HomeMy WebLinkAboutRES 2025-32RESOLUTION NO. 2025-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND
BAR APPROVING UPDATED PROGRAM POLICIES FOR THE HOME
IMPROVEMENT PROGRAM.
WHEREAS, the City %a Diamond Bar Home Improvement Program ("HIP") was
originally established in 2003 to preserve and enhance residential neighborhoods
throughout the City by providing interest -free, deferred loans to eligible owner -occupants
of single family detached dwellings for the following purposes: the preservation of safe,
decent and sanitary housing; to correct hazardous structural conditions; to make
reasonable accommodations for persons with disabilities; to improve the overall exterior
appearance of the home; to eliminate an appearance of blight; to provide energy -efficient
upgrades; and to correct exterior code violations.
WHEREAS, the City desires to update the HIP Program Policies to ensure that the
City verifies that loan recipients maintain compliance HIP's owner -occupancy
requirement.
WHEREAS, the City desires to increase the maximum loan amount for the Family Home Home Improvement Program ("SHIP") from $30,000 to $35,000 to cover labor and
materials costs.
WHEREAS, the City desires to allow the maximum loan amount to be increased
by up to $2,000 to cover actual costs of hazardous material testing and abatement, if
applicable, and title fees.
WHEREAS, the City desires to add a requirement that loan applicants provide
evidence of U.S. citizenship or legal immigration status as a condition of eligibility for the
HIP in accordance with a recent Department of Housing and Urban Development ("HUD")
mandate.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond
Bar as follows:
Section 1. That the updated HIP Program Policies are hereby adopted as shown
in Exhibit "A" attached thereto, and supersedes all previous Program Policies.
Section 2. That the City Council determines that the proposed action does not
constitute a project under the California Environmental Quality Act ("CEQA"), based on
Sections 15061(b)(1) and 15268 of the CEQA Guidelines because the projects are only
subject to the issuance of ministerial building permits.
Section 3. The City Clerk shall attest and certify to the passage and adoption of
this Resolution and enter it into the book of original resolutions, and it shall become
effective immediately upon its approval.
1
Resolution No. 2025-32
PASSED, APPROVED, AND ADOPTED this 161H day of September, 2025,
CITY OF DIAMOND BAR
Chia Yu Teng, Mayo
ATTEST:
I, Kristina Santana, City Clerk of the City of Diamond Bar, California do hereby certify that
the foregoing Resolution was duly and regularly passed, approved and adopted by the
City Council of the City of Diamond Bar, California, at its regular meeting held on the 16tn
Jay of September, 2025, by the following vote, to wit:
AYES: COUNCILMEMBERS: Chou, Liu, Low, MPT/Tye, M/Teng
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
Kris ina Santana, City Clerk
PROGRAM
PROGRAM POLICIES
CITY OF DIAMOND BAR
DEPARTMENT OF COMMUNITY
DEVELOPMENT
21825 EAST COPLEY DRIVE
DIAMOND BAR, CA 91765
REVISED DRAFT
DECEMBER 29, 2008
City of Diamond Bar
Community Development Department
21810 Copley Drive
Diamond Bar, CA 91765
Program
Policies
Home Improvement Program
ADOPTED BY THE CITY COUNCIL:
Resolution No. 2025-__
September 16, 2025
EXHIBIT “A”
Home Improvement Program Policies | September 19, 2025 i
Table of Contents
I. INTRODUCTION AND OVERVIEW .................................................................................................. 1
A. Purpose and Goal............................................................................................................................... 1
B. Program Objectives ........................................................................................................................... 1
C. Source of Funds ................................................................................................................................... 1
D. Denied Applications .......................................................................................................................... 2
II. SINGLE-FAMILY HOME IMPROVEMENT LOANS ............................................................................ 2
III. CONDOMINIUM HOME IMPROVEMENT LOANS ........................................................................... 4
IV. APPLICATION SUBMITTAL PROCESS ............................................................................................... 5
A. Pre-Screening ....................................................................................................................................... 5
B. Interest List ............................................................................................................................................. 5
C. Application ........................................................................................................................................... 5
V. ELIGIBILITY CRITERIA ....................................................................................................................... 6
A. Applicant Eligibility Requirements .................................................................................................. 6
B. Property Eligibility Requirements ................................................................................................... 10
VI. ELIGIBLE & NONELIGIBLE IMPROVEMENTS .................................................................................. 11
A. Order of Priorities for Eligible Improvements .............................................................................. 12
B. Eligible Improvements ...................................................................................................................... 12
C. Noneligible Improvements ............................................................................................................. 15
VII. ELIGIBLE & NONELIGIBLE COSTS .................................................................................................. 16
A. Eligible Costs ....................................................................................................................................... 16
B. Noneligible Costs. ............................................................................................................................. 16
VIII. TERMS AND CONDITIONS OF PROGRAM ASSISTANCE .............................................................. 16
A. Continued Owner-Occupancy Requirement .......................................................................... 16
B. Maintenance/Occupancy Requirements ................................................................................. 17
C. Hazard Insurance .............................................................................................................................. 17
D. Nondiscrimination ............................................................................................................................. 17
E. Compliance with Program Policies and Procedures .............................................................. 18
IX. GUIDELINE & COST AMENDMENT PROCEDURES ......................................................................... 18
A. Amendment - Program Guidelines. ............................................................................................. 18
B. Emergency Project Funding Modification. ................................................................................ 18
X. AUTHORITY TO ADMINISTER ......................................................................................................... 19
Appendix A – Certification of Continued Owner-Occupancy
Appendix B – Sample Deed of Trust for CDBG-funded loans
Appendix C – Sample Deed of Trust for PLHA-funded single-family residential loans
Appendix D – Sample Deed of Trust for PLHA-funded condominium loans
Home Improvement Program Policies | September 16, 2025 Page 0 of 19
Home Improvement Program Policies | September 16, 2025 Page 1 of 19
I. INTRODUCTION AND OVERVIEW
A. Purpose and Goal
The purpose of the City of Diamond Bar Home Improvement Program (HIP) is
to preserve and enhance residential neighborhoods throughout the City by
providing interest-free loans to eligible owners of single family detached and
attached dwellings for the following purposes: the preservation of safe,
decent and sanitary housing; to correct hazardous structural conditions; to
make reasonable accommodations for persons with disabilities; to improve
the overall exterior appearance of the home; to eliminate an appearance
of blight; improve energy efficiency; and to correct exterior code violations.
