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 Vallejo Neighborhood Housing Services, Inc.

New Rental Rehab Program

The "Voucher Rehab Loan" is a 3% interest rate loan designed to help landlords fix up their rental units. In return for receiving a 3% loan, landlords must rent to families with Vouchers/Section 8.

The Rehab loans can have a term of no more than 30 years. Interest rate is 3% and remains fixed for the entire term. Payments are set up as amortized with no prepayment penalties after the tenth year. Prior to the completion of the tenth year, there is a prepayment penalty of 10 %. When title changes, in any fashion, the loan is due and payable.

Loan amount is limited to $50,000.00 per unit.

Contractors are chosen from the VNHS pre-approved list or owner obtained estimates, minimum of three, with that contractor(s) being able to qualify under VNHS Contractor Guidelines. VNHS pays the contractor directly, as work is completed and accepted by the property owner and our inspector.

The $250.00 application fee, per loan is non-refundable and contributes to help cover the costs of the final formal appraisal, all termite inspections, our building inspections, and credit report. The balance of fees may be included in the loan amount or paid by the property owner.

There is a covenant that is attached to the property for ten years. This covenant stipulates that the landlord will rent to families with Vouchers / Section 8. After the tenth year, the covenant may be removed. This covenant is between the property owner and the City of Vallejo.

Basic Process toward Loan amount determination:

Termite report:

  • The Pest Inspection Company will be calling for to set up appointment.
  • The Pest Inspection Company will return termite report to this office.

Job Specification and Cost Estimation report:

  • The Home Inspector will be calling to set up appointment to do the cost estimation and scope of work.
  • The Home inspector will return cost estimation and scope of work to this office.

Owner Meeting with Project Manager: (This meeting will take place at the subject property)

  • Discuss termite report
  • Discuss scope of work and estimate.
  • Owner will select approximately three contractors to send bid packets to.

Send out Bid Packets:

  • Send out copies of scope of work and termite to each contractor selected.
  • Contractors have approximately TWO weeks to return bids to this office.

Receive Bids:

  • Once we have at least three bids returned, the Project Manager will set up an appointment to review them with you, or until all attempts to receive three bids are exhausted.

Owner Meeting With Project Manager:

  • Discuss bids and select Contractor.
  • Owner signs contract stating that they have selected the Contractor.

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