RES 91208 - Laserfiche WebLink

EXHIBIT A POLICIES GOVERNING THE PLEABANTON SECOND MORTGAGE LOAN PROGRAM 1. The primary purpose of the Second Mortgage Loan Program is to expand the range of persons eligible to purchase a home in conjunction with the Pleasanton Homeownership Assistance Plan. 2. Residential projects which contain units eligible for the Pleasanton Homeownership Assistance Plan may be eligible for participation in the Second Mortgage Loan Program should the City Manager at his/her discretion determine that funding is available. The amount of funding to be made available is subject to the discretion of the City Manager. 3. No person shall be eligible for the Second Mortgage Loan Program until first meeting all requirements of the Pleasanton Homeownership Program. 4. Second loans may be granted to persons qualifying under the Pleasanton Homeownership Assistance Plan who would not otherwise be able to afford the housing unit. The determination of ability to afford the unit shall be made based primarily upon gross income. However, an applicant's assets may also be taken into account. Successful applicants for second loans shall be selected in the order of those selected for the Pleasanton Housing Assistance Program, subject only to the availability of funds and meeting the criteria for the second loan. 5. No second loan shall exceed 20 percent of the purchase price of the unit. 6. At least 2-1/2 percent of the unit sale price must be a cash down payment. 7. The applicant's total monthly payment towards housing costs (including all mortgage payments, insurance, property tax, and homeowner's association fees) shall not exceed 45 percent of the applicant's monthly gross income. 8. The term of the second loan shall generally be a maximum of 15 years, although the City Manager may at his/her discretion lengthen the term. 9. The principal amount of the second loan shall be subject to the discretion of the City Manager and shall balance the two goals of achieving affordability of the unit to the qualifying household while conserving the Second Mortgage Loan Program fund balance for assistance to the maximum number of households. 10. Interest rates may vary from 0 percent to fair market rate.