Acting on the recommendation of the city's affordable housing subcommittee, the City Council this week approved changes to Simi's First Time Homebuyer's Assistance Program due to declining housing prices and the overall poor condition of the real estate market.

Although the new, renamed Affordable Unit Acquisition Program will still offer down payment assistance to incomequalifying firsttime homebuyers, the altered program eliminates median to moderateincome applicants in order to assist a larger percentage of lowincome homebuyers.

According to Ventura County housing standards, a lowincome family of four can make no more than $68,550 a year. Through the revised program, this low-income household can receive a shared appreciation second trust deed loan from the city for up to $200,000.

The new program is aimed at helping the city achieve statemandated fair-share housing goals, which require cities to plan for housing for every income level.

According to the Regional Housing Needs Assessment, the city must plan for the development of 3,383 units by June 30, 2014. Of those units, 754 must be for very low-income families and 605 must be for low-income families.

The restructured program will increase the longterm affordability of units in the city by placing a 55-year low-income resale restriction on properties purchased under the program.

This will guarantee the city will have affordable units in the future by turning existing homes, including those that have fallen into foreclosure, into affordable stock that will give the city RHNA credit.

According to a staff report, median- and moderate-income buyers had been using the old program to take advantage of falling property prices and purchase single-family detached homes or larger condominium units that they would ordinarily not be able to afford as first-time buyers.

"I think it's turning a negative into a positive," Councilmember Steve Sojka said during Monday's council meeting. "There's a foreclosure problem in every community."

Rob Bruce, deputy director of housing and special projects for the city, told the Acorn in August that in the current housing market, median and moderateincome families will be able to get into a unit without assistance from the city.

He added that these households would not be interested in the new program, which limits the resale price of a unit.

Because a majority of the homes purchased through the new program will be 20 to 30 years old, they are likely to need improvements in order to bring them up to a level that low-income families can afford to maintain.

City staff have made revisions to the Housing Quality Standards to ensure that the appliances, plumbing and electrical systems in older units are in good working condition.

The city plans to restore the First Time Homebuyer's Assistance Program when the housing market recovers, according to a staff report.

Residents interested in applying for assistance under the new program can call the city's housing division at (805) 583-6853. Applications will also be made available on the city's website, www.simivalley.org.