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Federal NSP <br />November 17, 2008 <br />Page 5 <br />Further, a Redevelopment Agency funded Mortgage Assistance Program is <br />proposed in the form of a silent second in order to create more <br />affordable units and provide additional incentives for the homebuyer. <br />The guidelines of the loan program are described in Exhibit 3. <br />The Downpayment Assistance Program (Program No. 1) is intended for those <br />properties that are foreclosed or abandoned but do not need <br />rehabilitation. This program will be managed by City staff who will <br />work directly with the interested and eligible homebuyer and or <br />realtors. <br />The activities related to Program Nos. 2, 3 and 4 will be undertaken by <br />either non - profit or for- profit intermediaries. The entities will be <br />procured through a Request for Proposal (RFP) that will be distributed <br />to a broad range of consultants, non - profits, developers, etc. The <br />purpose of the RFP is to solicit and select intermediaries to provide <br />the complete range of services that will be necessary for the successful <br />implementation of Programs 2 and 3. <br />They will be selected based on their experience, resources and financial <br />capacity to effectively rehabilitate and sell properties to eligible <br />homebuyers. In an effort to leverage the NSP funds, the intermediaries <br />will be required to have a line of credit available for the acquisition <br />component. While it is foreseeable that one entity may have all these <br />qualifications, the City will also accept partnerships between entities <br />to meet the required services. <br />The intermediaries selected to implement the Rental Program (Program No. <br />4) will need to demonstrate their capacity and experience in the <br />acquisition, rehabilitation and long -term management of affordable <br />rental housing. In addition, they must have experience in leveraging <br />existing state and federal funds for affordable housing. Those selected <br />will be the best qualified to implement the program within the <br />legislated timeframe. The Rental Properties Program will meet the very <br />low - income (50 percent Area Median Income) obligation. <br />It is anticipated that up to three intermediaries will be initially <br />selected in order to ensure timely implementation of the program. <br />Thresholds will be identified for funding commitments to be made within <br />relatively short time periods (say six months) from contract execution. <br />Should they be unable to perform, then the City will have the ability to <br />terminate those contracts and select a new intermediary that has been <br />pre - qualified through the RFP process. We believe this to be the most <br />expeditious way in which to commit the program funds and achieve the <br />best results for the neighborhog 13T the property is located. The <br />