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Housing Grant and Loan Programs

The City of Carlsbad administers both grant and loan programs.  All programs follow the fair housing rights and responsibilities.  A description of each program is listed below.

The Minor Home Repair Program provides loans to homeowners of single family dwelling units with the following goals:

  • Maintain safe homes and attractive neighborhoods
  • Preserve and improve the quality of the housing stock
  • Assist seniors to age in-place or the disabled to remain in their home
  • Enhance the security of the home through the awarding of loans

To be eligible, homes must be owner-occupied single-family units and located within the city limits of the City of Carlsbad.

Assistance provided:

The maximum loan amount that a household may borrow under the Minor Home Repair Program is $5,000 maximum per unit.

All Minor Home Repair Program loans are zero percent interest deferred payment loans.  Each loan will have a five-year term.  The principal amount of the loans will be forgiven by 20 percent per year for each year that the home remains under the original ownership.  If the home is sold (or there is a transfer of ownership) prior to the expiration of the five-year term, the portion of the loan which has not yet been forgiven must be repaid at the time the home is sold or there is a change in ownership.  These loans are available to low income households who own and occupy their home as their primary residence.  Homes may not be rented during the five-year term of the Minor Home Repair Program loan.  There shall be only one loan of funds allowed per property in any five-year period.

Community Development Block Grant Program

The CDBG Program provides grants to cities and counties to develop viable urban communities through the provision of decent housing, a suitable living environment and by expanding economic opportunities for low and moderate income persons.

The amount is decided by:

  • Extent of poverty;
  • Population;
  • Housing over-crowding;
  • Age of housing;
  • Growth lag in relationship to other metropolitan areas.

Guidelines are set by individual cities and counties.  Priority is given to activities meeting at least one of the three broad national objectives for the program and at least one of the local community development objectives established by each city or county.

The city distributes a request for proposals notice in November each year to begin the application process for funding.



The San Diego Regional Mortgage Credit Certification Program 

The MCC helps you buy a home by:

  • Increasing the loan amount a home buyer qualifies for;
  • Entitling the home buyer to take a federal income tax credit of 20 percent of the annual interest paid on the mortgage used to buy the home;
  • Increasing buyer income and buyer ability to qualify for the mortgage plan;
  • Reducing the amount of federal income taxes paid to the federal government;
  • Providing a tax deduction that is subtracted from the adjusted gross income before federal income taxes are computed;
  • Allowing the home buyer to file a new W-4 form with his/her employer reflecting the MCC credit savings.  This increases the number of exemptions and reduces the amount of taxes withheld and increase the buyer's disposal income;
  • Allowing the home buyer to also wait until the end of the year and realize the tax credit savings in one lump sum when filing the federal income tax return.

Program requirements:

  • First time home buyers;
  • Home buyer cannot have ownership interest in a principal residence in the last three years;
  • Home buyer must occupy the home as a principal resident.

Eligible properties:

  • New or previously occupied single-family homes, including single-family detached homes, condominiums, half-plexes, owner occupied duplexes or townhouse in the cities of Carlsbad, Coronado, El Cajon, Encinitas, Escondido, Imperial Beach, La Mesa, Lemon Grove, National City, Poway, San Marcos, Santee, Vista and the unincorporated areas of San Diego;
  • Triplexes or four-plexes do not qualify as eligible structures for this program.

Steps to apply for an MCC:

  • Obtain list of participating lenders from the SDRMCCP Office, 619-469-0270
  • Apply for MCC when applying for a mortgage loan;
  • Buyer should have a purchase offer in hand and should be ready to supply credit information, employment data and other information for both the mortgage and the MCC applications;
  • Lenders work with borrowers on a first-come, first-served basis;
  • During the mortgage process, the lender submits a MCC application;
  • If eligible, the SDRMCCP provides a MCC commitment to the lender which reserves a MCC for that purchase transaction;
  • MCC is issued at close of escrow.

The MCC recapture tax

Recipients of MCC may be subject to recapture tax if they sell their residence within nine years.

The U.S. Department of Housing and Urban Development Home Investment Partnership Program provides grants to state and local agencies to use with local nonprofit groups to help create and maintain affordable housing for low income persons.  Eligible projects include the purchase, construction, or rehabilitation of affordable housing for rent or home ownership.

HOME funds are distributed to state and local governments according to a formula established to reflect the jurisdiction's need for an increased supply of affordable housing for low income families.  The City of Carlsbad receives HOME funds as a member of the San Diego County HOME Consortium.

Application and approval process

The City of Carlsbad issues a request for proposals through the local newspapers and notices to community organizations and city departments for projects or activities to be funded by the HOME Program.  They are evaluated based on the following criteria:

Organizational ability/capacity;

  • Financial capacity/stability;
  • Benefits and beneficiaries; and
  • Readiness to implement the proposal.

The city's CDBG/HOME Advisory Committee reviews proposals and provides funding recommendations for council consideration.  A public hearing is then held by the City Council to receive input on the needs of the lower income population.  The final step is council's approval of funding amounts for the project(s) selected for participation in the HOME Program for that year.


Please see One for One Replacement Plan 2013.


Contact Information

Housing & Neighborhood Services
760-720-2037 fax

1200 Carlsbad Village Drive
Carlsbad, CA  92008
Get directions

General Information

Business hours
Monday - Thursday
7:30 a.m. - 5:30 p.m.
8 a.m. - 5 p.m.