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8 <br /> THE CITY OF <br /> -• -�••''r CITY COUNCIL AGENDA REPORT <br /> pLEASANTON <br /> October 20, 2020 <br /> City Manager <br /> Housing Division <br /> TITLE: APPROVAL OF MODIFICATIONS TO THE CITY'S DOWN PAYMENT <br /> ASSISTANCE PROGRAM TO INCREASE THE MAXIMUM LOAN AMOUNT, <br /> RESTRUCTURE THE LOAN TERMS, AND ADOPT A SHARED <br /> APPRECIATION LOAN POLICY FOR REPAYMENT <br /> SUMMARY <br /> The 2019 City Council Work Plan identified the need to re-examine the City's Down <br /> Payment Assistance (DPA) program to increase its effectiveness. This report describes <br /> a proposal for modifications to the DPA program to better assist prospective Pleasanton <br /> first time homebuyers. The report includes a recommendation to increase the maximum <br /> loan amount, restructure the loan terms, and adopt a "shared appreciation loan" policy <br /> for repayment. The Housing Commission discussed, reviewed, and supported these <br /> recommended modifications to the DPA program. <br /> RECOMMENDATION <br /> It is recommended the City Council approve the proposed modifications to the City's <br /> Down Payment Assistance Program. Staff also recommends that Council direct staff to <br /> include $100,000 to $300,000 in the FY 2020/21 midterm budget to be used to fund this <br /> program. <br /> FINANCIAL STATEMENT <br /> The proposed modifications to the City's DPA program would require the City to allocate <br /> more funding to support the program. The DPA program is largely funded with the <br /> Lower Income Housing Fund (LIHF), and the proposed modifications would result in <br /> more LIHF funds being expended annually. The current balance of the LIHF is <br /> approximately $10,000,000. The annual cost of the program would be up to $300,000 <br /> per year if the City were to process three loans at the maximum funding level. <br />