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

2. 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

3. 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

4. Target Area

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

6. Burger Street

7. 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

8. 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

9. 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