The HIP encompasses two loan categories:
1. The Single-Family Home Improvement Program (SHIP) offers interest-free,
deferred loans to income-eligible, owner-occupants of detached, single-
family homes, where the owner is responsible for the maintenance of
both the exterior and interior of the structure.
2. The Condominium Home Improvement Program (CHIP) offers interest-
free, deferred loans to income-eligible, owner-occupants of
condominiums, where a homeowners association (HOA) is primarily
responsible for exterior structure maintenance.
B. Program Objectives
Interest-free, deferred loans may be provided to eligible low- and moderate-
income households of owner-occupied residences to cover the cost of
housing repairs in accordance with the criteria outlined within this program.
A loan shall be repaid in full upon the sale or transfer of the home; when the
loan recipients no longer occupy the property; when the property is
refinanced; or when the loan recipients become owners of any other real
property.
C. Source of Funds
Funds for the Home Improvement Program are administered by the Los
Angeles County Development Authority (LACDA) through a subrecipient
agreement with the City of Diamond Bar. LACDA acts as an agent for, and
receives HIP funding from the following sources:
1. Community Development Block Grant (CDBG) funds made available by
the U.S. Department of Housing and Urban Development (HUD). These
funds are specifically targeted to benefit households earning no more
than the Los Angeles County CDBG Moderate Income limits published by
HUD.
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2. Permanent Local Housing Allocation (PLHA) funds collected through
State Property Transfer Fees. These funds may be used to benefit
households earning up to 150% of the Los Angeles County Area Median
Income (AMI) published by the California Department of Housing and
Community Development (HCD).
PLHA funds allow for a much broader scope of home improvement types
and household income categories than CDBG funds. The following
restrictions in the use of CDBG funds must be taken into account when
determining which funding source to use for a loan:
• CDBG funds cannot be used to fund CHIP loans.
• CDBG funds cannot be used when issuing loans to households earning
more than the CDBG Moderate Income limits.
CDBG and PLHA funds shall not be comingled to fund an individual HIP loan.
Each SHIP loan shall be funded by either CDBG or PLHA funds. CHIP loans
may only be funded by PLHA funds.
D. Denied Applications
Applicants who are denied authorization to participate in the City of
Diamond Bar’s Home Improvement Program for any reason other than
failure to submit a complete application may not reapply for assistance
within the following two (2) years after the date of the denial of the
application.
II. SINGLE-FAMILY HOME IMPROVEMENT LOANS
Eligible homeowners may utilize assistance under the deferred loan program.
Repeat assistance will be allowed for loans once every five (5) years provided
that the balance of all outstanding loans does not exceed the amounts
specified below. The City will offer the following home improvement programs to
assist low- and moderate-income households with necessary improvements to
their residences. Participation in the Single-Family Home Improvement Program
is subject to the additional requirements described in Sections IV through VII of
these Program Guidelines.
Household Income Limit: 80% or 150% of median income, depending on
funding source (see Section I.c above).
Minimum Loan Amount: $5,000
Maximum Loan Amount:
• $35,000 – for eligible construction costs (labor and materials).
• Up to $2,000 additional – for actual costs of:
o Hazardous material testing and abatement (if applicable), and
o Title fees.
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• If hazardous material abatement and title fees exceed $2,000, the excess will
be deducted from the $35,000 construction allowance.
Loan Amount Amendment: Applicants who initially elect to obtain a deferred
loan in an amount less than the allowable
maximum may amend the amount of the loan not
to exceed the allowable maximum if such
amendment is approved by the Community
Development Director.
Eligible Properties: Owner-occupied single-family detached residences
throughout the City.
Security: Recorded Trust Deed / Promissory Note.
Loan Rate and Term: 0% interest deferred loan payable upon sale,
transfer of title or refinancing of any loan in prior
position to that of the City; when the loan recipients
no longer occupy the property; or when the loan
recipients become owners of any other real
property.
Fees: All Fees associated with the loan such as PIRT Policy
and recordation fees shall be added to loan
principal. The combined total of the loan and fee
amounts shall not exceed the Maximum Loan
Amount.
Repeat Assistance: Owner Occupied Single-Family Properties – Repeat
assistance may be allowed for loans once every five
(5) years provided that the balance of all
outstanding deferred loans does not exceed
$45,000.
Equity The total indebtedness or all recorded liens may not
exceed ninety-five (95%) of the fair market value of
the home after rehabilitation.
Special Requirements: Home Improvement Program loans must be
recorded against the property in first or second
position only. Exceptions will be reviewed on a
case-by-case basis.
