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Attachment 3 THE CITY OF - ~ ~~~~- r ~ li°: NI i 111 ~~~ ~L£~S~4NTONo Housing Commission Minutes (EXCERPT) SUBJECT TO APPROVALI City Council Chambers, 200 Old Bernal Ave., Pleasanton, CA November 20, 2008 7:00 p.m. 8. PUBLIC HEARINGS AND OTHER MATTERS A. Application by HOUSE, Inc., for HOME Funds to Acquire Housing in Pleasanton for Developmentally Disabled Adults Scott Erickson provided an overview of the agenda report. He noted that at the August 21 and October 23 meetings the Housing Commission had considered a request by HOUSE, Inc., for federal HOME funds to assist the agency in acquiring a fourth residential property in Pleasanton to provide housing for developmentally disabled adults. The Commission was generally supportive of the concept but had concerns regarding the $450,000 being requested and had requested to see additional information. At the October meeting, the Commission was presented with an alternative recommendation that involved the potential purchase of abelow-market priced home with a $241,985 sales price. Staff then met with HOUSE, Inc., representatives following the October meeting and a modified plan was developed, which they feel addresses the concerns expressed by the Commission. The primary modification involves increasing the down payment supplied by HOUSE, Inc., from $40,000 to $50,000. Commissioner Harris questioned Mr. Erickson about increased equity when the property is sold since this is a subsidized property. Mr. Erickson described the formula for determination the maximum resale price which is based primarily on changes in the Area Median Income, or AMI. It was noted that the AMI historically increases by about 3% to 4% each year on average. Chairperson Stark requested that Mr. Erickson review in detail the terms of the financing as outlined in the agenda report. The terms were reviewed by Mr. Erickson who also advised that should the Commission feel that additional leveraging is desirable, HOUSE, Inc., could receive a $20,000 partially deferred loan through the City's Down Payment Assistance (DPA) program, which could be used to either offset the $50,000 HOUSE, Page - 1 -