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<br />THE CITY <br /> <br />- <br /> <br /> <br />Housing Commission <br />Minutes <br />[EXCERPT] <br /> <br />pL EASANTON.. <br /> <br />City Council Chambers, 200 Old Bernal Avenue, Pleasanton, CA <br /> <br />October 20, 2005 <br />7:00 p.m. <br /> <br />8. PUBLIC HEARINGS AND OTHER MATTERS <br /> <br />C. Approval of Modifications to the Guidelines for the City's DoW'n Payment <br />Assistance Program <br /> <br />Scott Erickson presented the staff report. Mr. Erickson stated that many of the <br />Commissioners W'ere involved W'hen the City sought the funds from CalFHA a feW' years <br />ago. As W'ith many programs like this, once they are established the housing market <br />changes and it becomes difficult to use the program due to incompatibility betW'een the <br />eligibility requirements (e.g., income) and ever-increasing housing prices. That has been <br />the case W'ith the DP A program. Staff W'as able to preserve the funding and make several <br />quick loans for the last buyers of the Bemal Homes, as they W'ere beloW'-market priced. <br />HoW'ever, the real intent of the DPA program W'as to fill a different need by providing a <br />resource for people W'ho W'anted to buy existing homes on the open market. <br /> <br />Mr. Erickson noted that staff recently requested an extension for using the HELP funds <br />and expects it W'ill be approved for another year. In the letter to CalFHA requesting the <br />extension, staff noted several positive trends, including neW' inclusionary units, a surge in <br />requests for condo conversions, and ..affordable by design" units. In addition, the Tri- <br />Valley Housing Opportunity Center recently opened and W'ill help promote the DPA <br />program to people W'ho might benefit from it to purchase a home. <br /> <br />Staff has observed that one constraint that has limited use of the program is the restriction <br />to first-time buyers. This limitation prevents use of the program by oW'ners of existing <br />PHAP homes W'ould like to .'move up" but cannot because they still need assistance to <br />purchase a market-rate home. If they W'ere able to use the DP A program, it be possible <br />for them to move and thereby free up their PHAP homes for purchase by other 10W'- <br />income households. Another potential interest group is people W'ho moving to Pleasanton <br />from other regions and may have oW'ned a home previously but cannot afford local <br />housing prices. Mr. Erickson noted that this is a policy question W'ith several different <br /> <br />Page - 1 - <br />