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ATTACHMENT 1 THE CITY OF Housing Commission nlu11111 111 �lp • Minutes LEASANTON. EXCERPT CITY COUNCIL CHAMBERS - 200 OLD BERNAL AVENUE JUNE 20, 2019 - 7:00 P.M. PUBLIC HEARINGS AND OTHER MATTERS 6. Overview of the Renew Alameda County (Renew AC) and Informational Review and Discussion of Pleasanton Housing Rehabilitation Program Mr. Hernandez provided information about the financial and technical assistance the City of Pleasanton has offered to lower income households through its Housing Rehabilitation Program (Housing Rehab Program) since 1993. He advised that the intent of the Program has been to maintain safe homes and attractive neighborhoods, preserve affordable housing, improve the quality of Pleasanton's housing stock, and ensure compliance with the city's building and zoning codes. It was noted that two types of assistance are available — loans or grants. Grants are typically for projects that are below $10,000, and should projects be over $10,000 that a deferred loan with no monthly payment is available up to $35,000. Currently all loans are 3% simple annualized interest with a term of 30-years. 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: 1. 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 Page - I -