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2) Modify the term of the first 10-year loan to defer all payments with no accrued interest for the first two years with payments fully amortized over the remaining eight years of the loan; 3) Utilize a 50/50 split between City and HELP funds for all DPA loans; and 4) Increase the maximum loan amount for moderate income buyers from $40,000 to $60,000. Vice Chairperson Stark thanked staff for the quick turnaround in getting this matter before the Commission for review. He stated that it is important that the DPA program fit well with typical primary financing sources. In particular, Mr. Stark expressed general concern with the implications of allowing co-signers. He did not have a specific concern but asked that staff vet this proposed change as well as the other changes with lenders to make sure that they will all be workable and beneficial. Scott Erickson stated that he will attend a meeting of the Bay East Association of Realtors Housing Opportunity Council next week and will use that as an opportunity to solicit feedback from lenders. Vice Chairperson Stark felt that it would be appropriate to keep the first-time home buyer provision in its current form as recommended by staff. He added that he feels that the real estate community will like the proposed changes. The Commission discussed the proposed changes and generally concurred that they would improve the usability of the DPA program. It was moved by Commissioner Harris, seconded by Commissioner Casey, to approve the staff recommendation with the clarification that staff will solicit input from lenders and realtors at the BEAR meeting next week. Steven Bocian clarified the recommendation listed as #2 in the staff report. He stated that staff feels that two years is an appropriate time period for deferring initial payments so that lenders do not count the payment toward the borrower's debt. However, he indicated that the specific deferral time period may change if lenders advise otherwise. The Commission affirmed that staff could be flexible to incorporate a different period in the final version of the guidelines based on feedback received from lenders. The Commission voted on the motion, which carried unanimously. Page-2-