Garden Grove : Buena Clinton Owners May Get Lower Rates

The interest rates on federally funded loans for Buena Clinton property owners may drop soon, thanks to a City Council action that will help landlords fix up run-down apartment buildings.

Under the current program, borrowers can apply for loans of up to $10,000 per housing unit at four percentage points below market rate interest. No points or administrative fees are added to the loans, which are fully amortized for up to 15 years.

Under the modified program, loans would be available at six points below market rate, said Jeanette Justus, director of housing and neighborhood development.

Additionally, another loan program would be available, offering $5,000 per unit, requiring the owner to match dollar-for-dollar the amount of the loan, Justus said. Those loans would be interest-free and due and payable in five years or upon sale or transfer of title.

Code-related improvements, such as repair of roofs and plumbing, electrical or structural problems would take priority, but other tasks like painting and remodeling would not be excluded, Justus said.

Rental properties in other areas of the city also would be affected, but the greatest impact would be on Buena Clinton, the city’s poorest neighborhood, officials said.

The council action is the first step in modifying the rental property improvement program.