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Commissioners were advised that the City contracts with Habitat for Humanity (Habitat) to administer the Housing Rehab Program and they have been responsible for coordinating, directing, and managing the Program since October 2016. Anitra Winder and Jen Gray with Habitat for Humanity advised Commissioners that since taking over administration of the Program 37 applications have been processed. Since May 2019 however, only 6 projects have been completed despite efforts to ensure successful administration. They discussed the challenges of finding qualified applicants, difficulties assessing applicant eligibility, incomplete applications and income -related documentation, and withdrawal of applications due to applicant inactivity. Staff and Habitat representatives informed Commissioners that loans were hard to sell because applicants do not want to obtain loans that carry a 3% simple annualized interest for a 30 -year term. Commissioners were asked to consider Options for the future of the Housing Rehabilitation Program that included: Incorporate Renew AC Program Policies that would: a) increase the maximum loan amount from $35,000 to the Renew AC loan limit of $150,000, and b) restructure the Housing Rehab loan to align with Renew AC loan terms that include a simple interest rate of 1% accrued annually with interest total never exceeding 50% of the principal amount borrowed and the loan does not require payments for a term of 30 years. A newly restructured Housing Rehab loan could make the loan option more appealing to Pleasanton homeowners. 2. Modify Asset Limits Policies that would: direct City staff to evaluate omitting assets from income calculation and implementing asset limit caps. Modifying how assets are calculated as income could make the Program qualification easier. Furthermore, in order to ensure equitability in the Program, "asset cap" limits could be implemented. Renew AC requires eligible applicants to have no more than $150,000 in assets. 3. Extend Program Eligibility to Renters that would: direct City staff to design the Housing Rehab program to provide Pleasanton renters the opportunity to also benefit from the Program. The current Program is only targeted to "income -qualified homeowner - occupants". The City could consider adopting a policy similar to that of the City of Fremont that provides financial and technical assistance to renters who are disabled or elderly and income eligible. 4. Other Consideration that would: eliminate the requirement for applicants who are requesting Housing Rehab Program grant funds, to provide proof of current homeowner's insurance policy. Many low-income applicants can't afford homeowner's insurance; however, homeowner's insurance would still be required from loan applicants in order for the City to secure these loans. Commissioner Kiziloglu questioned whether funds could be used for ADU's and whether these units would be used as lower-income housing units for the City. She was also concerned that funds could be used in an improper way. Mr. Hernandez advised that they could be used to bring a property up -to -code and specific requirements that would need to be met. Mr. Dolan indicated that staff would need to check on whether the units could be included as lower-income housing for the City of Pleasanton. Commissioner Welsh commented on the contract between the City of Pleasanton and Habitat Page - 3 -