SR 05:330 - Laserfiche WebLink

$600,000 loan pool that W'as estimated to be able to provide assistance to 10-15 buyers. The Housing Commission revieW'ed the guidelines for the DPA program in July 2003, and they W'ere approved by the City Council in October 2003. A grant agreement W'ith CalHF A W'as executed in November 2003. The DP A program W'as intended to provide a tool for eligible 10W'- and moderate-income buyers to purchase existing homes in Pleasanton (i.e., not necessarily homes that W'ere price-restricted through a City-sponsored Affordable Housing Agreement). The implementation of the program in its first year of operation W'as impeded by rapidly increasing market sales prices. Although there W'as significant interest in the program among prospective home buyers, no applications W'ere received during the first year due primarily to the lack of availability of homes in the 10W'er price range, e.g., beloW' $400,000. In order to be able to meet CalHF A deadlines for beginning to utilize the funds so that they W'ould not be lost, staff W'orked W'ith buyers of three of the homes in Phase III of the Bemal property to use the DPA program to help finance those purchases. The first tW'o loans W'ere funded in November and December 2004. A third loan W'as funded in June 2005. The three loans utilized a total of $75,000 in HELP funds and $25,000 in City Housing Funds. Therefore, there is still $375,000 in HELP funds and $125,000 in City Housing Funds remaining for use. CalHFA requires that HELP funds be committed W'ithin tW'o years of the initial allocation. Staff recently requested a one-year extension from CalHF A to extend the deadline for using the HELP funds from November 2005 to November 2006. The request W'as subsequently approved by CalHFA on October 27, 2005 (see attached letters). As noted in the initial letter, staff is optimistic that activity vvill pick up W'ithin the next several months as W'e promote the DP A program as a tool the assist W'ith the sale of condominiums the may become available through condo conversions. Similarly, W'e anticipate that the program may prove useful to persons W'ho W'ant to purchase "affordable by design" units that W'ill become available in the near future in several neW' projects (e.g., SilverstonelVineyard Ave., Winter/St. John St.). DISCUSSION As the Council is aW'are, the City has had a program since the early 1990's to assist first-time home buyers in overcoming the obstacle of high local housing costs to be able to purchase homes in Pleasanton. These homes, part of neW' subdivisions, have been achieved through negotiation and collaboration betW'een the City and various home builders. To date, these efforts have resulted in the development of over 120 affordable homes in ten separate developments (see table beloW'). The most recent and largest of these efforts included the 56 homes on the Bernal property that W'ere sold for $199,000 to 10W'-income buyers. SR:05:330