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<br />September 15,2005 <br /> <br /> <br />Califomia Housing Finance Agency (CaIHFA) <br />Attn: Amanda Rose, HELP Program Specialist <br />1211 L Street, 7th Floor <br />Sacramento, CA 95814-3974 <br /> <br />Dear Ms. Rose: <br /> <br />RE: City of Pleasanton HELP Loan Agreement Request for Extension <br /> <br />The purpose of this letter is to request an extension to the HELP loan that vvas granted to the City of <br />Pleasanton in 2003. The commitment is currently scheduled to expire on November 7,2005. <br /> <br />The $450,000 in HELP funds that vvere allocated to the City of Pleasanton are being combined vvith <br />$150,000 in local City funds to provide a Dovvn Payment Assistance (DPA) program for 10 to 15 lovv <br />and moderate income home buyers. Three (3) loans have been approved to date involving a total of <br />$75,000 in HELP funds and $25,000 in City funds. All three loans vvere provided to lovv-income buyers <br />(with incomes at or belovv 80% of the Area Median Income). <br /> <br />Since our DPA prognun was conceived in 2003, market sales prices for homes in Pleasanton have <br />increased dratnatically by more than 300/0. The median sales price for a single family home in <br />Pleasanton is presently $845,000 vvhile the median price for a condominium is $519,000 (source: Bay <br />East Association of Realtors). The combination of high market housing prices and our ovvn program <br />income eligibility requirements creates an impediment to the effectiveness of the DP A program. <br /> <br />In spite of the current challenges, vve are optimistic that the environment for using our DPA prognun <br />will improve in the coming months based on the follovving plan: <br /> <br />The City has been a key partner in the development of the neW' Tri-Valley Housing Opportunity <br />Center vvhich is scheduled to open on Saturday, September 24, in Livermore (please refer to the <br />enclosed information). The DP A program vvill be a key financial tool available to Center clients. <br />In recent months, the City has experienced a surge in requests for condominium conversion. <br />Although vve are evaluating the impact on the City's rental housing stock, this trend creates nevv <br />opportunities for affordable home ovvnership. The City is currently vvorking vvith one specific <br />complex in vvhich the DPA program provides an ideal incentive to tenants vvho vvould like to <br />purchase their units. <br />At its October meeting, the City's Housing Commission will consider modifying the DPA program <br />guidelines to eliminate the existing first-time buyer restriction. This will open the program to more <br />potential buyers and may also free up existing beloW'-market homes by creating a nevv purchase <br />opportunity for houscholds living in existing price-restricted homes \-vho vvould like to ""move up." <br /> <br />P. O. Box 520, <br /> <br />City Manager <br />(925) 931-5002 <br />Fax: 931-5482 <br /> <br />Pleasanton, CA 94566-0802 <br /> <br />City Attorney <br />(925) 931-5015 <br />Fax: 931 -5482 <br /> <br />Economic Development <br />157 Main Street <br />(925) 931-5038 <br />Fax: 931 -5476 <br /> <br />123 Main Street <br /> <br />City Clerk <br />(925) 931--5027 <br />F<,x: 931 <,438 <br />