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Commissioner Galvin expressed concerns on who would be able to qualify for these loans. <br /> Having worked in the mortgage business he was concerned about how lenders look at things in <br /> order to provide funding. He felt the City should have a method by which builders should be <br /> required to set aside funds to provide loans, and that a Subcommittee needed to be put in place <br /> to look at how such a proposal could be put in place. Mr. Dolan advised that what was <br /> presented to the Commission in May mirrors an Alameda County implemented program and <br /> part of the proposal is to use these funds in tandem with other sources. <br /> Mr. Warner provided details about the Alameda County Program and lenders that have been <br /> brought along to participate in the program. He felt that with the additional funds from <br /> Pleasanton people would be able to qualify. Commissioner Galvin questioned how many <br /> homes in Pleasanton would fit into the home sales criteria, and Mr. Warner provide information <br /> about homes sold. <br /> Commissioner Duggan commented on the strict criteria and felt this would need to be for market <br /> rate housing and not below-market housing. She discussed income required for qualifications, <br /> shared appreciation and the program offering opportunities, but questioned what would happen <br /> if the housing market were to crash. Mr. Dolan advised that the City of Pleasanton would follow <br /> whatever steps were taken by the County. <br /> Commissioner Duggan discussed funding being provided by the City and felt turnover funds <br /> would come back to the City. She indicated she did not see any benefit to changing the <br /> Ordinance and felt it should be kept as is and this program would provide loans for moderate <br /> income/moderate rate housing opportunities. <br /> Commissioner Galvin questioned whether the City has received any funds back from the Bernal <br /> properties involved in the current program a few years ago. Mr. Hernandez advised that little <br /> funds have been received by the City of Pleasanton. <br /> Mr. Dolan discussed with Commissioner Galvin aspects of the Bernal property and felt the <br /> Commission should be considering how low-income people can be helped. Commissioner <br /> Welsh felt these homes had been a lot less than market-rate at the time. <br /> Chairperson Soby was unsure how funds would be regained by the City if there was to be a <br /> market crash. Mr. Warner commented on risks in the program, and Chairperson Soby felt if the <br /> City were to move forward with these changes that it was important they understand all negative <br /> aspects and Commissioner Galvin questioned if people in the program would be required to <br /> obtain mortgage insurance. <br /> Mr. Dolan addressed concerns raised about giving preference to local people when using City of <br /> Pleasanton funds and issues about doing the same when County funds will be involved. He felt <br /> this was an issue that Council would consider carefully. Commissioner Gaidos questioned <br /> whether the City had faced any challenges regarding this in the past. Mr. Hernandez noted that <br /> HUD has indicated this could be a Fair Housing issue that would impact minorities. <br /> Commissioner Gaidos indicated that he felt strongly about this matter and felt some prioritization <br /> should be included that would help people working for nonprofits, county employees, <br /> firefighters, teachers, etc. <br /> Mr. Dolan provided information about qualifications required in the current DPA program, and <br /> Commissioner Gaidos stated that he did not want people to be able to come forward and take <br /> advantage of the program. Mr. Warner noted that people are advised to submit loan <br /> applications prior to looking for homes. <br /> Page - 2 - <br />