Menlo Watch: Council may commit $3.5 million to home-loan program Menlo Watch: Council may commit $3.5 million to home-loan program (January 12, 2005)

About $3.5 million would be dedicated to loans for first-time homebuyers in Menlo Park if the City Council decides on January 11 to follow a recommendation by the city's Housing Commission.

The money would come from the city's BMR (below market rate) housing fund, which currently contains $4.6 million, accumulated mainly from developers who paid in-lieu fees rather than building affordable housing units as part of their projects.

The council designated $2.8 million of that money in the fiscal year 2004-05 budget for creating a housing project, but never defined a specific project, Gretchen Hillard, the city's housing and redevelopment manager, wrote in a staff report. So the council asked the Housing Commission to come up with a "constructive use" for the BMR fund, she wrote.

Outside of the current $4.6 million in the BMR fund, $982,000 has already been designated for first-time home loans, Ms. Hillard wrote. So the council's action would bring the loan program to about $4.5 million.

Loans are granted to homebuyers whose level of income qualifies them for below-market-rate housing. Single loans are limited to $75,000, and an average of 4.4 loans have been granted annually over the past 10 years, Ms. Hillard wrote.

During the first five years, the loans require no payment and have zero percent interest.

Menlo Park housing prices, though, are often so high that people often cannot afford to buy in the city, even with such a loan, she wrote.

The January 11 meeting begins at 7 p.m. in the council chambers at 701 Laurel St.
Ten vie for seat on commission

Talk about healthy competition: Ten Menlo Park residents have applied for a single opening on the city's Planning Commission.

The lucky applicant is scheduled to be announced on Tuesday, January 11, when the City Council is expected to vote on the appointment. The council was set to interview the candidates on January 10.

The position became available when commissioner Kelly Fergusson was elected to the council. Now the field of candidates includes two of her former colleagues, Patti Fry and Stu Soffer, who previously served on the commission but were not reappointed last year when their terms expired.

The other applicants are Vincent Bressler, J. Michael Gullard, Roscoe Jennings, John Kadvany, Elizabeth Lasensky, John A. O'Malley, Henry L. Riggs and Richard G. Stevens.

The January 11 meeting begins at 7 p.m. in the council chambers at 701 Laurel St.
Council meeting is canceled

The Menlo Park City Council has canceled its meeting for Tuesday, January 18, the day after Martin Luther King Jr. Day. Meetings will resume on January 25.

E-mail a friend a link to this story.