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ATTACHMENT 1 THE CITY OF ,�, ; Housing Commission � melml ,,, Minutes LE ASANTON® EXCERPT CITY COUNCIL CHAMBERS - 200 OLD BERNAL AVENUE MAY 16, 2019 - 7:00 P.M. PUBLIC HEARINGS AND OTHER MATTERS 6. Overview of the Alameda County Down Payment Assistance Program (AC Boost) and informational Review and Discussion of Pleasanton Down Payment Assistance (DPA) Program Mr. Hernandez provided information about the Down Payment Assistance (DPA) Program that has been maintained since 2003 by the City of Pleasanton. He advised that currently there is a total of fifty (50) homeowners who have down payment assistance loans from the city and of these forty-six (46) reside in and own Below Market Rate (BMR) homeownership units, with the other four (4) owning unrestricted market-rate units. Commissioners were advised that the purpose of the DPA Program is to provide low and deferred interest mortgages that will supplement bank financing that will allow low-income (80% AMI) and moderate-income (120% AMI) first time homebuyers the opportunity to purchase homes in Pleasanton. Mr. Hernandez noted that because of significant increases in market prices in Pleasanton, and the overall Bay Area, the City of Pleasanton DPA Program has been used very little over the past number of years and only one (1) DPA loan has been issued since 2015. He noted that the Program currently provides up to $20,000 in the form of a 20-year low-interest (3.5%) loan in down payment assistance for low- and moderate-income buyers, which is not sufficient to contribute to the industry requirements of buyers providing a 20% down payment to purchase a home in Pleasanton. Commissioners were requested to consider re-evaluating the DPA Program and review options provided by staff that included: 1. Evaluate Incorporating AC Boost Program Policies —this option would direct City Staff to review program policies of the Alameda County Down Payment Assistance Program (AC Boost) to determine if they can replace and/or improve the existing program policies of the DPA Program. AC Boost funded by the Measure Al Affordable Housing Bond provides up to $150,000 in the form of a shared appreciation down payment assistance loan to buy a home in Alameda County. Policies include: a) increasing the maximum loan amount from $20,000 to the AC Boost loan limits, b) restructuring the DPA loan to a "Deferred Payment Loan", and c) Adopting a "Shared Appreciation Loan". 2. Explore Other Program Models — under this option City Staff would be directed to review Page - 1 -