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Civil grand jury urges higher price caps, reinvestment for down‑payment assistance fund
Summary
The civil grand jury recommended raising maximum sales‑price caps for the Down Payment Assistance Loan Program (DALP), putting $3.4M now available back into community loans, and considering a new housing bond; the Mayor’s Office of Housing signaled support and study of an increase.
The civil grand jury presented its review of the Down Payment Assistance Loan Program (DALP), part of the Proposition A affordable housing bond passed in 1996. The grand jury concluded the program has operated largely fairly but is constrained by maximum sales price limits that are now too low for the local market.
The report noted 293 loans have been made since the program’s inception with an average loan around $61,000 and no defaults; the grand jury said $3.4 million in repayments is currently available to re‑lend but cannot be dispersed until the mayor’s office raises the maximum sales prices. The jury recommended increasing the allowable sales price by at least 15% to conform to market rates and urged efforts to allocate the available funds promptly into the community.
The Mayor’s Office of Housing accepted the recommendation in principle and reported it has drafted a study to determine a precise increase (it may exceed 15%), is pursuing marketing and lender outreach to underserved neighborhoods, and noted the program is an "evergreen" revolving fund that returns repayments to new borrowers. The city acknowledged prior confusion about annual reporting requirements and indicated it will work with the board on appropriate reporting cadence.
The committee asked the clerk to prepare formal responses to the civil grand jury; no further hearings were scheduled specifically for DALP beyond follow‑up reporting and possible future board action on bond measures or program marketing.
