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6.1 D <br /> Page 5 <br /> 2. The City Council and the Redevelopment Board have also authorized a program for <br /> financial assistance to First Time Homebuyers who are low income. The goal of the <br /> program is to promote affordable ownership housing opportunities for low-moderate <br /> income persons. <br /> From time to time, the City and/or Redevelopment Agency may receive requests to <br /> subordinate their interest to new financing as homebuyers seek to obtain lower interest <br /> rates. First Time Homebuyers are required to offer their units to the Redevelopment <br /> Agency under a First Right of Refusal requirement. <br /> Under these conditions, staff will provide the Committee with a financial profile of the <br /> homebuyer seeking resale or refinancing, or new homebuyers seeking to purchase <br /> under the Redevelopment Agency's first right of refusal provision. The Financial Profile <br /> will indicate whether a potential buyer is a good risk for the program, or in the case of <br /> refinancing, whether there will be a reduction in equity or increased risk to the City or <br /> Redevelopment Agency. <br /> Section 1.4 Duties <br /> The duty of the Committee will be to review and approve applicatians for housing <br /> improvement loans, requests for subordination, or first time homebuyer purchase loans <br /> after they have been prepared and processed by staff, under the following guidelines. <br /> 1. Analyze the credit information and data to assess the applicant's ability to <br /> assume the loan requested; <br /> 2. In the case of fixed incomes, assess whether the loan should be deferred, and if <br /> so, for what term, and amount of interest; <br /> 3. Assess collateral issues which are presented by individual situations and needs; <br /> 4. Review any defaults in loan payments and recommend or determine appropriate <br /> course of action, as applicable; and <br /> 5. Analyze subordination requests and evaluate the City's risk where senior liens <br /> and reduced equity may impact financing provided by the City. <br /> Finally, the Committee will recommend future changes to the Home Improvement <br /> Program operating procedures to the City Council. <br /> 2 <br />