RES 96144 - Laserfiche WebLink

EXHIBIT A: City of Pleasanton Community Assisted Shared Appreciation (CASA) Second Mortgage Loan Program Guidelines PROGRAM SUMMARY: · $500,000 initial loan pool ($250,000 from City Housing Funds with a match from investor funds). · Maximum limit of $20,000 per individual loan ($10,000 maximum in City funds). · Maximum $58,400 annual income for eligible households (100% of median). · Priority for "low income" households (maximum $46,700 annual income; 80% of median). · Eligibility is restricted to first time, owner-occupant home buyers. · Program is subject to the City's priority and preference system. · Loans may only be applied to the purchase of existing homes located within the City of Pleasanton. Introduction The purpose of the CASA second mortgage loan program is a)to assist income-eligible households with the purchase of an affordable home, b) to provide affordability at fair market value through a "market driven" lending program, and c)to expand the pool of available shared appreciation funds through private lender participation. Public funds from the City are blended with private funds from a financial institution to provide gap financing for a portion of the fair market value purchase price of a home. Northbay Ecumenical Homes (N"EH) will administer the CASA program for the City of Pleasanton and the participating financial institution partner. The attached Table A shows examples of the assistance which is possible through the program based on current interest rates, maximum household income levels, and other constraints. The City will not offer this program for housing units which exceed a sales price of $220,000. Level of City Funding The City shall allocate an initial sum of $250~000 from the Lower Income Housing Fund to create the CASA second mortgage loan pool. This amount will be matched by an investor (i.e., a bank) identified by NEH to create a total of $500,000. This level of funding will provide a reasonably sized pilot program and will also allow a sufficient number of loans to make the commitment of funds and administration worthwhile. After an initial trail period, the City may allocate additional funds toward the program periodically (e.g., on an annual basis) to increase the size of the loan pool if the program proves successful.