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Mr. Thorne referred to a letter staff wrote to the California Housing Finance Agency (CaIHFA) indicating there is a surge of condominium conversions, and the Housing Commission would consider eliminating the first-time home buyer requirement. He asked if staff needed to send another letter to CalHFA asking for clarification? Mr. Bocian said the issue was related to the condominium conversion project that recently occurred on Division Street. Staff is now considering the potential of expanding the current definition of "first time home buyer." Staff was particularly interested in providing the information that the State needed to extend the term of the loan as the HELP Loan Agreement expired in the fall of this year. Mr. Sullivan said he would support staff's recommendation. He noted that Council at its last General Plan Workshop indicated it wanted to conduct a workshop on affordable housing and what would be the most feasible way to spend the City's money and discuss the options. In response to an inquiry by Mr. Brozosky, Mr. Bocian said the issue is not the first time home buyer; the issue is the cost of the homes are too high and the City needed to expand its pool of people who bump into 120 percent of the median income. Staff is trying to gain a larger pool of applicants who may qualify. The issue related more to people not qualifying, particularly if their combined maximum income was $98,000 and at the upper end, most applicants do not qualify to purchase homes in Pleasanton. Mr. Brozosky asked why the Housing Commission did not agree to eliminate the first- time buyer requirement altogether? Mr. Bocian said the Housing Commission adhered to the basic First Time Home Buyer Policy the City had for many years, but believed there was value in this transition issue. When staff presented the idea to the Housing Commission, it recommended removing the first-time buyer requirement. The Commission supported removing the first-time buyer requirement for owners of below-market priced homes that were developed through the Pleasanton Homeownership Assistance Program (PHAP) and carry resale restrictions. It was moved by Mr. Brozosky, seconded by Mr. Thorne, to approve the modifications to the guidelines for the Down Payment Assistance program to eliminate the requirement for first.time home buyer status for buyers who have owned a home in the past with resale restrictions. The roll call vote was taken as follows: AVES: Councilmembers - Brozosky, McGovern, Sullivan, Thorne, and Mayor Hosterman NOES: None ABSENT: None ABSTAINED: None Ms. McGovern asked why the loan payments were deferred to the eleventh year. Pleasanton City Council Minutes 22 12/06/05