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Sample Shared Appreciation Loan Calculation: Original Purchase Price $663,053 DPA Loan Amount $100,000 Shared Appreciation 15.08% Proposed Sale Price $863,053 Amount Appreciated $200,000* DPA Shared Appreciation $ 30,160 Estimated 1st Mortgage Pay Off $390,668** (3.25% interest on a 30-year loan) DPA Loan Due $130,160 Estimated Total Pay Off $520,828 Estimated Funds to Borrower $342,225 *An assumed amount of appreciation for illustrative purposes. **Calculation assumption based on sale of property after 10 years. Although the loan repayments would now be deferred, a shared appreciation loan will allow the funds to revolve and serve more prospective first-time homebuyers as the larger amounts of repayments could more quickly replenish the DPA Program funds in the future. Currently, the City is receiving nominal monthly repayment amounts from its existing DPA loan accounts. From January through December 2019, the City received a combined repayment amount of $32,762 (or an average monthly amount of $2,730) from twenty borrowers who are currently repaying their DPA loans. As shown in the sample calculation above, a borrower would provide $130,160 (or $30,160 in additional payments) to fully repay a $100,000 DPA loan if they sell the home after 10 years. Despite being deferred and at 0% interest rate, a shared appreciation loan would provide the City with a repayment amount comparable to the return on a more conventual loan, that would be redistributed to assist future homebuyers.' 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 has 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 A $100,000 DPA loan with a 20-year/3/5% interest rate loan terms that requires monthly payments would generate$28,245 in interest payments(and approximately $1,360 in earnings on those payments for a total return of $129,605)for the City after 10 years. Page 5 of 9