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THE CITY OF ~iu1 ®-1 ---n iti : u .~.f 1 ~ ~ ~ j~L~~S~4NTON® October 26, 2006 California Housing Finance Agency (CaIHFA) Attn: Amanda Rose, HELP Program Specialist 1211 L Street, 7`h Floor Sacramento, CA 95814-3974 Dear Ms. Rose: RE: City of Pleasanton HELP Loan Agreement Request for Extension The purpose of this letter is to request a second extension to the HELP loan that was granted to the City of Pleasanton in 2003. The commitment is currently scheduled to expire on November 7, 2006. As you are aware, the $450,000 in HEi.P funds that were allocated to the City of Pleasanton are being combined with $150,000 in local City funds to provide a Down Payment Assistance (DPA) program for 10 to l5 low and moderate income home buyers. Dour (4) loans have been issued to date involving a total of $95,000 in HELP funds and $45,000 in City funds. Three loans were provided to low income buyers (with incomes at or below 80% of the Area Median Income, or AMI), while the most recent loan went to a moderate income buyer (120% of AMI). The DPA program has obviously progressed much more slowly than we had originally anticipated. Sitlce the program was conceived in 2003, market sales prices for homes in Pleasanton have continued to increase, rising by more than 30%. The median sales price for a single family home in Pleasanton is presently $860,000 while the median price for a condominium is $505,000 (source: Bay East Association of Realtors). The combination of high market housing prices and our own program income eligibility requirements creates an impediment to the effectiveness of the DPA program. In spite of the current challenges, we have good reason to believe that we will be able to use most if not all of our remaining HELP funds within the next six to twelve months based on the following factors: ^ In late 2005, the City Council approved a modification to the DPA program guidelines to eliminate the existing first-time buyer restriction. This opens the program to more potential buyers and may also free up existing below-market homes by creating a new purchase opportunity for households living in existing price-restricted homes who would like to "move up." P. O. Box 520, Pleasanton, CA 94566-0802 123 Main Street City Manager City Attorney Economic Development City Clerk (9251 931-5002 1925 931-501 S 157 Main Street 19251 931-5027 Fax: 931-5481 Fax' 931-5482 1925)931-8018 Fax: 931-5488 Fax' 931-5476