3B Public Hearing 2010 0419 - Laserfiche WebLink

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Even moderate-income households may have difficulties becoming homeowners because of the high cost of ownership housing in the County. Initial down payment and closing costs, as well as high on- going mortgage and other costs, are significant barriers to homeownership. Homebuyers with no equity windfall from the sale of a previous home, meanwhile, are not able to accumulate enough money for a down payment on a house. Furthermore, tighter underwriting standards and lack of available financing have become increasingly problematic for potential homebuyers in today's housing market. Obiectives 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), the City's Inclusionary Zoning Ordinance, and referrals of eligible homebuyers 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 homebuyer seminars guide new homebuyers through the home buying process making them more informed homebuyers, and thus more successful homeowners. The program is funded with Redevelopment Housing Set-Aside funds. Over the next five (5) years, two (2) seminars will be held annually with an expectation that thirty (30) households will attend annually. This will result in at least ten (10) seminars and 150 households attending for the 2010-2014 Consolidated Plan period. 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 fifteen (15) low- and moderate-first time homebuyers in the next five (5) years. Inclusionary Zoning Ordinance ^ The Inclusionary Zoning Ordinance, which the City adopted in December 2004, requires that developers of new rental and ownership housing City-wide make at least fifteen percent (15%) of the units affordable to low- and moderate-income households. Projects with less than six (6) ownership units may instead opt to pay an in lieu fee. Over the next five (5) years, the City anticipates creating fifteen (15) affordable ownership units through inclusionary zoning. Housing and Community Development Strategic Plan - FY 2010-2014 City of San Leandro Page 11