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a. Higher Maximum Income Limits. The City's DPA Program currently requires eligible households to earn no more than 80% AMI or no more than 120% AMI. The City and County of San Francisco Downpayment Assistance Loan Program (DALP), on the other hand, requires that household income not exceed 175% AMI. With the higher price points for Pleasanton homes, potential homebuyers are being required to have higher disposable incomes. Area Median Income (AMI) Household Income (4 -person Household) 80% (low-income) $89,600 120% (moderate -income) $139,450 175% $207,200 While increasing the maximum income limit threshold may be necessary and beneficial, this modification would require formally amending the current 120% AMI maximum income limit restriction for affordable housing -related programs funded with the City's Lower Income Housing Fund (LIHF), which is currently the funding source for the DPA Program. b. Higher Debt -To -Income Ratio. The County of Santa Clara Down Payment Assistance Program allows potential borrowers to have a debt -to -income (DTI) ratio, which includes the monthly housing payment, up to 45% of the gross monthly income. The City's DPA Program currently has a DTI ratio limit of 40%. While it's crucial that borrowers have the lowest DTI, as this demonstrates that they have housing mortgage payments that are manageable, a slightly higher DTI ratio does allow borrowers to potentially increase their price points, which could potentially unlock more housing inventory units that previously were considered to be "out of reach". 3. Leverage the AC Boost financial assistance. Under this option, City staff would collaborate with Hello Housing staff to determine how to most effectively and efficiently leverage the AC Boost financial assistance and supplement it with the DPA loan. The high price points in Pleasanton may require hopeful borrowers to have to utilize both the AC Boost and the DPA Program just to have the required down payment to enter the Pleasanton housing market. While the DPA loan amount to be provided would still need to be determined, the DPA loan terms would be recommended to mirror how the AC Boost loan is structured. Page-4-