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- One (1) buyer closed escrow in late October (i.e., becoming the fifth loan issued under the program). - Two (2) buyers are currently in escrow and due to close in November. - Two (2) are from the first two buyers of Birch Terrace below-market priced homes. - The remaining applicants are actively searching for properties to purchase. - Five (5) of the active applications are from low income households and five (5) are from moderate income households. Staff anticipates receiving at least three (3) additional applications within the next several months for the remaining Birch Terrace units that are not yet under contract. Proposed Program Modifications In its action at the April 17 meeting, the City Council directed staff to pursue limited interim City funding for the program and to assess the following areas in which changes could be made to the DPA program: 1. Eliminate the existing provision preventing co-signers 2. Extend the loan term beyond 20 years 3. Increase the maximum loan amount(s) 4. Remove the first-time buyer restriction The Council also discussed transferring the administration of the DPA program to the Tri-Valley Housing Opportunity Center (TVHOC). Staff has had preliminary discussions with the TVHOC regarding this matter and recently submitted a "master agreement" for services with the TVHOC that was recommended for approval by the Housing Commission on October 18. The master agreement will be submitted for approval by the Council in the near future. Until an agreement has been reached with the TVHOC, staff will continue to administer the DPA program directly. The four areas of modification listed above, and others, were reviewed by the Housing Commission as follows: 1) Eliminate the Co-signer Restriction The DPA program guidelines currently permit borrowers to use a co-signer. However, the co-signer's income must be included in determining program eligibility which precludes most applicants from using a co-signer. Staff believes that it would be acceptable to eliminate this restriction except in cases where the DPA program is used in conjunction with specific below-market priced homes that are sold through the Pleasanton Homeownership Assistance Program (PHAP). PHAP homes are typically priced significantly below-market, and the income eligibility restrictions are directly related to the established below-market sales prices for these homes. The unrestricted acceptance of co-signers for these homes would jeopardize the purpose of the PHAP program by creating an unfair advantage for some buyers (i.e., those who have access to co-signers). Therefore, staff and the Housing Commission Page 3 of 10