Housing Programs
The Stanton Redevelopment Agency, formed in July, 1979 was expanded in 2000. The Agency operates as a separate legal entity from the City of Stanton with the budget and annual work program established by the City Council acting as the Agency Board of Directors. The Agency maintains four separate funds. One of which is the Low and Moderate Housing Fund. This fund contains monies, which are required by redevelopment law to be "set aside" for use in preserving and expanding the affordable housing stock. The primary objective of the Housing Program is to preserve and increase the city's supply of low and moderate income housing units. The Low and Moderate Housing Program supports the upgrading and expansion of  the affordable housing stock in the city through the use of grants, loans and other assistance to individual homeowners, private developers and other public entities.
Currently, the following programs are being offered to assist in the rehabilitation of residential single-family, multi-family and mobile homes.

• HOMES Loan Program New First-Time Homebuyer Assistance Program/Funds Currenlty Exhausted
• Homeowner Rebate Program
• Landlord/Tenant Rebate Program
• Mobile Home Grant Program
• Rehabilitation Loan Program
• Affordable Housing List
• 2008 State Income Limits

Home Ownership & Mortgage Equity Share HOMES Loan Program

What is the HOMES Loan Program?
The Stanton Redevelopment Agency is offering down payment assistance to eligible first-time homebuyers under its New HOMES Loan Program. Eligible persons/households can receive up to $40,000 in assistance to purchase a home in the City of Stanton.  Assistance is in the form of a forty-five year loan with interest and payments deferred for the first ten years of the loan. The HOMES Loan is secured by a second trust deed in conjunction with a first mortgage offered by a participating lender.

How do I/we apply?
The process of applying for participation in the City of Stanton’s HOMES Loan Program is designed to serve as a guideline with respect to the sequence of events. While completion of each of the steps outlined below must occur at some point during the process, they may occur in an order other than that illustrated below:

• Applicant(s) complete(s) a pre-application and return it to the City of Stanton.
• Once the City grants preliminary approval, the applicant may contact an approved lender (from an Approved Lender List provided by the City) to apply for and receive pre-approval for mortgage financing.
• Applicant meets with a Realtor to locate a single-family home, town home or condominium located in the City of Stanton. After the Buyer’s offer is accepted, the applicant formally applies to the approved lender for a mortgage loan.
• Lender obtains mortgage loan approval for applicant and submits the approved loan package to the City for underwriting of the HOMES Loan. If all underwriting criteria are met, City grants final approval to applicant and prepares loan documents for review and signature. This process takes approximately five to ten working days. The applicant has a maximum of 45 days to complete the purchase after approval of the HOMES loan. 

Equity Sharing
The HOMES loan program is an Equity Share program.  For the first ten (10) years the homeowner is responsible for the repayment of one hundred percent (100%) of the Equity Share percentage, agreed upon at loan approval.  If no default occurs on the first mortgage the Equity Share percentage decreases every year by ten percent (10%) and is forgiven after the forty fifth (45) year.  If the home is sold, refinanced or transferred after the tenth (10) year; the remaining equity share is due and payable, including any deferred interest and the original loan amount of $40,000.
Example: 

• Agency loan of $40,000 divided by the Sales price of $400,000 ($40,000 / $400,000) would equal = 10% and that would be the equity share percentage.
• Five years later, home sells for $500,000 appreciation is $100,000.   Equity share would be 100% of the 10% equity share of the appreciation or $50,000.
• If property is sold twelve years after the purchase, the equity share would be 75% of the appreciation and of that 10% equity share would be due. 
  

Year                                 Percentage of Equity Share Payment
 
1-10                               100%
11-15                               75%
16-20                               50%
21-30                               25%
30-45                               10%

Note:   If the participant sells the property to a low- or moderate-income homebuyer anytime during the 45 year affordability period, some or all deferred interest and any equity share may be forgiven at the discretion of the Agency

Interest Rate
The HOMES loan interest will be deferred for the first ten (10) years at a zero percent (0%) interest rate.  Commencing in year eleven (11), the HOMES loan will accrue interest at the rate of three percent (3%) annual interest.

Term of Loan
The Redevelopment Agency Loan will be a deferred, forty-five (45) year loan, second mortgage secured by a first trust deed. 

