ADOPTED BUDGET RESOURCE ALLOCATION PLAN - City of ...

Project: 828100 First-Time Homebuyer Loans (81-120% AMI)
Origination Year: 2009-10
Planned Completion Year: Ongoing
Department: Community Development
Project Description / Scope / Purpose
Project Information Sheet
Type: Housing
Category: Special
Project Manager: Ernest De Frenchi
Fund: 70 Housing
Sub-Fund: 100 Housing Mitigation
Project Coordinator: Ernest De Frenchi
This project allocates $150,000 in Housing Mitigation funds for the First Time Homebuyer Program, to be used for down-payment assistance loans to eligible moderate-income households (at or
below 120% AMI, but above the HOME low-income "80%" AMI limit) during FY 2009/10 for purchase of eligible homes in Sunnyvale. For further details, please refer to the current First Time
Homebuyer Program Guidelines. This program, beginning in FY 2009/10, will incorporate the previous HPCC program, by providing priority to HPCC-eligible moderate income buyers applying
for the program.
Project Evaluation and Analysis
This project will be an ongoing program offered by the Housing Division to assist moderate-income households in purchasing their first home. Given current turmoil in the housing market and
difficulties in securing conventional first mortgages at this time, the program will be considered a success if it is able to make several loans in FY 2009/10. Loan volume is anticipated to grow in
subsequent years, as the housing and financial markets stabilize.
Fiscal Impact
This project will require an expenditure of $150,000 from the Housing Mitigation Fund in FY 2009/10. The funds will be expended by making deferred loans that will be paid back to the Housing
Mitigation fund upon the occurrence of certain events that trigger the maturity date, such as sale or transfer of the home securing the loan. It is anticipated that most of the loans will be paid back in
full in lump sum payments approximately 5-12 years after the loan dates, although the loan term is 30 years. This use of Housing Mitigation funds is consistent with city policy for use of the
Housing Mitigation Fund.
Project Financial Summary
Financial Data Prior
Actual
Project Costs
Revenues
Total
Transfers-In
Total
Operating Costs
Current 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Y11-Y20
2009-10
Total
Project
Life Total
0 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 1,500,000 3,150,000
0 0 0 0 0 0 0 0 0 0 0 0
0 0
0 0 0 0 0 0 0 0 0 0 0 0
0 0
0 0 0 0 0 0 0 0 0 0 0 0
0 0
First-Time Homebuyer Loans (81-120% AMI) 828100