Eligible Improvements: Correction of hazardous structural conditions;
modifications necessary to provide reasonable
accommodations for persons with disabilities;
improvements to the overall exterior appearance of
the home; elimination of an appearance of blight;
correction of exterior code violations; energy-
efficient fixtures and system upgrades; and other
eligible exterior and interior improvements. See
Section V for a more detailed explanation of eligible
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and noneligible improvements, as well as the order
of priority for eligible improvements.
III. CONDOMINIUM HOME IMPROVEMENT LOANS
Eligible condominium owners may utilize assistance under the deferred loan
program. Repeat assistance will be allowed for loans once every five (5) years
provided that the balance of all outstanding loans may not exceed $30,000,
subject to the availability of PLHA funds. The City will offer the following home
improvement programs to assist low- and moderate-income households with
necessary improvements to their residences. Participation in the Condominium
Home Improvement Program is subject to the additional requirements described
in Sections IV through VII of these Program Guidelines.
Household Income Limit: 150% of area median household income.
Minimum Loan Amount: $5,000
Maximum Loan Amount:
• $20,000 – for eligible construction costs (labor and materials).
• Up to $2,000 additional – for actual costs of:
o Hazardous material testing and abatement (if applicable), and
o Title fees.
• If hazardous material abatement and title fees exceed $2,000, the excess will
be deducted from the $35,000 construction allowance.
Loan Amount Amendment: Applicants who initially elect to obtain a deferred
loan in an amount less than the allowable maximum
may amend the amount of the loan not to exceed
the allowable maximum if such amendment is
approved by the Community Development
Director.
Eligible Properties: Owner-occupied condominium residences
throughout the City.
Security: Recorded Trust Deed / Promissory Note.
Loan Rate and Term: 0% interest deferred loan payable upon sale,
transfer of title or refinancing of any loan in prior
position to that of the City; when the loan recipients
no longer occupy the property; or when the loan
recipients become owners of any other real
property.
Fees: All Fees associated with the loan such as PIRT Policy
and recordation fees shall be added to loan
principal. The combined total of the loan and fee
amounts shall not exceed the Maximum Loan
Amount.
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Repeat Assistance: Repeat assistance may be allowed for loans once
every five (5) years provided that the balance of all
outstanding deferred loans does not exceed
$30,000, subject to the availability of PLHA funds.
Equity The total indebtedness or all recorded liens may not
exceed ninety-five (95%) of the fair market value of
the home after rehabilitation.
Special Requirements: Home Improvement Program loans must be
recorded against the property in first or second
position only. Exceptions will be reviewed on a
case-by-case basis.
Eligible Improvements: Interior modifications necessary to provide
reasonable accommodations for persons with
disabilities; electrical, plumbing and mechanical
system repairs and replacement that are not the
responsibility of the HOA; window replacements;
energy-efficient fixtures and system upgrades; and
other interior improvements that are not the
responsibility of the HOA. See Section VI for a more
detailed explanation of eligible and noneligible
improvements, as well as the order of priority for
eligible improvements.
IV. APPLICATION SUBMITTAL PROCESS
A. Pre-Screening
Prior to preparing a Home Improvement Program deferred loan application,
prospective applicants are encouraged to first contact the City of Diamond
Bar Community Development Department to determine, to the extent
possible, if they meet basic eligibility requirements.
B. Interest List
The City will maintain a list of potential applicants interested in participation in
the HIP program. The interest list order shall be based on the chronological
date and time of initial contact, and shall be served on a first-come, first-
served basis.
C. Application
The Home Improvement Program Administrator will contact potential
applicants on the interest list in order as funding becomes available. After
verifying that the homeowner still meets the basic eligibility requirements, the
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HIP Program Administrator will forward an application. The application will
include the following materials:
1. General Qualifications and Conditions Form
2. Items Required for Submission List
3. Program Application
4. Lead Based Paint Pamphlet
5. Lead Based Paint Notification
6. Hazardous Materials Inspection Notice
7. Asbestos in Your Home Pamphlet
8. Confirmation of Receipt (Hazardous Materials Transmittals)
Completed applications and required supporting documents should be
submitted directly to the Community Development Department located at
Diamond Bar City Hall. Applications will be reviewed in the order in which
they are received.
V. ELIGIBILITY CRITERIA
A. Applicant Eligibility Requirements
For CDBG-funded loans, applicant eligibility is established by Federal Law set
forth in the Code of Federal Regulations 24CFR Part 5 and as interpreted by
LACDA. For PLHA-funded loans, applicant eligibility is established by the
California Department of Housing and Community Development (HCD) PLHA
Guidelines. The City will require documentation of both household size and
household income information in order to determine applicant eligibility.
1. Proof of Citizenship or Eligible Immigration Status
Applicants must provide satisfactory evidence of U.S. citizenship or
legal immigration status as a condition of eligibility for the Home
Improvement Program. Acceptable documentation includes, but is not
limited to, a U.S. passport, U.S. birth certificate, certificate of
naturalization, lawful permanent resident card, or other documentation
deemed acceptable under federal housing program requirements. The
City shall require applicants to submit copies of such documentation as
part of the loan application process. Failure to provide satisfactory
evidence of citizenship or eligible immigration status shall result in denial
of program assistance.
2. Household Income
a. CDBG-Funded Loans: Adjusted gross annual household income
may not exceed the Los Angeles County CDBG Moderate Income
limits published by HUD.
