8D Consent 2008 0107 - Laserfiche WebLink

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First-Time Homebuyer Program Appropriation 2 January 7, 2008 As of December 31, 2007, the City FTHB Program has approved 11 loans totaling $330,000. This is in contrast to the last two fiscal years in which the FTHB Program averaged only 2 approved loans each year. At the start of the fiscal year, July 1, 2007, there was approximately $379,000 in FTHB loan funds available. The current FTHB Program loan balance is $49,000, which is only enough for one more $30,000 loan. While there are no current applicants in the pipeline awaiting approval for a City FTHB loan, staff recommends an additional $150,000 in Set Aside Funds be appropriated for FTHB loans to help meet any additional demand for the remainder of this fiscal year. The additional $150,000 will provide for at least another 5 loans. The success of the City FTHB Program this year stems primarily from a large number of first time homebuyers at The Willows condominiums using the City loans. The Willows, located at 700 Fargo Avenue, is converting the existing 122 apartments into condos and is providing a total of 18 affordable ownership units (11 moderate and 7 low income units) as required under the City's Inclusionary Housing Ordinance. Of the 1 I FTHB loans approved to date by the City, 9 were for the following unit types at The Willows: 6 low income units, 1 moderate income unit, and 2 market rate units. One of the 1 l FTHB loans approved also helped a qualified household purchase a low income unit, required under the City Inclusionary Housing Ordinance, at the Cherry Glen townhome development on Washington Avenue and Springlike Drive. Current Redevelopment A~ency Policy The City First Time Homebuyer Program is included in the San Leandro Redevelopment Agency 2004-2009 Implementation Plan as a program to help the City/Agency achieve its affordable housing goals. Previous Redevelopment Agency Action(s) On September 3, 1996, the Redevelopment Agency adopted Resolution Number 96-31, a resolution approving modifications to the First Time Homebuyer Program. The resolution increased the maximum eligible income for first time homebuyer assistance from 110% of Alameda County median income to 120% of median as provided for in State redevelopment law. On June 16, 1997, the Redevelopment Agency adopted Resolution Number 97-13 to make further modifications to the program. The changes included: reducing the program assistance from 5% to 4% of the purchase price, collecting an annual participation fee from program lenders to increase the loan fund, shortening the loan repayment term from 30 to 20 years, allowing all loan repayment income to be added to the program budget, and requiring compliance with the City of San Leandro Community Standards Ordinance. On January 21, 2003, the Redevelopment Agency adopted Resolution Number 2003-002RDA to further modify the program. The changes included: increasing the maximum loan from $10,000 to $20,000, eliminating the requirement that limited the maximum loan amount to 4% of the purchase price, reducing the loan interest rate from 5% to 3%, and allowing the option of repayment of the loan amount and accumulated interest to be deferred conditionally for homebuyers whose income are 80% or less than the area median income.