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D. Retain the Status Quo and Revaluate the Program after CaIHFA Responds to the <br />City Loan Application. With this option the program will be in a holding pattern with <br />little emphasis placed on marketing and no loan processed. CaIHFA is expected to <br />make a decision in July after which time the HC can evaluate programmatic and <br />funding options as noted in C above, and make a recommendation to the City <br />Council. <br />Staff supports option C as recommended by the Housing Commission. However, <br />pending a final response from CaIHFA, staff is concerned with the City funding the <br />program entirely and making any significant increase to the total loan amount. While <br />there is the obvious concern regarding loan defaults, staff is also obligated to repay <br />HELP funds in the event of default and as such, its exposure is somewhat similar. <br />Staff's primary concern is that the amount of funding provided to any one household <br />should not be excessive and should reflect the $20,000 loan cap that has been used <br />previously by the City. However, these issues can be discussed thoroughly by the <br />Housing Commission. If the Council has concern regarding the additional funding at <br />this time, staff recommends option D. As indicated, a decision on the CaIHFA grant is <br />expected in June or July of this year. <br />Fiscal Review: Submitted and Approved by: <br />1;~' `~ ~ <br />David P. Culver Steven Bocian <br />Finance Director Acting City Manager <br />Attachments: <br />1. Program guidelines and Program Brochure <br />2. CaIHFA letter of November 21, 2006 <br />3. HUD Area Median Income Limits Table <br />4. March 15, 2007 Minutes from the Housing Commission Subject to Approval <br />Page 6 of 6 <br />