8D Consent 2008 0107 - Laserfiche WebLink

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REDEVELOPMENT AGENCY OF THE CITY OF SAN LEANDRO STAFF REPORT DATE: TO: FROM: BY: January 7, 2008 John Jermanis, Executive Director APPROVED AND FORWARDED TO REDEVELOPMENT AGENCY Joh ermanis Ex ~ve Director Luke Sims, Community Development Director~pn Tom Liao, Housing/CDBG Manager SUBJECT PROJECT/PROJECT DESCRIPTION: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN LEANDRO AUTHORIZING AN AMENDMENT TO THE REDEVELOPMENT AGENCY BUDGET TO ALLOCATE AN ADDITIONAL $150,000 FROM THE HOUSING SET-ASIDE FUND BALANCE FOR THE FIRST TIME HOMEBUYER PROGRAM SUMMARY AND RECOMMENDATION Due to the strong demand for the low interest down payment/closing cost loans under the City's First Time Homebuyer Program, staff recommends that the Redevelopment Agency authorize by resolution a budget amendment for an additional appropriation of $150,000 in Set Aside Funds for the program. BACKGROUND Analysis The City of San Leandro's First Time Homebuyer (FTHB) Program offers low interest down payment/closing cost loans to assist qualified low-and moderate- income borrowers with the purchase of their first home. Eligible units include single-family homes, townhouses and condominiums. Borrowers must be first time homebuyers who have not owned their principal residences within the last three years. The household's combined income must be at or below 120% of the area median income, adjusted by household size, as set by the U.S. Department of Housing and Urban Development (HUD) each year. The maximum City FTHB loan amount is $30,000. The term of the City's loan is 20 years with a fixed interest rate of 3%. The loan repayment is deferred for the first five years with no interest accrual during that period. Payments begin in the sixth year and continue through the end of the 20-year term. The buyer must repay the loan if the property is sold, transferred, refinanced to take cash out, or converted to rental property. Homebuyers who earn less than 80% of the area median may choose to defer repayment of loan and accrued interest until sale or transfer of the property, refinancing for cash out, or conversion to rental property.