8F Consent 2012 0702 - Laserfiche WebLink

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File Number: 12 -335 refinancing that will assist a lower income homeowner to achieve a more affordable first mortgage. During the recent economic downturn, there have been occasional inquiries about cash out refinancing for loan recipients facing potential emergency situations or the need to make home improvements. This case -by -case flexibility may be especially helpful for eligible homeowners with more substantial home repair needs beyond the $5,000 grant now that new rehab loans are no longer available. • Allow Community Development Director the discretion to subordinate the homeowner's existing City rehab loan below second position: This change also applies only to homeowners with existing rehab loans only. While staff will continue to maintain the City's rehab loan at second position when a loan recipient is seeking refinancing and subordination, the Community Development Director should have authority and flexibility to subordinate at a lower position in order to help the homeowner secure the most optimal financing opportunities to help him /her address documented need or hardship reasons. Previous Actions • City Council approved revisions to the Owner - Occupied Housing Rehabilitation Program on September 2, 2003. Committee Review and Actions • City staff presented several of the above recommended program changes to the City Council Business and Housing Development Committee on September 9, 2010. Environmental Review Because the City's Housing Rehabilitation receives federal CDBG funds, staff has completed the required National Environmental Protection Act (N EPA) review for the program to begin operation by July 1, 2012. Fiscal Impacts The proposed changes to the Housing Rehab Program will have no fiscal impact on the FY12 -13 City Budget. ATTACHMENTS Attachment A: 2012 Income Limits for San Leandro PREPARED BY: Tom Liao, Planning and Housing Manager, Community Development Department City of San Leandro Page 3 Printed on 612612012