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Camarillo reports 16 loans from down-payment assistance program; council hears repayment concerns
Summary
City staff reported that the Camarillo Workforce Down Payment Assistance Program has issued 16 loans using about $782,000 in PHA funds; loans are up to $50,000 at 3% simple interest for 15 years and the program is structured as a revolving loan fund. Council asked about repayment risks and program administration.
City staff provided an update on May 27, 2026, reporting that the Camarillo Workforce Down Payment Assistance Program (DAP) has processed 16 loans using roughly $782,000 in Permanent Local Housing Allocation (PHA) funds.
Mike, a city staff presenter, said the DAP issues loans of up to $50,000 to qualifying first‑time homebuyers; loans carry a 15‑year term and a 3% simple (non‑compounding) interest rate. The program’s income limit is set at 150% of area median income (AMI); Mike said that figure for a family of four is $196,950.
“We received just over $782,000 in PHA dollars,” Mike told the council. “That allowed us to process a total of 16 loans.” He said the program is a revolving loan fund: repayments returned through sale, cash‑out refinance or at the 15‑year maturity will be recycled to assist future buyers.
Mike said nine of the loans were used to purchase income‑restricted units (including townhomes in the Williams Homes project and Habitat for Humanity units at 2800 Berry Street) and that 11 of the 16 loans went to households that either live or work in Camarillo. He added that staff handled many of the applications directly after the city assumed program management from a consultant that had earlier received applications but issued no loans.
Several council members raised concerns about repayment timing and borrower capacity to repay a large principal balance after 15 years. Vice Mayor Martinez Bravo said she worried that the $50,000 principal due at maturity could be difficult for borrowers to satisfy and asked whether alternative repayment options were available. Mike responded that borrowers may make voluntary earlier payments, the 3% rate is intentionally low to preserve purchasing power, and staff will work case‑by‑case with borrowers who experience repayment difficulty.
Council members also asked about program volume and results; Mike said the city reviewed 40 applications and issued 16 loans since the city took over program administration.
The presentation closed with council members commending staff and beneficiaries and urging continued outreach and monitoring of repayment risk. No formal council action was required beyond receipt of the report.
