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Incorporate Renew AC Program Policies. Under this option, City staff would be directed to review the program policies of the Renew Alameda County (Renew AC) to determine whether they can replace and/or improve the existing program policies of the Housing Rehab Program. Renew AC, with funding provided by Alameda County taxpayers who approved the Measure Al Housing Bond in November 2016, provides affordable, low- interest deferred payments loans that qualified homeowners can use for home improvement projects that help create safe and comfortable homes. These policies include: a. Increase the maximum loan amount from $35,000 to the Renew Ac loan limits. While the minimum amount of a Renew AC loan is $15,000, qualified homeowners may be eligible to receive up to a maximum loan of $150,000 depending on need. Increasing the maximum loan limit would allow homeowners to be able to address larger significant repairs, such as roof replacements, dry rot repairs, updating major mechanical systems, and/or repairing or replacing structural elements, at the same time. This would ensure that deficiencies related to health and safety are addressed and corrected as soon as possible. b. Restructure the Housing Rehab loan to align it with Renew AC loan terms. T The approved Housing Rehab loan, which has a 3% simple annualized interest for a 30 -year term, is currently structured as an amortized or deferred loan depending on the applicant's income relative to his/her housing costs. Amortized loans require monthly payments while deferred loans are due and payable in 30 years. The County's Renew AC loan terms, meanwhile, include a simple interest rate of 1 % accrued annually, with interest total never exceeding 50% of the principal amount borrowed. The loan does not require payments for a term of 30 years. Restructuring the current Housing Rehab loan to align it with the Renew AC loan terms entails: • Eliminating the amortized loan option • Reducing the simple interest rate from 3% to 1% • Capping the accrued interest owed to 50% of the loan A newly restructured Housing Rehab loan could make the loan option more appealing to Pleasanton homeowners. 2. Modify Asset Limits Policies. Under this option, City staff would be directed to evaluate omitting assets from income calculation and implementing asset limit caps. Currently, the Housing Rehab Program guidelines require the net family assets of applicants be included in the income calculation to determine eligibility. Page - 3 -