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b. PLHA-Funded Loans: Adjusted gross annual household income may
not exceed 150% of Los Angeles County AMI adjusted for family size
as provided by HCD. This income limit is based on HCD’s
determination that the HIP promotes the rehabilitation and
preservation of ownership housing’s classification as an Eligible
Activity pursuant to HCD’s 2019 PLHA Final Guidelines.1
c. Definition of Household: For the purposes of determining Program
eligibility, “household” means a person or persons occupying a
dwelling unit as the principal place of residence.
d. Definition of Annual Income: For the purposes of determining
Program eligibility, annual income shall be defined as the total
household income received from all sources by an individual or
family, including the head of household, spouse, and each
additional adult member of the household who has earned or
received income during a 12-month period prior to their application
for services.
3. Income Subject to Review
Income determinations are subject to the submission and verification
requirements of the City of Diamond Bar, and are subject to changes
based on the programmatic requirements of LACDA and the CDBG
Program.
The City of Diamond Bar will make the final decision in situations where
the classification of income is disputed.
Failure to disclose or adequately document all sources of income will
result in an automatic denial of the application for assistance.
Reported income must include, but not be limited to, the following:
a. Personal Service Income, including the full amount of all earnings,
before any payroll deductions of wages and/or salaries, overtime
pay, commissions, fees, tips, bonuses, and other compensation for
personal services.
b. Business or Professional Service Income, including net income from
the operation of a business or profession. Expenditures for business
expansion or amortization of capital indebtedness must not be
used as deductions in determining net income. Any withdrawal of
cash or assets from the operation of a business or profession will be
considered income, except to the extent the withdrawal is a
reimbursement of cash or assets invested in the operation by the
1 Section 301(a)(2) of HCD’s 2019 PLHA Final Guidelines states that Eligible Activities include “(t)he predevelopment,
development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing …that meets the
needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high -cost areas.”
Home Improvement Program Policies | September 16, 2025 Page 8 of 19
family. An allowance for depreciation of assets used in a business
or profession may be deducted, based on straight-line
depreciation as provided in Internal Revenue Service regulations.
c. Interest and Dividend Income, including interest, dividends, and
other net income of any kind from real or personal property.
Expenditures for amortization of capital indebtedness shall not be
used as a deduction in determining net income. An allowance for
depreciation is permitted only as authorized in Section 2, above.
Any withdrawal of cash or assets from an investment will be
included as part of net income, except to the extent the
withdrawal is reimbursement of cash or assets invested by the
family. Where the family has net family assets in excess of $5,000,
annual income shall include the greater of the actual income
derived from all net family assets or a percentage of the value of
such assets based on the current passbook savings rates as
determined by HUD.
d. Payments in Lieu of Earnings, such as unemployment and disability
compensation, worker's compensation and severance pay (except
for lump-sum payments described in Income Exempt from Review -
Section 2, [Income Exempt from Review] below).
e. Periodic Payments, including the full amount of periodic payments
received from social security, annuities, insurance policies,
retirement, pensions, disability or death benefits and other similar
types of periodic receipts, including a lump-sum payment for the
delayed start of a periodic payment.
f. Periodic and Determinable Allowance, such as alimony and child
support payments, and regular contributions of gifts received from
persons not residing in the dwelling.
g. Welfare Assistance, including the amount of welfare allowance or
grant, but excluding any funds specifically designed for shelter and
utilities that are subject to adjustment by the welfare assistance
agency (in accordance with the actual cost of shelter and utilities).
h. Armed Forces Income, including all regular pay, special pay and
allowances of a member of the Armed Forces (but exempting
armed forces special pay described in Income Exempt from
Review - Section 6, [Income Exempt from Review] below).
i. Tax Credits, including any earned income tax credit to the extent it
exceeds income tax liability.
4. Income Exempt from Review
The calculation of annual income shall not include the following:
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a. Income from Children, including income from the employment of
children (including foster children) under the age of 18 years, or
payments received for the care of foster children.
b. Lump-Sum Payments, including additions to family assets, such as
inheritances, insurance payments (e.g., health and accident
insurance, and worker's compensation), capital gains and
settlement for personal or property losses (see Income Eligible for
Review - Sections 4 and 5, [Income Eligible for Review] above, for
income that should be included).
c. Reimbursement for Medical Costs, including all payments received
by the family that are specifically for or in reimbursement of
medical expenses for any family member.
d. Live-in Aide Income, including the income of a live-in aide
employed because of a medical condition of a family member.
e. Education Payments, including educational scholarships paid
directly to the student or to the educational institution, and
Government funds paid to a veteran for tuition fees, books,
equipment, materials, supplies, transportation and miscellaneous
personal expenses of the student. Any amount of such scholarship
or payment to a veteran not used for the above purposes that is
available for subsistence is to be included in income.
f. Armed Forces (Special Pay), special pay to a family member
serving in the Armed Forces, exposed to hostile fire.
g. Government Program Payments, including the following:
(1) HUD Funded: Amounts received under training programs
funded by HUD.
(2) Disabled Person Income: Amounts received by a disabled
person that are disregarded for a limited time for purposes of
Supplemental Security Income (SSI) eligibility and benefits,
because they are set aside for use under a Plan to Attain Self-
Sufficiency (PASS).
(3) Public Program Assistance: Amount received by a participant
in other publicly-assisted programs, which are specifically for
or in reimbursement of out-of-pocket expenses incurred
(special equipment, clothing, transportation, child care, etc.)
and made solely to allow participation in a specific program.
