The City of Alhambra sponsored First-Time Homebuyers Program provides up to $75,000 in down-payment assistance and $15,000 for home rehabilitation.

Sponsored by the City of Alhambra

1. Eligibility for the HOME First-Time Homebuyer Program will be based upon the following eligibility criteria:
   a) Must be a resident of the City of Alhambra
        for two consecutive years at the time of
        application.
   b) Must be a United States Citizen or
        Legal Resident.
   c) Have at least 2% of the down payment money
        based upon the purchase price of the house to be
        bought.
   d) Have not owned any real property with the United States with the past three years
   e) The assisted property must be the Buyer's principal place of residence.
    f) The purchased property must be located within the City of Alhambra.
   g) The property must remain affordable for 20 years or, if new construction, for 25 years.
   h) Meet additional regulatory requirements of the HOME Program, the City of Alhambra
        and participating lenders, as set forth in a Policies and Procedures Manual detailing
        Program requirements, guidelines and processing of prospective applicants.
   i) Down-payment assistance of $75,000 plus additional $15,000 for home repairs if
       needed.
    
2. Combined gross household income must be 80% or below the Los Angeles County Median Income:
   

    

   Household Size	1-Person Household	2-Person Household	3-Person Household	4-Person Household	5-Person Household	6-Person Household	7-Person Household	8-Person Household
   Gross Income	$41,450	$47,350	$53,300	$59,200	$63,950	$68,650	$73,400	$78,150

   
   

3. The HOME guidelines impose statutory limitations on the value of assisted properties. The value of the property may NOT exceed 95% of the median area purchase price as determined by the U.S. Department of Housing and Urban Development (HUD). For the City of Alhambra, that limit is $374,500 for Townhomes and Condominiums and $508,000 for Single Family Homes.
    

4. After 20 years, the loan will be forgiven.
       

5. The assistance provided may range from augmenting the initial 2% required by the Applicant to lower the total amount to be borrowed utilizing funds for closing costs, abating lead-based paint and asbestos hazards on the property, rehabilitation or any combination thereof.
     

6. The assistance provided by the City of Alhambra through its HOME-funded First-Time Homebuyer Program shall be evidenced by a Promissory Note detailing resale restrictions, and recapture by the City of Alhambra for the capital outlay to assist the Applicant in purchasing the home. This Promissory Note will be secured by a Trust Deed junior to the initial First Trust Deed provided by the lender participating in the initial buying of the property.
       

7. The recapture provision becomes effective when any one of the following criteria is met:
   a) The Owner sells, transfers or assigns title to the home;
   b) The Owner does not utilize the property as the principal place of residence;
   c) The Owner refinances or prepays the loan before 20 years.
       

8. The recapture basis is determined by HOME Program guidelines that require the selection of a Program Resale Provision. The method of the Resale Provision to be utilized by the City of Alhambra is the "Ongoing Commitment to a First-Time Homebuyer Program." The implementation definition of this option is that the City of Alhambra will recycle the "Net Proceeds" of any Recapture into the reinvestment of assisting another qualified First-Time Homebuyer to obtain a home.
     

9. Resale conditions include an Equity Sharing Provision in which the City of Alhambra will also receive a share of equity if the unit is sold or the loan become otherwise due and payable within the initial 20-year period. To discourage sales during the first five years of home ownership, the City's share of equity is 75% of equity accrued. If the unit is sold after the first five years, the City's share of equity is based upon the recapture table below:
   a) First 5 years -- 75%
   b) Years 6 through 10 -- 50%
   c) Years 11 through 15 -- 25%
   c) Years 16 through 20 -- 10%
   d) After 20 years -- 0% (Equity sharing terminates)
     

10. Each qualified Applicant will be required to attend an intensive counseling workshop focusing on the budgeting process to meet monthly housing cost needs, basic maintenance and landscaping needs for maintaining the home and duties and responsibilities of home ownership. This workshop and continued montoring will be a method to help the First-Time Homebuyer to maximize the opportunity to continue a successful ownership long after the City of Alhambra's initial assistance has ended.
      

11. Each Buyer will be obligated to the conditions that will require the maintenance of the property, particularly with regard to the exterior appearance of the property and the commitment not to violate the code enforcement standards of the City of Alhambra.

The First-Time Homebuyer Program funded by the HOME Program has the ability to help Alhambra families that rent to become homeowners, a critical aspect of establishing a better and stronger neighborhood. It allows eligible families to develop a stake in their homes and, in turn, the community. Another benefit is to increase the total affordable housing stock available to residents of the City of Alhambra.