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BACKGROUND <br /> The City maintains a Down Payment Assistance program to provide mortgage <br /> assistance to first time and lower income homebuyers that is modeled on CaIHFA <br /> guidelines related to its DPA program. The program is restricted to :he purchase of <br /> single-family residences which includes condominiums, mobile homes, town homes, <br /> and single units that are part of a couplet or duet. Multi unit structures (duplexes, <br /> triplexes, etc.) where more than one unit is being purchased are not eligible. Homes <br /> purchased must be located in the City of Pleasanton. The homebuyer is responsible for <br /> obtaining a first mortgage with a CaIHFA approved lender at a fixed interest rate with no <br /> negative amortization, balloon payment or adjustable rate features. Maximum loan <br /> amounts are determined by household size and income and by the source of loan <br /> funds. Historically, households with annual incomes up to 120% of the Area Median <br /> Income (AMI) are eligible for up to $60,000 in down payment assistance through a <br /> combination of HELP and City matching funds ($20,000 max from the City) to a <br /> maximum of 20% of the homes total purchase price. Notwithstanding the $60,000 loan <br /> limit, due to the fact that the DPA program's funding currently comes exclusively from <br /> the City, the currently maximum loan amount is $20,000. Loans are amortized over 20 <br /> years with an annual interest rate of 3.5%. <br /> Based on program guidelines, monthly loan payments are allocated to :he City's Lower <br /> Income Housing Fund. The HELP loans issued by CaIHFA to the City are due and <br /> payable in ten years and the loans are paid off with proceeds from the Lower Income <br /> Housing Fund. <br /> Since the depletion of the CaIHFA HELP funds in 2008, the City has continued to offer <br /> DPA loans using 100% local funding (through the Lower Income Housing Fund). Since <br /> late 2008, seven (7) additional DPA loans have been funded with an average loan <br /> amount of $20,000 per loan. While demand for the DPA program has vacillated with <br /> changes in the housing market, the program has continued to be a vailuable resource <br /> for first-time home buyers seeking ownership housing opportunities in Pleasanton. <br /> DISCUSSION <br /> The table below summarizes the current status of the two HELP loans that were used to <br /> fund the City's DPA program and the savings available through CaIHFA's early <br /> repayment program: <br /> Page 2 of 3 <br />