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.