LCHRTF Housing Rehabilitation Program, Pilot Phase

Lake County Regional Housing Trust Fund
(LCRHTF)
SINGLE-FAMILY
HOUSING REHABILITATION
Pilot Program
Program Guidelines
LCRHTF Housing Rehabilitation Program Guidelines
Pilot Program, Version 1 (09/14/2026)

Lake County Regional Housing Trust Fund (LCRHTF)
Single-Family Housing Rehabilitation
Pilot Program
TABLE OF CONTENTS
SECTION Page
1.0 GENERAL ............................................... Error! Bookmark not defined.1
2.0 APPLICANT QUALIFICATIONS .......................................................... 5
3.0 PROPERTY ELIGIBILITY .................................................................... 8
4.0 THE GRANT PROGRAM ..................................................................... 8
5.0 GRANT REQUIREMENTS ................................................................... 9
6.0 CONSTRUCTION ................................................................................. 9
7.0 EXCEPTIONS AND SPECIAL CIRCUMSTANCES ........................... 11
8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES.......................12
ATTACHMENT A: ANNUAL INCOME INCLUSIONS/ EXCLUSIONS .......... 13
ATTACHMENT B: DEFINITIONS AND ANNUAL NET FAMILY INCOME
AND ASSET INCLUSIONS AND EXCLUSIONS.....................................22
ATTACHMENT C: PERMITTED AMOUNT ................................................... 25
ATTACHMENT D: LEAD HOUSING REDUCTION ACTIVITY ...................... 26
ATTACHMENT E: CERTIFICATE OF OCCUPANCY ................................... 27
LCRHTF Housing Rehabilitation Program Guidelines
Pilot Program, Version 1 (09/14/2026)

LCRHTF Housing Rehabilitation Program Guidelines
1.0 GENERAL
The Lake County Regional Housing Trust Fund (LCRHTF) Housing Rehabilitation
Program ("Program") - Pilot phase has been created in order to preserve existing
housing stock and improve the health and safety for Lake County residents through
housing rehabilitation.
The Lake County Regional Housing Trust Fund Rehabilitation Program described herein
and hereinafter referred to as the "Program" is designed to provide assistance to
eligiblehomeowners to be able to correct code violations, typically health and safety
code violations, or ADA modifications, located within the Program's eligible area, as
described in Section 3.0. The Program provides \ assistance in the form of grants for
necessary repairs, creating a healthy, safe, sanitary and code compliant home, referred
to herein as "housing unit" or "home".
Staff designated by the LCRHTF Administrative Board to administer the LCRHTF
Housing Rehabilitation Program are described herein and hereafter shall be referred to
as the "Program Operator" or "Operator". The Lake County Regional Housing Trust
Fund (LCRHTF) retains the right to use a consultant to administer the LCRHTF
Rehabilitation Program. The terms "Program Consultant" and "Program
Operator" both reference the staff that will administer the LCRHTF Housing
Rehabilitation Program.
The terms "Owner," "Property Owner" or "Homeowner" refer to the legal owner of the
housing unit or home.
1.1. PROGRAM REFERRAL
The LCRHTF Housing Rehabilitation Program, Pilot Phase, is a referral only program.
Referrals to the Program are made solely by County of Lake, City of Lakeport, and City
of Clearlake Code Enforcement officers that have determined that the housing is
substandard and that there is a health and safety code violation, ADA (Americans with
Disabilities Act) repair, or other code violation that needs to be corrected. An initial
interview, conducted by the County of Lake Code Enforcement Officer ("Code
Enforcement Officer") and the homeowner determines whether the homeowner, the unit
and the repairs are likely eligible under program rules and guidelines. Final
determination for eligibility is determined after submission of the housing rehabilitation
application and verification of information submitted in the required documents.
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All outreach efforts and referrals will be done in accordance with state and federal fair
lending regulations to assure nondiscriminatory treatment, outreach and access to the
Program. No person shall, on the grounds of age, ancestry, color, creed, physical or
mental disability or handicap, marital or familial status, medical condition, national origin,
race, religion, gender or sexual orientation, be excluded, denied benefits or subjected to
discrimination under the Program.
Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise
qualified individual, solely by reason of disability, from participation under any program
receiving Federal funds. The Program Operator will take appropriate steps to ensure
effective communication with disabled housing applicants, residents and members of the
public.
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1.2. APPLICATION PROCESS AND SELECTION
A. Referral and Timeline Requirements:
Upon written referral by the Code Enforcement Officer, the applicant will
complete the required application and provide the documents and any
information required in order to verify eligibility within the specified timeframe.
Homeowners are offered the opportunity to qualify for assistance on a first-come,
firstserved basis as long as program funds remain available. Once funds have
been expended the program may pause until funds are available.
Upon written referral by the Code Enforcement Officer, the homeowner has 60
days to complete and return the grant application and supporting documentation.
If the homeowner does not provide the completed application and supporting
documents within 60 days they will no longer be eligible for grants under this
program. An exception, may be considered for extenuating circumstances
however the request for an extension must be submitted and approved prior to
the end of the 60-day period.
C. Application/Interview
An application packet is provided to the homeowner for completion and submittal
to the Program Operator, along with supporting documentation. An interview is
scheduled with the applicant within 30 days of receiving the application and
supporting materials. The Program is fully explained; application forms and
documentation are reviewed. Verifications are obtained for income, assets,
employment, benefits, and mortgage. Title report and appraisals are also
obtained.
D Household Selection
This is a referral only program. Referrals are made by Code Enforcement Officers
that have determined that a homeowner is eligible and is reasonably unable to
correct the violation(s) cited using their own resources. Households selected for
participation in the LCRHTF Housing Rehabilitation Program are those determined
eligible upon completion of processes described in 1.2.A. and 1.2.C.
E. Initial Inspection/Work Write-Up/Estimate
Applicants will provide "Right of Entry" permission to the referring officer and
program staff that includes necessary staff and inspections. Prospective units
are inspected by a Code Enforcement Officer to determine eligibility and
acceptability of properties for participation in the Program.
If the home is a pre-1978 unit, the initial inspection will also include paint testing
by a certified Lead-Based Paint (LBP) inspector/assessor or presumption of LBP.
If the home contains asbestos, and the estimated cost of mitigation plus the cost
of repairs exceeds the $50,000 per unit threshold the unit will not be eligible
under Program guidelines.
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F. Bid Solicitation
A bid walk-through date and time are scheduled by the Program Operator.
Invitations to bid are mailed or emailed to all eligible contractors on file in efforts to
obtain reasonable bids. Bid results will be provided to participating contractors.
Contractors must be licensed and bonded by the State of California Contractors
Licensing Board. Contractors must also provide Program Operator with evidence
of Workers' Compensation Insurance and Comprehensive General Liability and
Property Damage Insurance with Combined Single Limits of at least $1,000,000.
The Program Operator determines eligibility of the contractor by contacting the
State Contractors License Board and checking the Federal List of Debarred
Contractors. The contractor is also required to provide a self-certification stating
that he/she is not on the Federal debarred list. Once determined eligible, the
contractor is then notified of provisional award of bid (pending grant approval). The
Program Operator determines contractor selection using their own contractor
selction process and this process is not subject to the County Purchasing
Ordinance. Notices of non-award are mailed or emailed to participating
contractors.
G. Request/Approval
A report is prepared by the Program Operator. The report includes the cost of
construction and other project related costs (listed in Section 6.3.). A Grant Review
Committee meeting is scheduled to hear the grant request. Section 1.3 provides
additional information on the grant approval process. Once approved, grant
documents are executed and the grant is funded.
H. Pre-Construction Conference
A pre-construction conference is scheduled with homeowner, contractor, and
Program Operator. The Program Operator reviews the Owner-Contractor
Construction Contract, including the work write-up, start date, pay schedule, and
date of completion, with the homeowner and contractor. The construction contract
and Notice to Proceed are executed.
