Targeted Down Payment and Closing Costs Assistance Program November 3, 2009 Housing and Economic Development Committee Jay Chapa Director, Housing and Economic Development Department

Current Program Household Size Maximum Income 1 $36,900 2 $42,250 3 $47,500 4 $52,800 5 $57,000 6 $61,250 7 $65,450 8 $68,250 Provides Down Payment and closing costs assistance up to $14,999 in targeted areas up to $8,500 in non-targeted areas Must be a first time home buyer 5 year affordability period Earning 80% or less of Area Medium Income Owner Occupied

Proposed Program Provide down payment and closing costs assistance of up to $25,000 in areas targeted for new infill construction Proposed Areas: Terrell Heights Diamond Hill Stop Six ( Burger Street Area) Additional areas added as infill projects begin for those locations

Target Area

Target Area Diamond Hill 3601 Hardy Street Diamond Hill Jarvis High School

Burger Street

Proposed Program Additional Terms Must be a first time home buyer Earning 80% or less of Area Medium Income Owner Occupied Household Size Maximum Income 1 $36,900 2 $42,250 3 $47,500 4 $52,800 5 $57,000 6 $61,250 7 $65,450 8 $68,250

Proposed Program Additional Terms 10 year affordability period Enforced by restrictive covenant in Deed of Trust Sale, assignment or transfer of property during first 10 years requires immediate repayment of assistance After year 5, loan will be forgiven at a rate of 1/60 per month No cash to Borrower Loan closing at title company

Recommendation/Next Steps Authorize Proposed Program as presented Approve M&C to create program and allocate $275,000 for down payment and closing costs assistance in Targeted Infill Areas