Homestead Program

The Homestead Program is not a low-income program. The program focus is on employed, entry-level professionals or recent hires (who fall within HCD's median to moderate income level) in search of quality housing in Clearlake. This is not a loan. The program intends to offset higher than normal construction costs by eliminating additional fees and land costs in order to facilitate new housing development for moderate income professionals and encourage job creation and retention efforts. Applicants will be responsible for obtaining financing for construction of a new stick built home or new manufactured or modular home. 

Acceptance into the Homestead Program is at the sole discretion of the Housing Committee. 

REQUIREMENTS:

• Income level must be classified as median to moderate income level, as defined each year by HCD (ranging from $49,000 for a one-person household to up to $112,000 for an eight-person household - **see table below**). This is structured in order to ensure applicant's financial ability to obtain financing, complete the project and perform long-term property maintenance. Please note: under the discretion of the Housing Committee, applicants with income $10,000 above or below the Moderate to Median income range may still be considered.

• Must be owner occupied for a minimum of two years from date of occupancy.

• Must have an existing job within Lake County or a verified employment offer. Local employment status can be met by verified telecommuting while living in Lake County at least 51% of the year.

• Have ability to obtain financing for construction of a new stick built home or manufactured home.

• Complete construction of a new stick built home or new manufactured or modular home within 12 months of the issuance of a building permit.

• Must enter into an agreement with the City of Clearlake to meet the program requirements in exchange for various subsidies. If program requirements are not met, the property will revert to the City or a lien will be placed on the property to recover the amount subsidized.

• Program participants must meet all local and state codes.

• Applications will be submitted to the City and reviewed and approved by the City Housing Committee, with the City Manager authorized to execute program documents.

The program participant will receive an approximate total value not to exceed $40,000 including:  

An existing City-owned lot which has been placed on the approved Homestead Program property list, or City funded purchase of an alternative property not to exceed $10,000. 

The City will also pay the following fees to each local agency after program application and building permits are approved: 

• Building Permit and Plan Check fees (up to 1,800 sq. ft./approx. $3,300)

• Development Impact Fees ($2,049)

• Lake County Special Districts Sewer Connection/capacity expansion fees (one connection/standard meter size/varies but approx. $11,485.) An equivalent amount may be provided to cover the costs of installing a septic system if municipal sewer is not available.

• Local Water District Connection/capacity expansion fees (one connection/standard meter size/varies but approx. $7,500.) An equivalent amount may be provided to cover the costs of installing a well if municipal water is not available.

• Local School District Fees (up to 1,800 sq. ft/approx. $6,822)

• Local Fire District Fees (up to 1,800 sq. ft/approx. $2,000)

• Priority review and approval of building plans by other local agencies.

• Free pre-approved building plans for different housing types/sizes.

**Before applying, check the chart below to see if your household qualifies as median to moderate income or falls $10,000 above or below your household income range**

Ready to apply? Click HERE.