(4) Federal Statue Exempt Income: Amounts specifically
excluded by any other Federal statue from consideration as
income for purposes of determining eligibility or benefits under
a category of assistance programs that includes assistance
under the U.S. Housing Act of 1937.
h. Temporary Income, considered temporary, nonrecurring or
sporadic in nature (including gifts).
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5. Ownership of Real Property other than Primary Residence
Ownership of rental property or other real estate holdings other than
the owner’s primary residence is prohibited and will result in the
rejection of an application for assistance.
B. Property Eligibility Requirements
In accordance with the requirements of Section IV.A. (Applicant Eligibility
Requirements) above, following determination of homeowner eligibility, the
owner must demonstrate property eligibility. To be eligible to receive
program assistance, real property will be evaluated and must meet each of
the requirements set forth below:
1. Location and Type of Property
The property must be located within the corporate boundaries of the
City of Diamond Bar, and consist of one of the following two
development types:
a. A legally-recorded parcel with one detached single-family dwelling.
b. A condominium unit located within a common-interest subdivision.
2. Condition
a. Single-Family Detached dwellings: The property must be in need of
repairs to (i) correct existing nonconforming development
standards, (ii) correct existing nonconforming local and/or state
code requirements, (iii) correct existing local and/or state code
violations, (iv) protect the structural integrity of the dwelling, (v)
promote neighborhood preservation and safety, (vi) refurbish
exterior and/or eligible interior improvements (necessary for health
and safety), or (vii) aid the mobility of the physically disabled and/or
elderly. All repairs must qualify as eligible repairs as defined in
Section V and as may be approved by LACDA.
b. Condominiums: Eligible repairs to the dwelling unit, including its
attached garage, are limited to those that fall within the sole
maintenance responsibilities of its owner, and are necessary for
health, safety and decent living conditions. Repairs or
maintenance to portions of the structure that are the responsibility
of the HOA (e.g., roofing, stucco, exterior stairs, centralized water
heating, etc.) do not qualify for CHIP funding.
Note: Existing City code violations that represent health and safety or
hazardous conditions may be resolved using Home Improvement
Program (HIP) funds. Any noneligible code violations must be resolved
by the homeowner.
3. Ownership and Owner-Occupancy Requirements
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The income eligible homeowner(s) must hold record fee simple title to
the property, and must occupy the property as a principal residence.
The City will not approve home improvement projects for homes listed
for sale.
4. Length of Ownership
The income eligible homeowner(s) must have owned the eligible
property for a minimum of one (1) year at the time of application.
5. Equity
The total indebtedness of all recorded liens, including the City’s Home
Improvement Program loan, may not exceed ninety-five percent (95%)
of the fair market value of the home after rehabilitation. For the
purposes of this calculation, encumbrances must include the proposed
principal amount of the Program loan requested by the eligible owner.
6. Hazard Insurance
All properties must be insured with an all-risk property insurance policy
in an amount equal to the full replacement value of all structures
located on the property. Furthermore, all properties located within the
100-year floodplain that receive assistance under the Program must
maintain flood insurance in the amount of the improvements for the
term of the loan. For condominiums, this requirement may be satisfied
by a combination of individual and HOA insurance policies.
7. Property/Income Tax Delinquency or Liens
All property taxes and assessments must be paid current, and the
property must not have any recorded property or income tax liens.
8. Outstanding Judgments and Obligations
All outstanding mortgages recorded against the subject property must
be current. Furthermore, outstanding tax liens, mechanics liens and/or
judgments recorded against the property to be rehabilitated must be
paid prior to participating in the program unless waived by the Home
Improvement Screening Committee.
9. HOA Approval
For improvements requiring HOA approval (such as window and door
replacements), the homeowner shall apply for and obtain such
approval, and provide the City with proof of approval prior to
Screening Committee review.
VI. ELIGIBLE & NONELIGIBLE IMPROVEMENTS
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A. Order of Priorities for Eligible Improvements
The following order of priorities will apply to all eligible improvements made
using the City’s Home Improvement Program funds. All improvements listed
within any given priority category must be addressed prior to the inclusion of
items identified as having a lower priority.
1. Mandatory Improvements: Mandatory improvements including those
needed to alleviate conditions that present an immediate threat to the
health and safety of the property’s occupants and those needed to
correct existing hazardous building, zoning and public nuisance code
violations.
2. Exterior Improvements: Improvements needed to repair or replace
hazardous, broken, damaged and/or deteriorated elements of the
main dwelling.
3. Lead Based Paint Improvements: Lead based paint improvements as
required by the U.S. Department of Housing and Urban Development.
B. Eligible Improvements
All eligible improvements must be physically located on the subject property
or be permanently attached to the subject dwelling unit. Following an
inspection of the subject property in accordance with Program requirements,
the City’s Screening Committee must approve: 1) applicant eligibility; and 2)
the scope, type and nature of the proposed improvements. All eligible
rehabilitation work must be accomplished by qualified, licensed, and insured
contractors selected in accordance with Program Implementation
Procedures.
The City’s Home Improvement Program is designed to provide for the repair,
and if necessary, the replacement of hazardous, damaged, deteriorated or
failing items located on an eligible property. In the event that the
replacement of damaged, deteriorated or failing items is necessary, the
replacement items shall be in-kind or like-priced material. Luxury quality
items will not be used in making necessary repairs. The program is not
designed to provide for the upgrade of dwellings. Some eligible
improvements are subject to material allowances. A description of all
applicable cost allowances will be provided to the applicant if requested. A
listing and description of all eligible improvements, including item-specific
restrictions (if applicable) is provided below:
1. Abatement of Code Violations: All work including but not limited to
demolition, construction, rehabilitation, replacement (subject to
program restrictions), and installation needed to abate hazardous
violations of the City codes.