I. Start-Up/Field Inspections
The Program Operator monitors date of start-up and performs field inspections on
a regular basis. The Program Operator will visit the job site regularly in order to
check the scope of work, inspect materials, and to confirm the job is on schedule
and within budget. The Program Operator works with the appropriate jurisdiction's
Building Inspector to ensure the work meets building codes, while not exceeding
funding limits.
The Program Operator reviews the work status with the homeowner and with the
contractor in order to remedy any developing problems quickly and to ensure that
both are satisfied with the construction process. At the completion of each phase,
the Program Operator inspects the work and authorizes contractor payments.
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The Program Operator will refer back to original plans and specifications to verify
the work was completed as contracted.
J. Change Orders
Written change orders are required when requests for any changes in the write-
up, such as eliminating an item completely, eliminating one item and substituting
another, or adding items. The change order will state the change and dollar value
for the change. The change order must be signed by both the contractor and the
homeowner, and submitted to the Grant Review Committee for approval.
If the change order exceeds the approved amount of the grant, the homeowner will
be asked to provide additional funds or a report and request for additional funds
may be presented to the Operator's Grant Review Committee for approval prior to
Program Operator signing-off on the change order.
K. Final Inspections/Notice of Completion/Final Payment
When the project is completed, the Program Operator inspects the work item by
item with the homeowner, the contractor, and/or the Operator. The Operator's
Building Inspector performs a final inspection. Any corrections or deficiencies are
noted and corrected by the contractor. Upon favorable final inspections, a Notice
of Completion is prepared, signed by the homeowner, and then recorded. The
final payment is released within 30 days after the recording of the Notice of
Completion.
1.3. GRANT PROCESS
The LCRHTF Board of Trustees must approve all grants. The Grant Review Committee
shall consist of LCRHTF Board of Trustees during the Pilot Phase. There must be a
minimum of three Board of Trustees present to make a determination whether to approve
or not to approve a Grant.
In order to obtain grant funding, applicants must meet all property and eligibility guidelines
in effect at the time the application is considered. Homeowners will be provided written
notification of approval or denial. Any reason for denial will be provided to the applicant
in writing.
1.4. CONFLICT OF INTEREST REQUIREMENTS
(a) Conflicts prohibited. No persons described in this section who exercises or has
exercised any functions or responsibilities with respect to activities assisted with
housing rehabilitation grant funds or who are in a position to participate in a decision
making process or gain inside information with regard to these activities, may obtain
a financial interest or benefit from a grant-assisted activity, or have a financial interest
in any contract, subcontract or agreement with respect to the grant-assisted activity,
or the proceeds from such activity, either for themselves or those with whom they have
business or immediate family ties, during their tenure or for one year thereafter.
Immediate family ties include (whether by blood, marriage or adoption) the spouse,
parent (including stepparent), child (including stepchild), brother, sister (including a
stepbrother or stepsister), grandparent, grandchild and in-laws of a covered person.
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(b) Persons covered. The conflict of interest provisions of paragraph (a) of this section
apply to any person who is an employee, agent, consultant, officer, or elected official or
appointed official of the participating jurisdiction, State recipient, or subrecipient which are
receiving LCRHTF grant funds.
(c) Exceptions: Threshold requirements. Upon the written request by the homeowner, the
LCRHTF Grant Review Committee may grant an exception to the provisions of paragraph
(a) of this section on a case-by-case basis when it determines that the exception will serve
to further the purposes of the LCRHTF Housing Rehabilitation Program and the effective
and efficient administration of the participating jurisdiction's program or project.
A contractor with a vested interest in the property cannot bid on a rehabilitation job. Such
a contractor may act as owner/builder, subject to standard construction procedures.
Owner/builders are reimbursed for materials purchased which are verified by
invoice/receipt and used on the job. Reimbursement occurs after the installation is verified
by the Program Operator to be part of the scope of work. Owner/builders are not
reimbursed for labor.
