Reso 2005-046 - Laserfiche WebLink

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Housing Needs Analysis showed that a household needs an nlcome of at least $110,000 to afford the median priced home, in the absence ofgovernment-sponsored homebuyer financing assistance programs. With the high cost of ownership housing, it is very difficult for even moderate-income households to become homeowners. The Califonua Association of Realtors reported that as of December 2004, only 14% of Alameda County households could afford to buy a home in the County which was down from 20% a year ago. Initial downpaytnent and closing costs, as well as high on-going mortgage and other costs, are significant barriers to homeownership. High rents in the area make accumulation of initial capital needed even more difficult. First-time homebuyers, who do not have the equity windfall from the sale of their previous home, face increasing costs such as high property taxes as a result of the inflated existing home sales prices. Households who might otherwise wish to remain in the County are forced to move to counties with more reasonable costs of living and end up increasing their work cormnute into the County. The residential migration out of the County reduces the region's economic vitality, adds to the jobs/housing imbalance, increases traffic congestion and exacerbates air pollution. For renter households who remain in the County and are seeking to becoming first time homebuyers, they must compete in a highly expensive and competitive housing market where demand far exceeds supply and face the prospect of homeownership being out of reach. Objectives Assist low and moderate income first-time homebuyers through the City's First Time Homebuyer Program (which includes free homebuyer seminars and a low interest second loan program), Inclusionary Zoning Ordinance and referrals of eligible homebuyer to the Alameda County's Mortgage Credit Certificate (MCC) Program. Accomplishments First Time Homebuyer Information Seminars ^ The City sponsors free homebuyer information seminars to interested first time homebuyers. The City understands that a well informed homebuyer makes a more successful homeowner. The seminar guides new homebuyers through the home buying process from start to finish. The program is funded with Redevelopment Housing Set-Aside funds. Two seminars will be held annually over the next five years with an expectation that 30 households will attend annually. First Time Home Buyers Program ^ The City's First Time Home Buyers Program provides low interest second loans up to $20,000 to qualified low and moderate income homebuyers. This program is funded with Redevelopment Housing Set-Aside funds. The program will assist approximately 151ow and moderate first time homebuyers in the next five years. Housing and Conununity Development Strategic Plan - F'Y 2005-09 City of San Leandro Page 11