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2. Accessibility Modifications: All modifications, alterations, or additions
necessary to facilitate access and use of the dwelling by disabled
persons are permitted. These may include the installation of handicap
ramps, grab bars, and accessible shower enclosures; the modification
of doorways, hallways, countertop elevations; and other adaptive
measures.
3. Deadbolt Locks: Installation of single cylinder deadbolt locks is required
on all entry doors.
4. Doors/Windows/Screens: Repair and replacement of worn or damaged
exterior doors, windows, or screens is permitted with those of similar type
and/or quality. Enlargement of door/window openings is permitted
only where the existing door/window area is non-compliant with current
building codes, and only to the extent needed to achieve building
code compliance.
5. Electrical: Repair and upgrading of electrical system, if required by the
current adopted Electrical Code, including service panels, wiring,
outlets, and switches.
6. Energy Conservation: Installation or replacement of insulation, weather
stripping, water heater, and attic ventilators. Installation of energy
efficient doors and windows is allowable provided that the conditions
outlined under Doors/Windows are met. Other energy conservation
measures or equipment as may be approved by the LACDA may be
installed.
7. Garage Doors: The repair or replacement of garage doors, including
the replacement of inoperable garage door openers and broken
springs is eligible, provided that the repair is incidental to the overall
cost of rehabilitation to the property.
8. HVAC Systems: Repair or replacement of failed, failing, damaged or
inoperative existing integral HVAC system components including
furnaces, air conditioning compressors, forced air units, heat pumps,
ducts and vents is permitted. The installation of new air conditioning
equipment is not permitted except in cases where medically necessary
as prescribed by a doctor. The installation or repair of window air
conditioners is not permitted.
9. Rear or Side-Yard Slope Landscaping (as a hazardous soil erosion
mitigation measure): The replacement of dead sod, trees, shrubs and
ground cover (other than sod) is permitted on rear and side-yard slopes
having an incline of at least 10:1. The subject yard areas must be
adjacent to or visible from public rights-of-way. The scope and nature
of the permitted slope landscaping will be only that necessary to
eliminate the hazard and meet minimum municipal code requirements
provided that the cost for such improvements does not exceed $500.
Home Improvement Program Policies | September 16, 2025 Page 14 of 19
10. Overgrown/Dead Vegetation: Only the trimming of overgrown
vegetation and the removal of dead vegetation that is documented
as a hazardous condition or an impediment to the rehabilitation activity
is permitted. Dead vegetation, other than sod, that is removed may
not be replaced.
11. Painting (exterior): Exterior painting is eligible and must be undertaken if
the current condition represents a violation of adopted Codes as
determined by the City. All painting must comply with the Lead Based
Paint requirements of the U.S. Department of Housing and Urban
Development.
12. Termite/Pest Control: Eradication of insect infestations and repairs to
elements of the dwelling damaged by insect infestation is permitted.
13. Plastering, siding, and stucco: Repairs (e.g. patching, filling or localized
replacement) to damaged plaster, stucco or siding is permitted.
14. Plumbing/Sewer Pipes and Fixtures: Repair or replacement of leaking or
damaged water/sewer pipes and fixtures (including toilets, bathtubs,
shower enclosures, faucets and garbage disposals) is permitted only to
the extent necessary to address health and safety considerations.
15. Property Clean-up: The removal of overgrown vegetation, trash and
debris located on the subject property is permitted only when
necessary to eliminate documented hazardous or health and safety
conditions, or when incidentally required for the performance of other
rehabilitation activities. Removal of excessive debris and trash from the
inside of the home is permitted only where the homeowner(s) is/are
physically incapable of completing such work and when necessary to
eliminate hazardous conditions. Appropriate documentation of these
circumstances must be maintained in the project file. Applicants shall
sell, donate, or arrange for removal by a licensed and bonded salvage
company, any inoperative vehicle that is not stored within an enclosed
garage.
16. Roofing: Complete repair or replacement of deteriorated or damaged
roofing of the main dwelling is permitted. Materials of the same type
and quality as the existing roof must be used (i.e. composition shingle
must be replaced by composition shingle) except where 1) different
roofing materials are needed to match the type and quality of roofs
found on a majority of homes in the immediate neighborhood, or 2) if
the existing roof is made of wood shake a light weight tile roof may be
installed to meet code requirements. Roof replacements that require
an engineering survey or engineered structural modifications are not
permitted. The repair or replacement of patio roofs is not permitted.
17. Smoke Detectors: Smoke detectors must be installed throughout the
home as required by adopted building codes.
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18. Ground-Fault Circuit-Interrupter Protection (GFCI): GFCIs must be
installed in all locations as required under the California Electrical Code.
19. Structural Repairs/Modifications: Structural repairs/modifications are
permitted to the extent that such repairs/modifications 1) correct
existing structural deficiencies as defined by the California Building
Code; and/or 2) provide accessibility for disabled persons.
20. Water Heaters: Repair or replacement of deteriorated or inoperable
water heaters including the repair or installation of enclosures, insulation
blankets, earthquake strapping and/or pressure release valves is
permitted.
21. Lead Based Paint (LBP) Testing and Treatment/Abatement: The
performance of required LBP testing and clearance, and the treatment
and/or abatement of lead-based paint are permitted.
22. Asbestos Testing and Abatement: The performance of required
Asbestos testing, and the abatement of asbestos hazards is permitted.
