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an additional subordinate loan product. Lastly, there could also be an administrative <br /> advantage as Hello Housing already administers both the County's AC Boost and the <br /> City's DPA program. By matching the loan terms of the AC Boost program, Hello <br /> Housing could assist borrowers with a streamlined down payment assistance program <br /> that "layer" these two assistance programs to provide borrowers with larger DPA loan <br /> amounts vital to be competitive in today's real estate market in Pleasanton. Alameda <br /> County would need to allow the AC Boost loan to be layered with local DPA loans, but <br /> this programmatic change is not considered to be an issue once the Pleasanton's DPA <br /> loan terms are restructured to match the AC Boost loan terms. <br /> Possibility of Success of a Restructured DPA Program <br /> At its May 19, 2019 meeting, members of the Housing Commission expressed concerns <br /> that the high costs of homes in Pleasanton would still make it very difficult for hopeful <br /> Pleasantonian homebuyers to benefit from a "revamped" DPA Program. At the August <br /> 22, 2019 meeting, City staff presented actual "scenarios" in which homebuyers would <br /> be able to take advantage of the new $100,000 loan limit amount and loan terms, and <br /> consequently, afford to purchase a home in Pleasanton. <br /> Hello Housing staff calculated the information in Table 2 below that identifies what <br /> potential Pleasanton homebuyers, whose household earnings are no more than 120% <br /> AMI, and no more than 80% AMI, can afford, and based on household size. The <br /> calculations assume that these households would be approved for an AC Boost loan up <br /> to $100,000 for 120% household and $150,000 for 80% AMI household that is layered <br /> with a Pleasanton DPA loan up to $100,000. The calculations also assume a 30% <br /> housing cost ratio, a 5% down payment contribution from the buyer, a 3.25% interest <br /> rate, and an income 10% below the maximum income limit. <br /> Table 2 <br /> Home Prices <br /> Household Size 120%* 80% <br /> 2 $553,650 $457,302 <br /> 3 $608,404 $495,473 <br /> 4 $663,053 $533,435 <br /> 5 $706,855 $564,097 <br /> Table 3 lists the number of transactions that closed at varying pricing points in the last <br /> twelve months (September 1, 2019 through August 31, 2020), per bridgeMLS. <br /> Page 6 of 9 <br />