Council balks at assisting middle-income buyers

An update to Yorba Linda's mortgage assistance program to include moderate-income buyers of housing units to be built on land approved for higher density development by voters in 2012 didn't pass muster with City Council members.

The proposal, outlined in a report from Pam Stoker, the city's economic development manager, would have provided down-payment assistance for up to 10 percent of a unit's sales price, funded by contributions to the program by the developers of individual projects.

Loans would be “key to the moderate-income buyer who qualifies for a home loan but may not have the entire 20 percent down payment saved” by bridging any gaps the borrower may have for making a typical down payment, noted Stoker.

City costs would include 8 to 12 hours a month of staff time for a loan package review for qualifying applicants, document preparation, annual monitoring, subordination and payoff demands, according to Stoker.

That was a sticking point for Councilman Craig Young, who removed the issue from council's “consent calendar,” which packages routine matters for a single vote, for separate discussion.

Young estimated the city costs at between $80,000 to $120,000 over a 15-year period and double that for 30 years. He said he'd rather see funding assistance go toward the housing needs of very low- and low-income households instead.

His council colleagues agreed on a 5-0 vote to direct staff to bring back other methods to invest the funds that might help achieve state-mandated lower income housing numbers.

Interestingly, under the rejected program the down payment loans would have been forgiven if the borrower remained in the home for 15 years or longer. However, for homes sold before 15 years of residence, the loans were to be fully repaid, along with an equity share percentage.

Projects on parcels voter-approved for higher densities include, so far, three with conditions tied to developer contributions: 51 Brandywine units south of the Nixon library, 80 Tesoro units at the westend on Yorba Linda Boulevard, and 55 City Ventures units at Wabash Avenue and Rose Drive.

A prior mortgage assistance program existed for 15 years before the state-mandated dissolution of all redevelopment agencies, including Yorba Linda's that operated 1983-2012.

On another matter, council members accepted Mayor Gene Hernandez's appointments to 15 county and regional panels for 2015, including three that pay appointees to attend meetings, usually monthly.

Young will continue at the Transportation Corridor Agency ($120 per meeting plus 56 cents a mile), Hernandez at the county Fire Authority ($100 per meeting) and Peggy Huang replaces Young for a two-year term at the county Vector Control District ($100 per meeting).

Young and Mark Schwing continue on the city's Finance Committee that reviews accounts payable and other fiscal items prior to presentation at council meetings.