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However, with the high price points of the for sale homes in Pleasanton (the median sales price for a single-family detached home in Pleasanton in March 2019 is $1.265 million, per Bay East Association of Realtors), prospective Pleasantonian first time home buyers are not able to utilize the DPA Program. The maximum $20,000 loan simply is not enough to contribute to the industry requirement of at least 20% down payment, which would be more than $250,000 for a single-family detached home in Pleasanton. Even condominium or townhome units that have lower price points would presumably still require more than $150,000 in down payment to purchase an $800,000 unit. Options for the Future of the DPA Program Based on the lack of loans being issued, it seems appropriate to re-evaluate the DPA Program. To that end staff has identified the following general options for review and consideration: Evaluate Incorporating AC Boost Program Policies. Under this option, City staff would be directed to review the program policies of the Alameda County Down Payment Assistance Program (AC Boost) to determine whether they can replace and/or improve the existing program policies of the DPA Program. AC Boost, which is funded by the Measure Al Affordable Housing Bond, provides up to $150,000 in the form of a shared appreciation down payment assistance loan to buy a home in Alameda County. These policies include: a. Increase the maximum loan amount from $20,000 to the AC Boost loan limits. There are two different AC Boost loan limits based on the applicant's household income. Buyers earning less than 100% AMI (Area Median Income) have a loan limit of $150,000. Buyers earning between 100% and 120% AMI have a loan limit of $100,000. Additionally, the City of Livermore Mortgage Assistance Program (MAP) currently has a maximum loan amount of $60,000. An increase in the maximum loan amount increases a homebuyer's purchasing power. While increasing the loan amount could be helpful in providing a potential homebuyer the down payment amount necessary, providing larger loan amounts would significantly reduce the number of households that the DPA program would be able to assist. The City has a limited budget for these DPA loans, and the higher maximum loan amount would reduce the number of loans the City would be able to provide. b. Restructure the DPA loan to a "Deferred Payment Loan". The DPA loan is currently structured to be a loan with a 3.5% interest rate with a 20 -year maturity schedule. Compared to a 30 -year, 3.8% fixed rate mortgage loan in today's market, there is a high cost of assuming a DPA loan as a second mortgage loan due to the immediate repayment required and the shorter 20 -year term. Furthermore, this repayment increases the homebuyer's Debt -To -Income Page - 2 -