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Sample: Original Purchase Price $605,412 DPA Loan Amount $100,000 Shared Appreciation 16.52% Proposed Sale Price $805,412 Amount Appreciated $200,000 DPA Shared Appreciation $33,040, Estimated 1st Mortgage Pay Off $370,760* (4.75% interest on a 30-year loan) DPA Loan Due $133,040 Estimated Total Pay Off $503,800 Estimated Funds to Borrower $301,612 *Calculation assumption based on 10 years of repayment. Benefits of Matching the Loan Terms of the AC Boost Program There are specific benefits for the DPA loan terms to mirror how the AC Boost loan is structured. Having the same loan structures would avoid confusion among potential borrowers and could simplify the home buying process for these borrowers. Hello Housing have already secured forty two AC Boost participating lenders, including Bank of America, Bank of the West, CMG Financial, First Republic Bank, and Union Bank, all of which have been willing to originate a first mortgage for AC Boost applicants or are actively lending to AC Boost loan borrowers . With the same documents and matching terms as AC Boost, these lenders are anticipated to approve Pleasanton's DPA loan as an additional subordinate loan product. Lastly, there could also be an administrative advantage as Hello Housing already administers both the County's AC Boost and the City's DPA program. By matching the loan terms of the AC Boost program, Hello Housing could assist borrowers with a streamlined down payment assistance program that "layer" these two assistance programs to provide borrowers with larger DPA loan amounts vital to be competitive in today's real estate market in Pleasanton. Alameda County would need to allow the AC Boost loan to be layered with local DPA loans, but this programmatic change is not considered to be an issues once the Pleasanton's DPA loan terms are restructured to match the AC Boost loan terms. Possibility of Success of a Restructured DPA Program During its May 16th discussion, members of the Housing Commission expressed concerns that the high costs of homes in Pleasanton would still make it very difficult for hopeful Pleasantonian homebuyers to benefit from a "revamped" DPA Program. At the August 22nd meeting, City staff presented actual "scenarios" in which homebuyers would be able to take advantage of the new $100,000 loan limit amount and loan terms, and consequently, afford to purchase a home in Pleasanton. Hello Housing staff compiled the table below that break down what potential Pleasanton homebuyers, whose household earnings are no more than 120% AMI, can afford, and based on household size, with the assumption that these households would be Page 4 of 6