|
 |
 |
|
Finding Retrofit Money |
|
Generally speaking there are two sources for retrofit money, private and public. Private money is available from mortgage companies, savings and loans and other real estate lenders. These loans are made based on the equity you already own on your real estate. While a number of new names for these loans have been invented by marketing people, they all amount to a second mortage on your property. We feel that borrowing money for a seismic retrofit is a very prudent use of such funds.
AdvertisingMortgageCompany.com is an excellent source for second mortgages or home equity loans.
Public money is available in certain locals and takes a number of forms including grants, grant programs, and loan guarantee programs.
Call your local government to see what help is available in your area. Here are some places to start in the San Francisco Bay Area.
The ABAG Finance Authority For Nonprofit Corporations helps eligible nonprofits and other borrowers with tax-exempt debt financing. In March 1999, Channing House, a nonprofit corporation owning an 11-story building in Palo Alto, California was issued $23 million in Revenue Certificates of Participation. Channing House comprises 232 Residential Care Facilities for the Elderly (RCFE) apartment units and seven rooms for skilled nursing services with 21 beds. The 232 RCFE units consist of 32 assisted-living units, 98 studio units, 89 one-bedroom units, and 12 two-bedroom units. With help from the Authority, the interest rate was, below market, only 5.25%. The money was spent mostly for seismic retrofit. Rinne-Peterson, a bay area engineering firm, developed a retrofit design utilizing seismic isolators. This retrofit design was chosen to minimize the construction disruption to the elderly occupants of the building.
The California Earthquake Authority (CEA) is offering the "State Assistance for Earthquake Retrofitting" (SAFER) Program. The program starts with referrals to trained professionals. Completion of retrofit may make policy holders eligible for insurance discounts. Qualified homeowners are referred to an engineering firm, who inspects and prepares a report stating areas that will benefit from retrofitting. Homeowners are then referred to CEA-screened contractors. CEA then assists in arranging low-interest loans. The program is open to homeowners in: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Sonoma, and Ventura counties. There are some restrictions. For more informaiton, call 1(877) 723-3755.
Berkeley's award-winning local government program, the Seismic Retrofit Incentive Program offers financial incentives to property owners in the City of Berkeley. The program includes a waiver of building permit fees for all qualified retrofit projects and a rebate of up to one-third of the City's 1.5% property transfer tax if the funds are used for qualified retrofit projects.
Fannie Mae/FEMA "Project Impact Prevention Loan Program"
Fannie Mae and the Federal Emergency Management Agency (FEMA) help Bay Area residents protect their homes against natural disasters. For improvements such as foundation bolting/repair, chimney replacement, cripple wall stiffening, shear wall system construction, and plywood sheathing below-market interest rates on loans up to $20,000 are available . Borrowers are not limited by income. At minimum 50% of the loan amount must be pay for seismic repairs. Only single family or 1-2 unit residential home qualify. They must be occupied by the borrower(s) as primary or secondary residence. Also eligible are manufactured homes (with axles removed) in parks or on private land. Homes in Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, or Sonoma County may qualify. Contact Fannie Mae's Consumer Resource Center, 1-800-7FANNIE.
The California Department of Insurance currently offers two retrofit programs. The Grants Program is available to low-to moderate income homeowners in Contra Coasta, San Mateo, Santa Clara, Orage, Imperial, and Riverside counties. Grants are available only for owner-occupied single family homes or mobile homes, and, cannot be used on previously recognized FEMA upgrades. There are some restrictions. Contact:
California Department of Insurance
Earthquake Grants and Loans Program
300 Capitol Mall, Suite 1300
Sacramento, Ca 95814
The Department's Loan Guarantee Program is a low-interest rate retrofit program offered in conjunction with Bank of America to qualified borrowers in certain areas. For more information, call 1(800) 489-6563, ext. 19112.
|
|
|