C. Noneligible Improvements
1. Common-Interest Portions of Buildings: Structural, mechanical,
electrical and plumbing systems, including those listed in Section V.B.
above, that fall within the repair and maintenance responsibilities of the
HOA are noneligible for funding.
2. Accessory Buildings and Structures: Rehabilitation to areas not
considered in the square footage of a housing unit is generally
considered a noneligible HIP rehabilitation activity. Rehabilitation of
accessory buildings and structures including but not limited to: patios,
enclosed patios, decks, porches, sheds, greenhouses, barbecue pits,
outdoor fireplaces, bathhouses, swimming pools, saunas, hot tubs, and
similar buildings or structures is a noneligible activity. However, if a
hazardous condition exists in one of the aforementioned areas, the City
may use HIP funds to demolish the structure. Such hazardous condition
must be remedied prior to the commencement of any eligible
rehabilitation work.
3. Accessory Dwelling Units (ADUs): The HIP program shall not be used to
rehabilitate ADUs of any type, including, but not limited to, attached
ADUs, detached ADUs and Junior ADUs (i.e., ADUs located within the
walls of the main dwelling, garage or accessory structure).
4. Non-Permanent Attachments: The removal, replacement or
rehabilitation of valances, cornice boards, drapes, blinds, and indoor or
outdoor furnishings is a noneligible activity;
Home Improvement Program Policies | September 16, 2025 Page 16 of 19
5. Unauthorized Improvements: Any rehabilitation activity not approved
by the City is noneligible.
VII. ELIGIBLE & NONELIGIBLE COSTS
A. Eligible Costs
Home Improvement Program funds may only be used for the actual
reasonable cost of materials and services necessary to complete all
rehabilitation work approved by the City as set forth in the approved Scope
of Work, and additional costs, as follows:
1. Permits: Building permits and inspection and other related fees
necessary for the completion of the approved rehabilitation work;
2. Processing Costs: Costs of loan processing, including without limitation,
credit reports, property appraisals, and if necessary, preliminary title
reports and recording fees.
B. Noneligible Costs.
Specific costs not eligible for payment under the Home Improvement
Program include, but are not limited to the following:
1. Luxury Materials: Materials, fixtures, or equipment of a type or quality
that exceeds that customarily used in properties of the same general
use as the property to be rehabilitated;
2. Furnishings: Purchase, installation or repair of interior or exterior home
furnishings;
3. Personal Labor Costs: Compensation/reimbursement of owner’s
personal labor;
4. Unauthorized Costs: Compensation/reimbursement for noneligible
improvements or any work not included and authorized in the City
approved Contractor Agreement or subsequent City approved
change orders.
5. Prior Work Costs: Any repair work not listed as eligible in this Program
and any work contractually entered into prior to approval by the City.
VIII. TERMS AND CONDITIONS OF PROGRAM ASSISTANCE
A. Continued Owner-Occupancy Requirement
The loan recipient shall maintain the assisted property as their principal place
of residence for the full term of the loan. At no time during the term of the
loan shall the property be rented, leased, or otherwise occupied by persons
other than the loan recipient and their immediate household.
Home Improvement Program Policies | September 16, 2025 Page 17 of 19
To ensure compliance, loan recipients shall submit to the City, on an annual
basis, a sworn affidavit attesting that the property remains their principal
residence. This self-certification shall be in a form prescribed by the City and
must be received by the City no later than the anniversary date of the loan
agreement each year. The City reserves the right to verify owner-occupancy
through additional means, and the affidavit shall not be construed as
conclusive proof of compliance.
Failure to (i) maintain the property as an owner-occupied residence, or (ii)
timely provide the required annual affidavit, shall constitute a default under
the Program and shall result in the loan becoming immediately due and
payable in full.
B. Maintenance/Occupancy Requirements
Assisted properties shall be maintained in compliance with the Diamond Bar
City Code. Assisted properties shall maintain occupancy not to exceed the
maximum occupancy limits as established by HUD. Property owners shall not
permit criminal activities to occur on the property; permit property
improvements to suffer deterioration or decline; or maintain, cause or permit
to be maintained, any public nuisance on the subject property. Failure to
adhere to these terms and conditions shall be grounds for the City to
demand immediate repayment of the HIP loan.
C. Hazard Insurance
Property owners receiving HIP Program loan assistance shall maintain,
throughout the term of the loan, an all-risk property insurance policy,
including flood insurance if the property is located in a flood zone, insuring
the property in an amount equal to the full replacement value of the
structures on the property. The insurance policy or policies shall name the
City of Diamond Bar as an additionally insured/loss payee. Documentation
shall be provided in a manner approved by the City Attorney.
D. Nondiscrimination
There shall be no discrimination against or segregation of any person or group
of persons in accordance with Executive Order 11246, Title VI of the Civil
Rights Act of 1964, Section 109, Title I of the Housing and Community
Development Act of 1974, Age Discrimination Act of 1975, and Section 504 of
the Rehabilitation Act of 1973, in the selection of contractors or
subcontractors to complete the rehabilitation work financed with Program
assistance, or in the sale, leasing, transferring, use, occupancy, tenure, or
enjoyment of assisted properties.
