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3 b) The City agrees to provide funding from the LIHF to increase the affordability of the units from 100% AMI to 80% AMI. The LIHF amount to bridge the gap from 100% to 80% AMI, for all 8 units, is estimated to be in the $800,000 - $1 Million range. ($100,000-$125,000 per unit). c) Units will be deed restricted at 80% AMI. In practical terms, the units will be sold through escrow with a qualifled buyer paying the price up to 80% AMI, and the City bridging the funding gap between 80% and 100% AMI price. (2) The current AHA does not state that that the City would buy the units. However, in theory the City could opt to purchase some or all of the units – it would require a separate Council approval to allocate LIHF for that purpose. a) If the City Council chose not to allocate any LIHF funds to lower the affordability of the units from 100% to 80% AMI, then the AHA would need to be revised to refiect that the units would be deed-restricted at 100% AMI versus 80% AMI. b) Note that, for the 55-unit project, the original offer made by the developer was to deed-restrict the units at 120% AMI and make a (total) $77,228 payment to the LIHF. The revised proposal negotiated by staff is signiflcantly more favorable in terms of the affordability of the units, with or without City funding. Without any City contribution, 80% AMI affordability is only proposed by the developer in conjunction with the 57-unit project (Option 1 and related AHA). 3. Q. Are there likely to be interested and qualified buyers for the affordable units? Does this vary based on the price/affordability of the units? A. (1) According to a market study conducted by the City’s consultant (BAAHA), there is unlikely to be signiflcant interest in purchasing units if priced at 120% AMI, because it is too close to the market rate for a 1-bedroom condo, and unlikely to be attractive to buyers when coupled with the restrictions that would limit re-sale appreciation caps, and other limits. (2) At present, there are 50 homebuyers in the City’s “interested buyers” database at 80% AMI; 60 homebuyers at 100% AMI (and 75 homebuyers at 120% AMI). This suggests (and staff believes) there is likely to be good demand for the units at either 80% or 100% AMI. However, the interested buyers list is dynamic, and buyers may be more or less interested in particular units based on size, location, amenities and other factors. 4. Q. What has been the uptake on the City’s Downpayment Assistance Loan Program (PLALP)? A. The program was re-vamped in 2021 (to increase loan amount from $20,000 to $100,000 and make the loan be a no -interest, shared appreciation loan versus incurring interest. The program is funded through the Low-income Housing Fund (LIHF). Only one buyer has taken advantage of the program under its new terms – staff believes this is principally because of the high cost of homes in Pleasanton, which makes purchase out of reach of qualifled buyers, even with downpayment assistance.