SAN DIEGO -- Hundreds of San Diego homeowners are taking advantage of a unique program that provides them with funds to fix their houses, 10News reported.

Michael Fleming has lived in his San Ysidro home for almost 40 years, but his home has been around since World War II. He has spent about $30,000 fixing up his home, with the money loaned to him by the city of San Diego through its Housing Enhancement Program.

The program gives homeowners living in redevelopment areas between $5,000 and $30,000 to fix their houses, inside or out. "Oh, they put a brand new hot water heater system in, too," said Fleming.

Homeowners do not have to repay the loan if they stay in their home for at least 10 more years. "It is essentially like free money -- the loan is forgiven," said community development coordinator Jim Davies.

If homeowners leave early, they pay the loan back at 3-percent interest.

The city has budgeted about $1.8 million for the program and it hopes to make it back by encouraging homeowners to spruce up their properties.

"It will show in re-sales of properties and will be reflected in property tax revenue," said Davies. "All the neighbors up and down the street have made positive comments about the improvements," said Fleming. Home improvements might be harder for some homeowners to make in the future because the state is trying to take some of San Diego's redevelopment money to balance its own budget.

"Right now, we're OK, but moving forward we may be challenged because more monies may be shifted to the state," said Davies.

Fleming said he is happy he got into the program when he did. When his home was built in the 1940s, the owner was told it was one of San Ysidro's best. Now, it is making a comeback. "I don't know about that but it sure looks a lot better than it did," said Fleming.

There are income restrictions with the program, according to city officials.