RRA - Approval of Minutes - 10-27-98 NOT OFF;Thnr, ..r<,L,,DT
BY TEE iOSr 1E."D NOL[:.
DEVELOPMENT CORP0i2n
MINUTES OF THE REGULAR MEETING
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
OCTOBER 27, 1998
The Regular Meeting of the Rosemead Housing Development Corporation was called to order by
President Bruesch at 7:41p.m. in the Conference Room of City Hall, 8838 E. Valley Boulevard,
Rosemead, California.
The Pledge to the Flag and Invocation were waived as having been completed during the
meeting just adjourned.
ROLL CALL OF OFFICERS:
Present: Directors Clark, Imperial, Taylor, Vice-President Vasquez, and
President Bruesch
Absent: None
APPROVAL OF MINUTES: SEPTEMBER 9, 1998 -REGULAR MEETING
MOTION BY VICE-PRESIDENT VASQUEZ, SECOND BY DIRECTOR TAYLOR
that the Minutes of the Regular Meeting of September 9, 1998, be approved as submitted.
Vote resulted:
Aye: Bruesch, Vasquez, Clark, Imperial, Taylor
No: None
Absent: None
Abstain: None
The President declared said motion duly carried and so ordered.
1. APPROVAL OF REVISIONS TO GUIDELINES FOR FIRST-TIME
HOMEBUYER PROGRAM
Don Wagner, Assistant City Manager, presented the staff report.
Steve Copenhaver, GRC Consultants discussed some of the changes proposed such as an
"equity sharing" formula that would be in effect upon the sale of the home. Mr. Copenhaver
explained that the 28 applicants that have qualified under this program, does not necessarily mean
that they will be approved by the bank for the loan itself
Director Taylor requested clarification of the current guidelines which uses income based
on the household's 1997 income and the recommended change of annualizing current income for
the next 12 months as income may possibly change from year to year.
Mr. Copenhaver cited an example whereby an applicant used their last full tax year as
income and upon their submittal of income information to the bank, their income was higher
because they used their current income- which multiplied by 12 months, turns out to be higher
than their last full year.
Mr. Taylor clarified that if they are earning a higher income, then they would better
qualify. Mr. Taylor requested verification that out of the 28 applicants, 70% do not qualify?
Mr. Copenhaver responded that that is unknown at present as not all of them have found
homes yet; however, the applicants vary in their debt obligations. Mr. Copenhaver stated that by
broadening the program to install a deferred payment program whereby payment would not begin
until the home is sold, would allow more Rosemead renters to become homeowners.
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President Bruesch stated that a person with a heavy debt load would not be able to qualify
for a loan and that the banks are looking for a person that is relatively debt free.
Mr. Copenhaver stated that the crisis is for people in that low income bracket to be able to
come up with sufficient equity.
After further discussion, the Corporation agreed to defer this item to the next meeting.
Director Taylor asked for clarification of Page 2. of the section which states that an
applicant is overqualified and the paragraph that refers to households that appear to have little
potential for income growth.
There being no objection, the President deferred this item to the next meeting.
2. MATTERS FROM OFFICIALS -None
3. ORAL COMMUNICATIONS FROM THE AUDIENCE ON HOUSING
DEVELOPMENT MATTERS -None
4. ADJOURNMENT
There being no further action at this time, the meeting was adjourned at 7:45 p.m. The
next regular meeting is scheduled for November 10, 1998, at 7:00 p.m.
Respectfully submitted: APPROVED:
Corporation Secretary PRESIDENT
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