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2 <br />THE CITY OF <br />-° •° •° -~- ~ CITY COUNCIL AGENDA REPORT <br />j~L~~S~4NTONo <br />June 17, 2008 <br />Assistant City Manager <br />TITLE: APPROVE ADDITIONAL FUNDING AND MAXIMUM LOAN AMOUNTS <br />FOR THE CITY'S DOWN PAYMENT ASSISTANCE LOAN PROGRAM <br />SUMMARY <br />The City has had a Down Payment Assistance (DPA) program since 2004 that has <br />been funded with the City's Lower Income Housing Fund (LIRE) and the California <br />Housing Finance Agency (Ca1HFA) HELP (Housing Enabled by Local Partnerships) <br />program. The DPA has essentially loaned all available funding and CaIHFA has not <br />approved additional funding for the program. This report provides alternatives for the <br />continued operation and funding of the program and a recommendation to allocate <br />$300,000 in additional funds from the City's Lower Income Housing Fund. <br />RECOMMENDATION <br />1) Approve modifications to the DPA program to create a new maximum of $20,000 for <br />loans that are funded 100% from City funds; and 2) approve the allocation of $300,000 <br />from the Lower Income Housing Fund to provide continued funding to the DPA program. <br />FINANCIAL STATEMENT <br />The proposed funding of the DPA program would require the allocation of $300,000 <br />from the City's Lower Income Housing Fund (LINE). The LIHF currently has an <br />uncommitted balance of approximately $10 million. <br />