The Ceres City Council indicated that it is interested in setting up a first-time home buyers program like the one in Turlock.

Economic Development Manager Julian Aguirre said the program would be for low- to moderate-income households buy their first home. He noted that Turlock’s program assists with gap financing – the difference between the amount of the primary loan for which an income eligible applicant qualifies, and the purchase price.

“This is different than our normal historical down-payment assistance program,” said Aguirre. “This is unique in a way that we can utilize either a home through the Consortium, or the city of Ceres does have reuse funds that we can utilize for first-time home buyers to provide the down payment assistance.”

Aguirre recommended paying a third-party agency to help with underwriting, documentation and monitoring.

He said Ceres has had “very successful” first-time homeowner programs dating back to 2007 that “significantly helped several homeowners.”

“We’ve recaptured close to $300,000 of those loans. I think there’s an outstanding of maybe a little over $300,000, but those yet have to mature or those homeowners continue to still be in their home. It is a great program and it doesn’t have to be necessary for brand-new housing development, so it can be for current housing that’s within the city of Ceres as long as they are first-time homeowners.”

Mayor Javier Lopez said he believed the program is great and would help counter the higher interest rates and cost of homes than were available in 2008.

Councilwoman Cerina Otero, however, stated her believe that the city’s General Fund can’t afford one full-time clerical staff member or the hiring a third party to oversee the program.

Aguirre said that the city can use 10 percent of the reuse fund for administrative costs but “it won’t cover 100 percent of it.”

“I think this is a great program,” said Otero, “and I know that the city of Ceres has had in the past but my only concern right now is the financial status that we’re currently in. The fact that we had to make cuts to positions that were already existing, we have unfunded positions at the police department, and I just don’t think we can afford to pull any more funding out of the General Fund to support this program. And I know there are a lot of pros out there that will that help people with assistance, especially first-time home buyers but right now I don’t know that we’re in the position to assist any further because it’s gonna impact the General Fund.”

In past years the city of Ceres partnered with Turlock in securing and allocating funds to assist first-time very-low- and low-income home buyers with their down payments.

Councilwoman Rosalinda Vierra asked how far a program might help residents and Aguirre noted that there is no specific allocation to the cities.

He said the money would come from a “pot” managed by the Stanislaus HOME Consortium.

“Let’s say there’s a million dollars left in that pot. That $1 million will be spread out through the eight cities on a first-come, first-served basis. So the first one in with their application will be approved and will be able to draw until that money is no longer available.”

Vierra said she didn’t feel the financial burden would be significant. Aguirre stated that the city would only have to pay a third-party or another city for administering the loans made by Ceres and wouldn’t be paying someone full-time if Ceres has no no or a minimal amount of loans.

At the end of the discussion, the mayor, Vierra and Vice Mayor Daniel Martinez indicated they want the city to pursue the program while Otero and Councilman James Casey remained opposed.