Salinas committee forwards first-time homebuyer down-payment assistance program and $1.03 million in PLHA funds to City Council

The Housing and Land Use Committee on an affirmative vote forwarded a proposal to establish a first-time homebuyer mortgage down-payment assistance program and to appropriate $1,034,137 in Permanent Local Housing Allocation (PLHA) funds from allocation years 2021 and 2022.

Vincent Montgomery, planning manager for the Housing and Community Development Department, told the committee the program is designed "to expand access to home ownership for moderate, income households and to complement the city's existing rental assistance and housing stabilization initiatives." He said staff prepared preliminary draft guidelines and coordinated with internal and external partners and regulatory reviewers.

The program would offer eligible first-time buyers a low-interest, deferred-payment loan to assist with down payment and nonrecurring closing costs. Assistance would be capped at $125,000 or 17% of the purchase price, whichever is less; the loan is structured as a 30-year deferred-payment…