SR 06:060 - Laserfiche WebLink

requests for condo conversions, and "affordable by design" units. In addition, the Tri- Valley Housing Opportunity Center recently opened and will help promote the DP A program to people who might benefit from it to purchase a home. Staff has observed that one constraint that has limited use of the program is the restriction to firsHime buyers. This limitation prevents use of the program by owners of existing PHAP homes would like to "move up" but cannot because they still need assistance to purchase a market-rate home. If they were able to use the DP A program, it be possible for them to move and thereby free up their PHAP homes for purchase by other low- income households. Another potential interest group is people who moving to Pleasanton from other regions and may have owned a home previously but cannot afford local housing prices. Mr. Erickson noted that this is a policy question with several different options: I) keep the first-time buyer requirement in place, 2) adopt some "in between" option (e.g., allow existing PHAP owners to use the program), or 3) eliminate the first- time buyer requirement altogether. Mr. Erickson stated that CalFHA gives the City the latitude to set whatever guidelines we want for the program. Chairperson Stark indicated that he feels we should look at the 3% down payment required, specifically as it relates to the CalFHA products. It is his understanding that CalFHA products may waive to I % minimum. He has a problem with eliminating the firs-time buyer requirement. He feels there is appreciation everywhere. Chairperson Stark has concern regarding the flexibility to tailor the program to fit our needs. He is concerned if there are other regulatory things that we need to know about. Specifically because this is a redevelopment funded program and we need to ensure that the participants weren't paying more then 35% of their income on housing costs. Mr. Erickson replied that there are standards in the guidelines that address the ratio. Commissioner Hodgett asked if there were resale restrictions. Mr. Erickson replied that there are no resale restrictions with the DP A program. Ms. Hodgett stated that if she found an affordable condo (not a BMR unit) and she had this money she could purchase the unit. Mr. Erickson replied that she would enjoy the benefit of the market appreciation on that particular home and would pay back the loan. Ms. Hodgett asked about the length of term on the loan. Mr. Erickson replied that the way it is structured there is flexibility. However, the three loans that have been done to date were dually funded with one ten- year loan from CalFHA funds and a second deferred loan from City funds (with payments starting in year II). Steven Bocian commented that one of the issues driving this is the "middle class squeeze" where you find people whose needs are not addressed by any City assistance program. The DP A program may be able to assist a group of people to own a home without placing too much of a financial burden on the City. Page - 9 -