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THE CITY OF Housing Commission <br />_ :~ ~~~~ Staff Report <br />L ~ ~S~4NTONo May 15, 2008 <br />Item 8B <br />SUBJECT: Discussion of Options for Providing Additional <br />Funds to the City's Down Payment Assistance Loan <br />Program <br />STAFF RECOMMENDATION: Recommend that the City Council 1) approve <br />modifications to the DPA program to create a new <br />maximum of $20,000 for loans that are funded 100% <br />from City funds; and 2) approve the allocation of <br />$300,000 from the Lower Income Housing Fund to <br />provide continued funding to the DPA program. <br />ATTACHMENTS: 1. Proposed Modifications to the Down Payment <br />Assistance Program Guidelines <br />2. Housing Commission Staff Report and Minutes <br />(9/20/2007) <br />Background <br />In August 2007, the City received a new allocation of $250,000 from the California Housing <br />Finance Agency (Ca1HFA) for its Down Payment Assistance (DPA) program that was matched <br />with a similar amount of City funds. At the September 2007 meeting, the Housing Commission <br />approved several minor modifications to the DPA program in order to increase flexibility and <br />marketability (please refer to the attached staff reports and minutes from the meeting). These <br />changes were subsequently approved by the City Council with the direction that staff should <br />increase the marketing of the program. <br />The DPA program experienced a surge in activity since last September due in part to the <br />changes made to the program guidelines and also the softening of the local housing market. As <br />a result, all remaining funds in the DPA program were committed by November 2007 and the <br />program has been without funds since that time. As discussed in the September 2007 staff <br />report, staff is bringing this item back to the Commission at this time for consideration regarding <br />options for returning funds to the DPA program. <br />Page - 1 - <br />