Pasadena programs for low-income buyers

Doug Willis, over at his Pasadena Realty Blog, reviews ways for low-income qualified people to save money in Pasadena. I recall hearing about the closing costs program before... I believe it was recently expanded:

Down Payment Assistance

Known as the Homeownership Opportunity Program, this option is available as long as the purchase price does not exceed $425,000 and offers down payment assistance in the form of a second trust deed up to $200,000 with a 45 year term. To sweeten the deal, interest and principal for the first 5 years are waived. Plus, the interest on the second trust deed may be as low as 1.5%. A purchaser has to make a minimum of a 3% down payment which can also be a gift and must be a first-time homebuyer. The critical factor is your ability to meet the qualification terms of the first loan. Also participants have to attend a special homebuyer education class.
Pasadena Inclusionary Housing

As you drive through town slowing down at the construction zones, you probably did not realize that some of those units being constructed are reserved for Low to Moderate Income Households as Affordable Housing. Before the City of Pasadena agrees to green light new development, the Developer has agreed to set aside 15% of the available units for this special program. Priority is given to eligible households that live and work in the City of Pasadena. I should also preface this paragraph by saying that other options are available to Developers if they choose not to set aside the required ratio of mandated units. They may offer a payment In-Lieu fee, may build other affordable housing off site, or may convey other land to the City. Each development project is different and may hinge on whether the developer was granted a density bonus as to the choice of action they pursue. Unlike the HOP (above), being a first time buyer is not a prerequisite for the program.