City of Camarillo
CITY COUNCIL POLICY
Section: Community Development Date Adopted: February 12, 2020 Last Amended:
Subject: First Time Homebuyer Downpayment Assistance Loan Program
Number: 7.13 Page 1 of 2
PURPOSE
To provide first time homebuyers with downpayment assistance, for income -eligible households that have been selected to purchase a unit under the Affordable Housing Preservation Program.
POLICY
The First Time Ho mebuyer Dow npayment A ssistance Loan Program will be implemented according to the guidelines included in this policy.
A. Qualification of Borrowers
The City will provide downpayment assistance only to households that have been selected to purchase a unit under the Affordable Housing Preservation Program.
B. Downpayment Assistance Terms
Terms will include, but not be limited to the following:
1. Issued in a form of a loan.
2. Source of funding for the loan may include affordable housing funds, including but not limited to CDBG and other grant funding. City will not use general fund money to provide downpayment assistance.
3. Amount of assistance will be up to five percent of the purchase price of the unit.
4. The loan will have an interest rate of zero-percent.
5. No payments will be due during the term of the loan.
6. Term of the loan will be 55 years.
7. Loan is due and payable to the City at any of the following occurrences, whichever occurs first:
a. End of 55 year loan term.
Adopted February 12, 2020 Policy 7.13
Amended Page 2 of 2
b. Transfer of title of ownership.
c. Cash-out refinancing or home equity loan.
d. In the case of a default of any provisions specified in the Affordable Housing Agreement.
8. Promissory note will be required for the loan, and a Deed of Trust will be recorded securing the promissory loan to the title of the property.