Process & Procedures
How to Start
Compare the number of people living in your house with the maximum income levels listed in the Eligible Income Levels table. You qualify if your income is equal to or below these levels, and you do not qualify if your income is above.
Eligible Income Levels
|Number of People||Maximum Household Income|
All owners of the property must submit an application for a residential rehab loan or grant. You will be provided with the number of applications required, based on the information provided in the initial phone interview. Call the Residential Rehabilitation Program of the City of Daly City at to discuss the types of repairs you need. Have your household income amount on hand as this information determines your eligibility for our programs. If you are eligible you will be sent an application package.
Supporting documentation consists of:
- Copies of your latest filed federal tax return (Internal Revenue Service Form 10-40)
- A credit authorization form
- Copies of various financial documents
The checklist provided will show exactly what documentation we'll need from you. We'll do the required credit checks and order a title search, and when the loan or grant has been tentatively approved, authorization to begin the work write-up will be given to the Rehabilitation Construction Inspector.
After your application is received it will be analyzed. Credit reports on all owners will be ordered and verified. If there are no problems with the credit reports, the Rehab Construction Inspector will contact you for a date/time to inspect the property. The Rehab Construction Inspector will coordinate an inspection date/time with the Termite Inspector.
Estimated Processing Time
- Paint Only Loans: 2 to 3 weeks
- Roof Only Loan: 2 to 3 weeks
- Security Grills Grant: 1 to 2 weeks
- Senior Minor Home Repair Grant is: 1 to 2 weeks
Homes 50 years old or more require State Historic Preservation Office review. Two pictures of the front and two pictures of the rear of the house will be taken at the time of the inspection. The pictures will be sent to The State Historic Preservation Office for review, this process adds about 35 days to the approval time for grants, roof and paint only loans.
Complete Rehab Loan
Processing for the Complete Rehab Loan is more involved, so you could be looking at a processing time of two months until loan closing. Estimated time for completion of the work is 60 to 90 days after loan closing depending on the scope of the work.
When we receive your application, we'll review it carefully. We'll order a credit report on all owners and, upon verifying that there are no credit problems, move ahead with scheduling a property inspection.
Our Rehabilitation Construction Inspector will contact you for a time and date to inspect your property. The Rehabilitation Construction Inspector will also coordinate an inspection time and date for the Termite Inspector.
After the property has been fully inspected, a report is prepared outlining the rehabilitation work that will be needed. Included in the report will be all code deficiencies that will need repairs.
We'll send you a copy of this report along with:
- An estimated cost for the rehabilitation work
- An inspection acceptance form
- A checklist of supporting documentation that we'll need from you
- An estimated loan amount and terms form for your review
If you wish to continue in the program, simply return the inspection acceptance form and submit the documentation required from the checklist.
The Work Write-Up outlines in detail the specifications of the repair work that must be done to your property. After preparation and review/approval by you, it is used as the basis for the contractors' bids.
There should be at least 2 to 3 bids from licensed general contractors to do your work. This can be accomplished two ways: we can provide several bid packages directly to you for bid solicitation, or we can notify the contractors on our bid list that there is a bid package available. These contractors are licensed general contractors who have applied to work on rehab projects. The City Rehab Program does not guarantee their work.
You will be provided with a list of contractors' names, addresses, phone numbers and license numbers. You are responsible to contact the State Contractors License Board and/or the Better Business Bureau (phone numbers are provided on the list) to satisfy yourself of their ability to do your job. All owners and the contractor will sign the construction contract. The City is not a party to this contract.
Contractors have 15 to 20 days to submit their bids. The Rehab Division reviews all bids for cost reasonableness. You pick the contractor you want to do your work from those who submitted bids. The actual loan amount will be based on the bid you accept.
Loan Papers / Construction Contract
After bid acceptance:
- We will commit to you the actual terms of the loan we can provide
- You will have 10 days to review all your documents and advise us of your acceptance of our commitment
- Once you accept the loan terms we will prepare the necessary loan and construction documents
- A pre-job conference and construction contract sign-up date/time will be set up for all owners and the contractor to attend
- Loan sign-up will immediately follow this pre-job conference
Once the three-business-day rescission period expires, your loan package will be delivered to the title company with instructions to record the deed of trust as soon as possible (usually the next working day). After the deed of trust is on record, the notice to proceed will be sent to your contractor and he/she has 15 calendar days within which to start the job.
Permits for the job must be obtained by your contractor prior to commencement of the work and only through the Rehab Division.
Work-in-Progress / Progress Payments
The Rehabilitation Construction Inspector will be on the job site the first day the job commences and will do several monitor visits while work is in progress. When the contractor is ready for each progress payment (generally 3 progress payments per job with a holdback of 10 to 20% to be released 35 days after work completion), an invoice must be submitted and an inspection done to determine if the quality and quantity of the finished work warrants a progress payment. All progress payment checks are made payable to all owners and the contractor.
When the job is completed a walk-through inspection is done with all owners, the contractor, and the Rehab Construction Inspector present. A punch-list is prepared and signed by all, outlining any work still needing attention. At this point a Notice of Completion is prepared, signed by one owner and recorded so that the time limit within which any mechanic's lien can be filed against the property is reduced.
After the 35 days holdback period the final check is released to the owners and the contractor and the owners are provided with a breakdown of disbursements of the loan funds.
Policy of Non-Discrimination
The City of Daly City does not discriminate on the basis of race, color, creed, religion, sex, marital status, sexual preference, national origin, ancestry, handicap or age in the admission or access to, or treatment or employment in, its programs and activities.