city of atascadero, ca - affordable housing short sale policy

LWC was hired by the City of Atascadero to create a Short Sale Provision in the City’s Moderate Income Affordable Housing Program (MIAHP). The MIAHP was created in 2005 as an equity-sharing program intended to create home ownership opportunities for moderate-income households. After the subsequent economic recession and drastic changes in the housing market, the City determined that a Short Sale Provision was necessary to clarify how the City will address situations in which  households are facing foreclosure due to extenuating circumstances.

LWC researched the major factors and conditions contributing to MIAHP participants’ housing situations, fiscal impacts of the Provision, and major policy considerations. The team provided the City with three alternative policies and an analysis of the major advantages and disadvantages of each option.  Ultimately, the City adopted a Provision that provides program participants facing foreclosure with the opportunity to petition for full or partial relief of the amount owed to the City under the Program.