2.0 APPLICANT QUALIFICATIONS
2.1. INCOME LIMITS
The LCRHTF will offer grants to low-to-moderate income homeowners referred to as
"the applicant" or "applicants" to pay for rehabilitation to single-family homes located
within the boundaries of the Lake County. Applicants shall meet the eligibility
requirements as described in these guidelines to participate. At least one of applicants
on the application must be the homeowner. The income limits in place at the time of
grant approval will apply when determining applicant income eligibility. All applicants
must have household incomes at or below 80% of the County's area median income
(AMI), adjusted for household size, as published by HCD each year. See Attachment C.
The link to the official HCD Income Limits is:
Official State Income Limits for 2025 (Effective April 23, 2025) | California Department of
Housing and Community Development
Household: means one or more persons who occupy a housing unit.
Annual Household Income: Generally, the gross amount of income of all adult household
members that is anticipated to be received during the coming 12-month period.
The maximum grant amount of program assistance is up to $50,000 or the amount needed
for rehabilitation, whichever is less. During the Pilot phase, 100% of proposed work shall
be for the correction of substandard code violations posing a health and safety concern.
Items that may be eligible for rehabilitation include but are not limited to: roofing, exterior
painting, stucco, faulty plumbing, heating and hazardous wiring repairs and security
lighting. The grant is to be used on a one-time per property basis.
The Pilot phase of the Program is a grant funded program therefore credit reports and
information regarding income to debt ratios are not required or requested.
2.2. INCOME QUALIFICATION CRITERIA
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Projected annual gross income of the applicant's household will be used to determine
whether they are above or below the published HCD income limits. Income will be verified
by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank
statements and third-party verification of employment forms sent to employers. All
documentation shall be dated within six months of the written request by the Operator and
kept in the applicant file and held in strict confidence.
A. HOUSEHOLD INCOME DEFINITION:
Household income is the annual gross income of all adult household members that
is projected to be received during the coming 12-month period, and will be used to
determine program eligibility. Refer to Income Inclusions and Exclusions for
further guidance to the types of incomes to be included or excluded when
calculating gross annual income. For those types of income counted, gross
amounts (before any deductions have been taken) are used. Two types of income
that are not considered would be income of minors and of live-in aides. Certain
other household members living apart from the household also require special
consideration. The household's projected ability to pay must be used, rather than
past earnings, when calculating income.
See Attachment A: HOME and CDBG 24 CFR Part 5 Annual Income
Inclusions and Exclusions
B. ASSETS:
There is not an asset limitation requirement for participation in the Program however one
of the program requirements for referral by the code enforcement officer is that the
homeowner is willing but not able to do the repairs nor do they have the ability to pay for
the proposed repairs. Income from assets is, however, recognized as part of annual
income under the Part 5 definition. An asset is a cash or non-cash item that can be
converted to cash. The value of necessary items such as furniture and automobiles are
not included. (Note: it is the income earned - e.g. interest on a savings account - not the
asset value, which is counted in annual income.)
An asset's cash value is the market value less reasonable expenses required to convert
the asset to cash, including: Penalties or fees for converting financial holdings and costs
for selling real property. The cash value (rather than the market value) of an item is
counted as an asset.
See Attachment B: Annual Net Family Income and Asset Inclusions and Exclusions
2.3. HOMEOWNER ELIGIBILITY AND RESIDENCY REQUIREMENTS
The LCRHTF Housing Rehabilitation Program allows for homeowner's properties to
participate in the Program. Homeowner units must be the owner's principal place of
residence. A photocopy of a recent utility bill will verify proof of occupancy. No unit to be
rehabilitated will receive financial assistance if it is currently occupied by an over-income
household or does not meet the eligibility standards outlined in these guidelines.
