SR 05:330 - Laserfiche WebLink

Staff believes that relaxation (or removal) of the first-time home buyer requirement from the DPA program W'ould make the program more usable and W'ould address several demonstrated needs. Staff has suggested modifications to the existing guidelines based on the Housing Commission's recommendation (see attached). The proposed changes W'ould retain a priority for assisting first-time buyers in instances W'here there is competition for a limited amount of funds (to date, this has not been an issue). As discussed beloW', the Housing Commission W'as concemed about opening the program to anyone W'ho has oW'ned a home in the past and added language that W'ould open the program only to households that currently oW'n beloW'-market priced homes in City-sponsored projects such as those listed in the preceding table. Staff recently contacted CalHFA regarding the proposed elimination of the first-time home buyer requirement. CalHF A leaves it to individual jurisdictions to define their oW'n programs that are assisted W'ith HELP funds; therefore, the proposed modification of the guidelines W'ould not be in conflict W'ith CalHFA requirements. HOUSING COMMISSION RECOMMENDATION The Housing Commission discussed this issue at its meeting of October 20,2005. Please refer to the attached excerpt of the minutes from the meeting. The Commission supported removing the first-time buyer requirement for oW'ners of beloW'-market priced homes that W'ere developed through the Pleasanton HomeoW'nership Assistance Program (PHAP) and carry resale restrictions. HoW'ever, they did not favor eliminating the first-time buyer requirement altogether. In addition, the Commission felt it W'ould benefit the program to reduce the required doW'n payment from 3% to 1% in recognition of the other secondary financing programs that are offered by CalHFA and are often "layered" together W'ith programs such as the City's DPA program. These changes have been incorporated into the attached draft modified guidelines. NotW'ithstanding the Commission's recommendation, staff had originally recommended opening the DP A program to all income-eligible buyers regardless of W'hether or not they had oW'ned a home in the past. This W'ould help to address the home purchase challenges faced by persons relocating from out of our area (usually to pursue employment opportunities in the Pleasanton area) as described earlier in this report. While staff endorses the Commission recommendation as a positive step, as an altemative, the Council has the option of expanding qualification to any income eligible household. FISCAL IMPACT The proposed modifications to the guidelines for the City's DPA program W'ould not have any fiscal impact to the City. The funding for this program has already been approved. SR:05 :330