Affordability Covenant
Your Property is subject to an Affordability Covenant that restricts who the Property may be sold to, at what price, and the terms and conditions of any financing or refinancing.  The affordability restrictions prohibit renting or leasing of the Property, and all properties are to be occupied as the primary residence.  The Redevelopment Agency’s loan is not assumable. 

What is an Eligible Property?
Eligible Properties may be affordable single-family detached homes, condominiums or town homes located within the City of Stanton.  Eligible Properties must be inspected by an independent third party inspector at either the buyer’s or seller’s expense. The condition of the property as reported by such inspector must satisfy the standards of the Participating Lender. In addition, all code violations and/or health and safety deficiencies reported by such inspector, and all un-permitted improvements must be corrected and permitted (if applicable) as a condition precedent to funding a HOMES loan.

Do I Qualify?
In order to qualify for a HOMES loan, an Applicant’s total combined gross household income may not exceed one-hundred and twenty percent (120%) of the area median income for Orange County adjusted for family size as set and adjusted annually by the United States Department of Housing and Urban Development (HUD). 

2009 First-Time Homebuyer Program Income Limits

# of Persons in Household          Moderate Income Limit
   1                                      $  72,300
   2                                      $  82,650
   3                                      $  92,950
   4                                      $103,300
   5                                      $111,550
   6                                      $119,850
   7                                      $128,100
   8                                      $136,350

In compliance with California Community Redevelopment Law, a participant’s monthly housing costs (including principal, interest, taxes, insurance, homeowner association dues, and a reasonable utility allowance) must be affordable. In general, this means that the participant’s total housing cost may not be less than 28% or exceed 35% of gross monthly income.

Eligible Applicant's total down payment (HOMES loan and homebuyer's down payment) must not exceed thirty-five percent (35%) of the purchase price of the home.  The HOMES Program loan will be subordinate to the first mortgage no lower position is acceptable.

Eligible Applicants cannot have held an ownership interest in real property within the last three (3) years ending on the date the HOMES loan documents are executed or must qualify as Displaced Homemaker.  Eligible Applicants must also be legal residents of the United States.

The following types of loan programs and refinancing are ineligible, and will be strictly enforced:

• no increase in the principal (except by an amount of reasonable closing costs);
• no cash/equity withdrawal;
• no variable interest rate;
• no negative amortization schedule;
• no interest only payment structure;
• no subordination below second position.

Note: Eligible Applicants must have an acceptable credit "score" with a minimum rating of "fair".

Liquid assets include all funds held in savings, checking, money market, brokerage and trust accounts. Furthermore, equity held in real estate holdings will be considered liquid for the purpose of this program. Assets held in IRA’s, 401(k) and other qualified deferred compensation retirement accounts, and whole life and whole life derivative insurance policies shall not be considered liquid for the purposes of this program.

HOMES Loan Program Forms:

• HOMES Program Fact Sheet
• HOMES Pre-Application Checklist
• HOMES Loan Program Guidelines

Homebuyers interested in participating in the HOMES Loan Program may print out the forms online or pick up an application package at City Hall located at 7800 Katella Avenue.  All questions may be directed to the Housing Division at (714) 379-9222 extension 247.

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HOMEOWNER REBATE PROGRAM

The Stanton Redevelopment Agency operates a Homeowner Rebate Program that provides rebates of up to $5,000 for qualified home improvements. Program qualifications include: Property should be a single-family house or condominium Homeowner must reside in their home located within the Stanton city limits Improvements may be for any of the following: Exterior curb appeal Improving Energy-efficiency Addressing Health & safety items Correcting Code violations Pre-approval from City is required prior to commencement of work A list of City approved licensed contractors is available upon request Homeowner may only participate in this program every (2) years Funds are limited and restrictions apply

Homeowner Rebate Program Forms:

• Homeowner Rebate Program Information Sheet
• Homeowner Rebate Program Enrollment Application
• Homeowner Rebate Program Qualified Energy Efficiency Improvements
• Contract for Construction Between Owner and Contractor
• Homeowner Rebate Program Required Documentation Checklist

 

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LANDLORD/TENANT REBATE PROGRAM

The City of Stanton Redevelopment Agency is pleased to announce that residential Rental Properties may now participate in the City's Housing Rebate Program. The program provides rebates of up to 25% of the cost of improvements or repairs with a maximum of $2,500 for each applicant/unit. Landlords and Tenants must both participate in the application process. Applications are processed on a first-come first-served basis. Program qualifications include:

• Property should be a single-family home, condominium or multi-family units.
• Properties must be located within the Stanton city limits.
• Improvements may be for any of the following:
  • Exterior curb appeal
  • Improving Energy-efficiency
  • Addressing health & safety issues
  • Correcting of Code violations
• Pre-approval from City is required prior to commencement of work.
• A list of City approved licensed contractors is available on request.
• Homeowner may only participate in this program every (2) years.
• Funds are limited and restrictions apply.

