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applications or these applications remain incomplete as income -related documentation still need to be submitted. Habitat makes every effort to connect, engage, and keep contact with these applicants, but eventually these 7 applicants (nearly 1 out of 5 applicants) have been considered withdrawn or have been denied due to inactivity. 3. Applicants do not want to obtain loans that carry a 3 percent simple annualized interest with a 30 -year term. They only want grant funds that does not require repayment. These applicants simply chose to forego any services if they are unable to receive a grant. Proposed Changes to the Housing Rehabilitation Program Based on the Housing Commission's re-evaluation of the Housing Rehab Program at its June 20, 2019 meeting, staff is recommending the following proposed changes to the Housing Rehab Program that would ensure that more Pleasanton homeowners are able to benefit from the program. Staff is recommending that the Housing Rehab Program assimilate to the following program policies of Renew Alameda County (Renew AC), the county -wide housing rehabilitation loan program funded by the Measure Al Affordable Housing Bond. 1. Increase the maximum loan amount from $35,000 to $150,000. 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. 2. Restructure the Housing Rehab loan to align it with the Renew AC loan terms. The current 30-year/3 percent interest Housing Rehab loan is an amortized or a 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. Restructuring the Housing Rehab loan to align it with the Renew AC loan terms entails: • Eliminating the amortized loan option and deferring repayment for 30 years. • Reducing the simple interest rate from 3 percent to 1 percent. • Capping the accrued interest owed to 50 percent of the loan. A newly restructured Housing Rehab loan could make the loan option more appealing to Pleasanton homeowners. Page - 2 -