MEETING DATE:
MAY 12, 2020
SUBJECT:
Title
RESOLUTION NO. 2020-8757 - APPROVING A BUDGET TRANSFER FROM THE SUCCESSOR HOUSING AGENCY FUND (250) TO THE CALHOME FUND (214)
Body
Recommendation
Recommendation
ADOPT a resolution approving a budget transfer from the Successor Housing Agency Fund (250) to the CalHOME Fund (214) to facilitate Down Payment Assistance Program (DAP) loans.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Good Governance
Relevant Department Goal
Continue to assist existing Mortgage Assistance Program (MAP)/Downpayment Assistance Program (DAP)/San Marcos Affordable Homeownership Program (SMAHP) homeowners and first-time homebuyers
Executive Summary
The City of San Marcos' Downpayment Assistance Program (DAP) is funded by the CalHOME Program and offers eligible first-time homebuyers a simple interest, deferred payment loan to assist with the purchase of a home within the City of San Marcos. The DAP loan must be used in conjunction with an original first, fixed-rate, fully amortized 30-year loan. The DAP loan provides gap financing between the first mortgage and the purchase price for the property in question.
Discussion
The DAP is subject to the availability of funds. In order to facilitate recent DAP transactions, a budget transfer from Successor Housing Agency Fund (250) to CalHOME fund (214) was deemed necessary.
This first transaction involves a SMAHP unit that currently has a DAP loan. The current unit owner's (Owner) DAP loan is approximately $60,000. Owner is selling to a new buyer (Buyer A) who has requested a DAP loan using, in effect, $15,000 of the Owner payoff money in a re-use manner.
The second transaction is a DAP loan for a different buyer (Buyer B). Buyer B is requesting a new DAP loan currently estimated at $45,000. After the deposit of the Owner payoff into Fund 214 (Cal HOME), enough money will be available to wire $45,000 to Buyer B at close of escrow.
The City ...
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