Landlord/Tenant Rebate Program Forms:

• Landlord/Tenant Rebate Program Information Sheet
• Landlord/Tenant Rebate Program Enrollment Application
• Landlord/Tenant Rebate Program Required Documentation Checklist
• City of Stanton Rebate Program Qualified Energy Efficiency Improvements
• Contract for Construction Between Owner and Contractor
• Landlord/Tenant Statement of Information

 

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MOBILE HOME GRANT PROGRAM

The City of Stanton Redevelopment Agency is pleased to announce that applications are now available for the new Mobile Home Grant Program. The program will offer grants of up to $3,000 for repairs, purchase and installation of energy efficient appliances, and correction of code violations. Applications are processed on a first-come first-served basis. Program qualifications include: Home must be located in a Mobile Home Park. Owner must reside in their home located within the Stanton city limits. Income restrictions apply. Improvements may be for any of the following: Exterior curb appeal Improving Energy-efficiency Addressing Health & safety items Correcting of Code violations Pre-approval from City is required prior to commencement of work. A list of City approved licensed contractors is available on request. Homeowner may only participate in this program every (2) years. Funds are limited and restrictions apply.

Mobile Home Program Forms:

• Mobile Home Grant Program Information Sheet
• Mobile Home Grant Program Enrollment Application
• Mobile Home Grant Program Required Documentation Checklist
• City of Stanton Qualified Energy Efficiency Improvements
• Contract for Construction Between Owner and Contractor

 

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REHABILITATION LOAN PROGRAM

The Agency operates a Housing Rehabilitation Loan Program that offers 0% interest with a deferred payment. The program has a minimum loan amount of $5,000 and a maximum loan of up to $50,000. Repayment of the principal is due and payable in one lump sum upon sale, transfer of title, cash out refinance, or when homeowner no longer occupies the home. Given the availability of funds and application activity it may be necessary to place your name on a waiting list for funding to become available. Applications are processed on a first-come first-served basis. Program qualifications include:

• Stanton homeowners who have combined household income below 120% of the Orange County Median Family income are eligible.
  (Visit http://www.hcd.ca.gov/hpd/hrc/rep/state/inc2k8.pdf for the 2008 income limits)
• Property should be a single-family house. (Condominiums & Townhomes ineligible)
• The Homeowner must have at least 20% equity available after City loan is approved.
• Properties must be located within the Stanton city limits.
• Some eligible improvements include but are not limited to:
  

  Correction of Code violations Improving Energy-efficiency Addressing Health & Safety issues Structural repairs Water heater Electrical repairs Windows Plumbing repairs

  Stucco Aluminum wiring Driveways Exterior/interior painting Vinyl flooring Front/garage door Landscaping Fumigation

• Pre-approval from City is required prior to commencement of work.
• A list of City approved licensed contractors is available on request.
• Funds are limited and restrictions apply.

Rehabilitation Loan Program Forms:

• Rehabilitation Loan Program Information
• Rehabilitation Loan Program Enrollment Application
• Rehabilitation Loan Program Required Documentation Checklist
• Lead Base Paint Notification
• Problems in Your Home Information Sheet

 

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AFFORDABLE HOUSING

The City of Stanton maintains a listing of affordable housing units constructed in the city. The projects were financed through a variety of sources, and included funding from the City of Stanton and/or the Stanton Redevelopment Agency. As a condition of funding, owners of such developments entered into a commitment to keep rents affordable in a specified number of rental units within each property.

For more information please contact the individual property owners/managers.
Affordable Housing List

For more information on any of the programs please call the City of Stanton, Housing Division at (1-714-379-9222) ext. 247 or email wpratt@ci.stanton.ca.us . If mailing application please send to the City of Stanton at 7800 Katella Avenue, Stanton, Ca. 90680 attn: Housing Division

 

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