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2.4 OWNER-OCCUPIED REQUIREMENT
A. Continued residency is monitored annually per Attachment F for five years from
the date of grant disbursement. Occupancy will be verified by the submission of
the following:
1. Proof of occupancy in the form of a copy of a current utility bill; and
2. Statement of unit's continued use as primary residence of the homeowner.
B. Legal Agreement:
Homeowners shall sign an agreement at the time of application submission and
prior to any constructions work commencing which acknowledges that the
homeowner is aware that they must continue to occupy the home as a primary
residence for the following 5 years after project completion. If the house is sold
during that 5 year period, the LCRHTF would recover 100% of the Grant. The
agreement will be recorded on title, such that, if a sale of the home is initiated
through escrow, the title company will repay the grant amount to the LCRHTF as
a part of the sale.
C. Sale of the Home: The Homeowner agrees to repay the Lake County Regional
Housing Trust Fund (LCRHTF) all of the funds paid for the rehabilitation of the
Home in the event that a homeowner sells, transfers title, or discontinues
residence in the rehabilitated property for any reason within 5 years of Grant
disbursement, the Grant becomes due and payable.
D. Conversion of the Home: If a homeowner converts the property to a rental unit, or
any commercial or non-residential use, within 5 years of Grant disbursement then
the Homeowner will be required to repay the full amount of the grant.
Death of Homeowner: Upon death of the Homeowner where the Homeowner is the Sole Owner
and dies within 5 years of project completion, the beneficiary or estate shall repay the Grant
amount in full to the LCRHTF unless the home is deeded to a family member, the beneficiary
meets the required income qualifications and approval is obtained from the Program Operator.
3.0 PROPERTY ELIGIBILITY
3.1. CONDITIONS
A. No unit will be eligible if a household's income exceeds the prescribed income
limits listed in Attachment C.
B. Units to be rehabilitated must be located within the cities of Lakeport, Clearlake or
the unincorporated areas of the Operator's jurisdiction, Lake County, CA.
C. Property must contain a legal residential structure intended for continued
residential occupancy.
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D. All repair work will meet Local Building Code standards. At a minimum, health and
safety hazards must be eliminated.
3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE
Homeowners are not eligible for temporary relocation benefits, unless health and safety
threats are determined to exist by the Grant Review Committee determines that there are
extenuating circumstances warranting the payment for relocation assistance. In cases
where relocation is determined to be necessary by the Operator, assistance may be
included as part of the grant award.
3.3 NOTIFICATION AND DISCLOSURES
A. Occupants of units constructed prior to 1978 will receive proper notification of
Lead-Based Paint (LBP) hazards as follows:
The Lead Hazard Information Pamphlet published by the EPA/HUD/Consumer
Product Safety Commission will be given to all owners regardless of the cost of
rehabilitation or paint test findings. If lead-based paint is found through testing or
if presumed, a Notice of Lead Hazard Evaluation or Presumption will also be
supplied. When Lead hazards are present, a Notice of Lead Hazard Reduction
Activity and a Lead Hazard Evaluation Report will also be provided (Attachment
E).
4.0 THE GRANT PROGRAM
4.1 MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
An eligible Homeowner may qualify for the full cost of rehabilitation/reconstruction work
needed to comply with State, County, City and/or local codes and ordinances. Maximum
assistance shall not exceed the limit of $50,000.00.
Any bid within 10% of the Program Operator's estimate may be selected, otherwise an
explanation must be provided and approved by the Grant Review Committee and included
in the applicant's file for a bid selected which exceeds 10% of the estimate.
5.0. GRANT REQUIREMENTS AND RESTRICTIONS
5.1. RECEIVING GRANT REPAYMENTS
A. As the fiscal agent for the LCRHTF, the County of Lake will be the receiver of the
recaptured funds and will maintain a financial record-keeping system to record
payments. Payments shall be deposited and accounted for in Lake County
Regional Housing Trust Fund (the Operator's) account.
B. Payments will be made to:
Lake County Regional Housing Trust Fund (LCRHTF)
Attn: LCRHTF, Housing Rehabilitation Program
255 N. Forbes St.
Lakeport, CA 95453
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