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232 <br /> <br /> The roll call vote was as follows: <br /> AYES: Councilmembers Butler, Mohr, Scribner, Tarver and Mayor <br /> Mercer <br /> NOES: None <br /> ABSENT: None <br /> ABSTAIN: None <br /> <br /> Item 12b <br /> Request to Use the City's Lower Income Housinq Fund for Second <br /> Mortqaqes on Moderate Income Housing Units for First-Time <br /> Homebuyers (SR 91:217) <br /> <br /> Mr. Rick Aguiar, 7736 Flagstone Drive, member of the <br /> Affordable Housing Task Force, expressed concern that the use of <br /> low-income housing funds for projects involving moderate-income <br /> housing would set a precedent regarding the use of affordable <br /> housing funds for the benefit of those earning above 80% of the <br /> median income. He stated that this could tie up the fund when the <br /> money would be needed for a low-income housing project. <br /> <br /> Ms. Scribner asked Staff to define the term "lower-income." <br /> <br /> Mr. Swift replied that it includes incomes that are less than <br /> 80% of the median income. <br /> <br /> Ms. Mohr inquired if the term of the proposed second mortgage <br /> would be the typical 30 years or shorter. <br /> <br /> Ms. Acosta replied that there would be a variety of options, <br /> depending on what the individual circumstances were. She explained <br /> that the purpose of the conceptual discussion at this time is to <br /> come up with a loan program that would make housing units available <br /> to moderate-income homebuyers. She added that Staff would bring <br /> back areport that would include the details of the program. <br /> <br /> Ms. Mohr stated that Mr. Aguiar's concern was valid and <br /> suggested that the term of the second mortgage be limited to five <br /> years, which would be sufficient time to expect an appreciation on <br /> the house for the homeowner to qualify for a conventional second <br /> mortgage based on that appreciation. She added that this would <br /> help moderate-income homebuyers while making the fund readily <br /> available for any low-income project in the near future. <br /> <br /> Ms. Acosta commented that consideration Should be made that in <br /> most cases, the first mortgage has a very low interest rate, such <br /> that any refinancing in five years could change the structure <br /> dramatically. She suggested that the homeowner's income situation <br /> ccu!d bs considered ~hen the !c~n is r~ev~!u~ted ~fter ~',~ y~ars. <br /> <br /> - 22 - <br /> 6-4-91 <br /> <br /> <br />