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power, and consequently, staff is recommending a new maximum loan amount of $100,000 for eligible households earning no more than 120% AMI, the 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. Staff is projecting that there would be a noticeable increase in the number of households applying for and actually benefitting from the higher maximum DPA loan amount. 2. Restructure the DPA loan to a "Deferred Payment Loan". The DPA loan terms would be restructured from a 20-year/3.5% interest rate loan with required monthly repayments to a 30-year/0% interest loan with no required monthly payment so long as the buyer occupies the home. The restructured DPA loan defers repayment until the earliest of the end of the 30-year term or when the home is sold. Though the DPA loan is restructured to have 0% interest, there is a mechanism for not only recapturing the loan, but also gaining additional repayments based on the proportionate share of the increase in the home value. This is further discussed in the "Shared Appreciation Loan" described in section 3 below. The City is currently receiving nominal monthly repayment amounts from its existing DPA loan accounts. From January through December 2019, the City received a combined repayment amount of $32,761.61 (or an average monthly amount of$2,730.13) from twenty borrowers who are currently repaying their DPA loans. Staff anticipates that, although the repayments would now be deferred, the larger repayment amounts could better replenish the DPA Program funds in the future; which consequently, would be able to assist more prospective first time homebuyers in the future. As described in section 3 below, a borrower could provide $133,040 to fully repay a $100,000 DPA loan. 3. Adopt a "Shared Appreciation Loan". Pleasanton's DPA loan would be restructured to a "shared appreciation loan", similarly to the AC Boost (and City of Livermore) DPA loans. Under this loan structure, the loan is interest-free, and the payments are deferred with no monthly payment for 30 years (as described previously). The principal balance amount plus a share of the appreciation becomes due at the end of the 30-year term or when the homeowner sells or transfers the property. For example, if the borrower receives the DPA loan in the amount of$100,000 with a purchase price of $605,412, the loan amount is 16.52% of the purchase price. Therefore, the share of the appreciation would also be 16.52%. Page 3 of 6