Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Down Payment Assistance topic
No spam. Unsubscribe anytime.
Council approves PLHA down‑payment assistance pilot with lottery, longer forgivable loan
Summary
The Ventura City Council voted 6–1 to amend and approve a Permanent Local Housing Allocation (PLHA) plan amendment to use the city’s 2023 PLHA award (~$235,000) to fund two down‑payment assistance loans for moderate‑income first‑time buyers, adding 90‑day outreach, a lottery selection, extending affordability to 30 years and converting loans to forgivable assistance.
The Ventura City Council on Feb. 3 approved an amendment to the city’s Permanent Local Housing Allocation (PLHA) plan to use the 2023 award year allocation—about $235,000—to fund two down‑payment assistance loans for moderate‑income first‑time buyers.
Staff presented the program as a locally administered down‑payment pilot that would target households earning between 81% and 130% of area median income (AMI) and would fund roughly $111,000 per household in a second trust deed loan. Under staff’s original proposal the loan would carry 2% simple interest and be forgiven only if the homeowner remained in the residence for a 20‑year affordability period. Staff said the funds would strengthen the city’s eligibility for other HCD programs such as CalHome and that HCD (the state Department of Housing and Community Development) must approve the final plan and all contracts.
During more than an hour of council questioning, members raised concerns about the proposed 20‑year repayment trigger, outreach and selection method, and whether the city should forgive or require repayment of the loan after the affordability term. Councilmember Schumacher pressed staff over the practicality of forcing borrowers on 30‑year mortgages to refinance or otherwise repay a $112,000 loan at year 20. Staff said the terms could be adjusted and noted other jurisdictions use different models, including forgiveness. The staff presentation included income examples, illustrative house-price math and administrative details such as a 5% administrative cap on the award year funds.
In a package of amendments offered on the floor, council voted to require at least a 90‑day outreach period; to select participants via a lottery (rather than strict first‑come, first‑served); to change the affordability term from 20 to 30 years to better align with typical mortgage terms; and to convert the loan structure to a forgivable loan (the city’s prior programs were forgivable loans, staff said). The motion passed 6–1; Councilmember Mcrenolds cast the lone no vote.
Staff said they will release a request for proposals for an administrator to manage applications, eligibility verification and monitoring. HCD approval of the city’s PLHA application and any final program details are required before funds are disbursed. Council directed staff to return with contract and program language consistent with the amendments.
