Low-income homeowners could receive grants or zero-interest loans of up to $100,000 to rehabilitate their property if Auburn receives a grant.

The Auburn City Council authorized an application for $400,000 in state Community Development Block Grant funding at its meeting last week.

Residents who meet qualifications are being asked to submit their requests now.

But don’t expect the city to help you get your dream kitchen.

“This is for health and safety issues. Needed work — not for cosmetic work,” said Senior Planner Reg Murray with the City of Auburn. “If you want a new kitchen or something like that, this is not the right program for you.”

Homes with safety issues such as plumbing and electrical problems, leaky roofs and accessibility barriers could all be projects approved for funding.

It’s the first time the city has sought housing rehabilitation funding, Murray said. Other cities in California will be competing for the funds. Officials will know if the grant has been awarded by early fall.

Seeking the grant funding helps meet a goal in the city’s new housing element adopted in December, Murray said. The element, a guide that helps ensure housing needs are met for all income levels in the city, identified a need for such a housing rehabilitation program.

Murray said funding would be dispersed in one of three ways:

- Zero percent deferred payment loans of up to $100,000 (no repayment would be required until the property is sold or changes use);

- $7,500 grants for very low-income seniors and disabled households;

- Below market rate loans to property owners who rent to low-income households.

To qualify, residents must own and occupy their home and meet low income standards (income of $58,250 a year for a household of four; $46,600 for a household of two). Funds will be dispersed on a first-come, first served basis.

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How to apply

Although the city has no guarantee of receiving funding, a list of interested homeowners is being compiled in the event that the grant is approved.

If you are a low income, owner-occupant of a house in need of repairs, contact Lisa Hoffrogge at the City of Auburn at (530) 823-4211 ext. 122, or e-mail lhoffrogge@auburn.ca.gov and provide your name, address, phone number and type of repair work needed