Home Improvement Program Policies | September 16, 2025 Page 18 of 19
E. Compliance with Program Policies and Procedures
Throughout the applicable term of Program assistance, Program participants
shall comply with all Program requirements and procedures as set forth in
these Policies and Procedures and as required by the City and as set forth in
Grant and Loan agreements and related attachments. Any misstatements,
omissions, misrepresentations, deletions, falsifications, or other willful actions
taken by a Program participant to wrongfully obtain a CHIP or SHIP loan will
result in the immediate cancellation of the Program participant’s application,
and cause any disbursed funds to become immediately due and payable,
plus the interest that would have accrued from the date that the funds were
disbursed, at the market mortgage interest rate in effect on the date that the
funds were disbursed, and may cause further legal action to be taken, and
permanently disqualify the Program participant from the Diamond Bar Home
Improvement Program.
IX. GUIDELINE & COST AMENDMENT PROCEDURES
A. Amendment - Program Guidelines.
The Diamond Bar City Council must approve all amendments to these Home
Improvement Program Guidelines.
B. Emergency Project Funding Modification.
1. Health & Safety Discoveries: After the rehabilitation construction work
has commenced and the contractor discovers health and safety
problems, as defined by the California Building Codes, that were not
included in the initial Scope of Work the following procedures shall be
implemented:
a. The property owner may request that the Deferred Loan be
increased to cover the cost of the correction of health and safety
issues only; and
b. The contractor shall prepare a written Change Order Request
specifying the scope, nature and cost of the work necessary to
correct the unforeseen health and safety issues. In no event shall
the Change Order Request be of an amount that would cause the
total Deferred Loan to exceed the maximum amounts set forth in
Sections II and III.
c. The written Change Order Request shall be submitted to the
property owner for review and approval.
d. Upon receiving property owner approval, the City Project
Coordinator shall review the cost reasonableness of the proposed
changes. The City Project Coordinator must review the original
Scope of Work to determine if it can be modified in order to
provide the funds necessary to cover the cost of the remediation of
Home Improvement Program Policies | September 16, 2025 Page 19 of 19
the newly discovered health and safety issues. If costs are deemed
reasonable and if sufficient funding can be provided via
modification to existing contracted improvements, a formal
contract change order will be prepared and the required
signatures of the contractor and property owner shall be obtained.
e. If in the judgment of the City Project Coordinator the newly
identified health and safety issues are critical to maintaining the
habitability of the subject residence and the original Scope of Work
cannot be adequately modified to make available the funds
needed to cover the cost of the expanded scope of work, a
recommendation to increase the amount of the Deferred Loan
may be submitted to the City’s Home Improvement Screening
Committee for consideration. The total Deferred Loan amount,
with the Change Order added in, shall not exceed the maximum
amounts set forth in Sections II and III.
2. Screening Committee Review & Recommendation: The City of
Diamond Bar Home Improvement Screening Committee shall review
all facts relating to the property owner’s request for an increase in the
amount of the Deferred Loan. If in the judgment of the Screening
Committee an increase in the Deferred Loan is warranted, it may
recommend to the City Manager that the maximum amount of the
Deferred Loan be increased by an amount not to exceed $5,000
provided that it finds that all of the following circumstances apply:
a. Additional work is essential to return the subject rehabilitated
residence to a habitable condition and the original Scope of Work
cannot be modified to provide the funds needed to pay for the
cost of the newly identified health and safety issues; and
b. The property owner has or is willing to execute the necessary
documents to increase the amount of the Deferred Loan; and
c. The required additional work is the result of unforeseen
circumstances not apparent during the preparation of the initial
Scope of Work; and
d. The required additional work is required to address health and
safety issues; and
e. The property owner has provided written acknowledgement that
he or she shall assume the responsibility to pay for the cost of work
that exceeds the amount of rehabilitation assistance provided by
the City.
X. AUTHORITY TO ADMINISTER
The City Manager or their designee shall have the authority to administer this
Home Improvement Program inclusive of the establishment, maintenance and
Home Improvement Program Policies | September 16, 2025 Page 20 of 19
modification of appropriate implementation procedures. All program legal
documents shall be approved as to form by the City Attorney prior to use.
APPENDIX A
Certification of Continued
Owner-Occupancy
APPENDIX A
CITY OF DIAMOND BAR
HOME IMPROVEMENT PROGRAM
CERTIFICATION OF CONTINUED OWNER-OCCUPANCY
I/We, the undersigned, declare as follows:
1. I/We am/are the owner(s) of the real property commonly known as:
________________________________________________________________________
(Street Address, City, State, Zip Code)
2. I/We certify that the above-referenced property is my/our principal place of
residence and that I/we continue to occupy the property as an owner-occupant in
compliance with the City of Diamond Bar Home Improvement Program loan
requirements.
3. I/We understand that submission of this annual certification is required as a condition
of continued loan compliance, and that failure to submit this certification, or to
maintain the property as an owner-occupied principal residence, constitutes a
default under the Program.
4. I/We acknowledge that the City of Diamond Bar reserves the right to verify owner-
occupancy by independent means, and that this affidavit does not limit the City’s
authority to conduct such verification.
Executed on this ____ day of ________________, 20____, at Diamond Bar, California.
I/We declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
Printed Name:
Signature:
Daytime Phone Number:
Email Address:
Printed Name:
Signature:
Daytime Phone Number:
Email Address:
APPENDIX B
CDBG Deed of Trust Template
APPENDIX B
APPENDIX B
APPENDIX B
APPENDIX B
APPENDIX C
PLHA Deed of Trust Template
Single-Family Residence
(detached home on individual lot)
APPENDIX C
APPENDIX C
APPENDIX C
APPENDIX C
APPENDIX D
PLHA Deed of Trust Template
for Condominiums
APPENDIX D
APPENDIX D
APPENDIX D
APPENDIX D
APPENDIX D