?; 2) Do you own the land that manufactured home is placed on? (If not, what is monthly rent for land?); 3) Do you owe any money on mobile home? (If yes, provide copy of note agreement or clarify payment amount and terms?)

NOTE: Other documents may be required depending upon negative credit history or other circumstances.

State of California Fair Lending Notice

STATE OF CALIFORNIA FAIR LENDING NOTICE: Under the Housing Financial Discrimination Act of 1977, it is unlawful to discriminate in the provision of or in the availability of financial assistance because of the consideration of:

1. Trends, characteristics or conditions in the neighborhood or geographic area surrounding a housing accommodation, unless the financial institution can demonstrate in the particular case that such consideration is required to avoid an unsafe and unsound practice; or
2. Race, color, religion, sex, marital status, national origin or ancestry.

It is illegal to consider the racial, ethnic, religious, or national origin composition of a neighborhood or geographic area surrounding a housing accommodation or whether or not such composition is undergoing change, or is expected to undergo change, in appraising a housing accommodation or in determining whether or not, or under what terms or conditions, to provide financial assistance.

These provisions govern financial assistance for the purpose of the purchase, construction, rehabilitation or refinancing of one-to-four unit family residences occupied by the owner for the purpose of the home improvement of any one-to-four unit family residence.

If you have any questions about your right, or if you wish to file a complaint, contact the management of this financial institution or:

If you file a complaint, the law requires that you receive a decision within thirty days.

Acknowledgment & Acceptance of Disclosure

Loan/Grant Application Disclosure

STATE OF CALIFORNIA FAIR LENDING NOTICE

STATE OF CALIFORNIA

DISCLAIMER OF COMMITMENT: The signing of an application form and/or any related documents in connection with our application for a home improvement loan/grant with the CITY OF PALM DESERT - HOUSING DIVISION (hereinafter called "City") does not mean or imply that there is a commitment on the part of the City to grant us any loan/grant. Any expression to us of confidence that we might obtain a loan/grant, at a particular rate or amount, is an expression of belief and opinion only by the one making it, and no to be relied upon by us as a representation by an authorized agent of the City. I/We further understand that if I/we should cause the loan/grant to cancel after the construction contract has been executed and the rehabilitation work has commenced, I/we are liable for any costs associated with the cancellation from the time of the loan application (i.e. credit report fee, etc.).

FAIR CREDIT REPORTING ACT (FCRA): An investigation will be made as to the credit standing of all individuals seeking credit in this application. The nature and scope of any investigation will be furnished to you upon written request made within a reasonable period of time. In the event of credit denial due to an unfavorable consumer report, you will be advised of the identity of the Consumer Reporting Agency making such report and of your right to request within sixty (60) days the reason for the adverse action, pursuant to provisions of section 615(b) of the Fair Credit Reporting Act.

EQUAL CREDIT OPPORTUNITY ACT (ECOA): The Federal Equal Opportunity Act prohibits discrimination against credit applicants on the basis of sex and marital status. Beginning March 23, 1977, the Act extends this protection to race, color, religion, natural origin, age (provided that the applicant has the capacity to contract), whether all or part of the applicants income is derived from any public assistance program, or if the applicant has in good faith exercised any right from the Consumer Credit Protection Act. The Federal Agency that administers compliance with this law concerning this agency is the Federal Trade Commission, Pennsylvania and 6th Street, NW, Washington, DC 20580. We are required to disclose to you that you need not disclose income for alimony, child support or separate maintenance payment if you choose not to do so. Having made this disclosure to you, we are permitted to inquire if any of the income shown on your application is derived from such a source and to consider the likelihood of consistent payment as we do with any income on which you are relying to qualify for the loan for which you are applying.

Acknowledgment & Acceptance of Disclosure

Borrower(s) Signature Authorization Form

I/We hereby authorize CITY OF PALM DESERT - HOUSING DIVISION to verify my past and present employment earnings records, bank accounts, stockholdings, and any other asset balances that are needed to process my mortgage loan/grant application. I/We further authorize CITY OF PALM DESERT - HOUSING DIVISION to order a consumer credit report and verify other credit information, including past and present mortgages and landlord references.

CITY OF PALM DESERT - HOUSING DIVISION may also utilize the services of CREDIT SERVICE CO. to further verify my personal credit information and the information CITY OF PALM DESERT - HOUSING DIVISION obtains is only to be used in the processing of my application for a mortgage loan/grant. It is understood that a copy of this form will also serve as authorization. This authorization expires 120 days from the date indicated below.

Privacy Act Notice: This information is to be used by the agency collecting it or its assignees in determining whether you qualify as a prospective mortgagor under its program. It will not be disclosed outside the agency except as required and permitted by law. You do not have to provide this information, but if you do not your application for approval as a prospective mortgagor or borrower may be delayed or rejected. The information requested in this form is authorized by Title 38, USC, Chapter 37 (if VA); by 12 USC, Section 1701 et. seq. (if HUD/FHA); by 42 USC, Section 1452b (if HUD/CPD); and Title 42 USC, 1471 et. seq., or 7 USC, 1921 et. seq. (if USDA/FMHA).