SR 05:330 - Laserfiche WebLink

options: 1) keep the first-time buyer requirement in place, 2) adopt some .'in betW'een" option (e.g., alloW' existing PHAP oW'ners to use the program), or 3) eliminate the first- time buyer requirement altogether. Mr. Erickson stated that CalFHA gives the City the latitude to set W'hatever guidelines W'e W'ant for the program. Chairperson Stark indicated that he feels W'e should look at the 3% doW'n payment required, specifically as it relates to the CalFHA products. It is his understanding that CalFHA products may W'aive to 1 % minimum. He has a problem W'ith eliminating the firs-time buyer requirement. He feels there is appreciation everYW'here. Chairperson Stark has concem regarding the flexibility to tailor the program to fit our needs. He is concemed if there are other regulatory things that W'e need to knoW' about. Specifically because this is a redevelopment funded program and W'e need to ensure that the participants W'eren't paying more then 35% of their income on housing costs. Mr. Erickson replied that there are standards in the guidelines that address the ratio. Commissioner Hodgett asked if there W'ere resale restrictions. Mr. Erickson replied that there are no resale restrictions W'ith the DP A program. Ms. Hodgett stated that if she found an affordable condo (not a BMR unit) and she had this money she could purchase the unit. Mr. Erickson replied that she W'ould enjoy the benefit of the market appreciation on that particular home and W'ould pay back the loan. Ms. Hodgett asked about the length of term on the loan. Mr. Erickson replied that the W'ay it is structured there is flexibility. HoW'ever, the three loans that have been done to date W'ere dually funded W'ith one ten- year loan from CalFHA funds and a second deferred loan from City funds (W'ith payments starting in year 11). Steven Bocian commented that one of the issues driving this is the .'middle class squeeze" W'here you find people W'hose needs are not addressed by any City assistance program. The DP A program may be able to assist a group of people to oW'n a home W'ithout placing too much of a financial burden on the City. Chairperson Stark suggestion modifications to #2, page 1 adding language regarding the exact amount of assistance W'ill be determined based on evaluation of assets and need. The Commission discussed this item. It W'as moved by Vice Chairperson Harris, seconded by Commissioner Whisnand, to modify the language in item 2 on page 1 to state that the program may be used by buyers W'ho have oW'ned a home in the past W'ith resale restrictions and adding language about the flexibility of the 30/0 doW'n. Motion passed unanimously. Oct 2005 He Minutes excerpt.doc/SFE 11/29/058;40 AM Page - 2 -