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Personnel Appeals Board. September 1, 1989. This term will expire on On motion by Mrs. Gleason, Mr. Richard Jennings was unanimously reappointed and Mr. William Finley was appointed to fill an unexpired term on the Piedmont Virginia Community College Board. Mr. Jennings' term will expire on June 30, 1990 and Mr. FinleyJs term on June 30, 1989. Mr. Barnes nominated Mr. Michael Bednar to the Planning Commission. Dr. Hall nominated Ms. Linda Bowen to the Planning Commission. Mr. Towe nominated Ms. Susan Lewis to the Planning Commission. Mr. Bednar and Ms. Bowen were unanimously reappointed and Ms. Lewis appointed to four-year terms on the Planning Commission. These terms will expire on August 31, 1990. On motion by Dr. Hall, Mrs. Elizabeth Trimble, Mr. Boyd Tinsley, Mr. Stephen Campbell, and Mr. David Toscano were unanimously reappointed and Ms. Rheva Williams and Mr. Edward Strickler appointed to three-year terms on the Social Development Commission. These terms will expire on August 31, 1989. STAFF REPORT: DOWNPAYMENT/CLOSING COSTS ASSISTANCE PROGRAM Mr. Louie Chapman, Assistant City Manager, stated that the purpose of the program was to assist moderate income persons purchase a home who had the ability to pay monthly but did not have a downpayment. Mr. Chapman stated that the City had been concerned with the trend away from owner occupied housing and hoped that the program could help reverse the trend. Mr. Chapman stated that the program would apply to single family dwelling units which were a first time purchase for VHDA eligible families. Mr. Chapman stated that the program would provide up to $4,000 for families, with a requirement that families provide a minimum of $500 of their own money. Mr. Chapman presented two options for the program: 1) A fully deferred payment loan, with 1/30th of the principal amount forgiven for each year of occupancy and the entire amount forgiven after 30 years of residence in the same property. A four percent interest rate would be applied to any unforgiven portion of the loan; and 2) A deferred loan which would require no payments or interest if the property is resided in for 30 years but the principal amount would be required at the end of the 30 year mortgage period. This option would require the principal. and a four percent interest rate be paid if the property is sold, vacated or transferred before the end of 30 years. Mr. Chapman stated that persons receiving assistance under the program would not have the ability to seek private mortgage insurance, though FHA and VA insurance would be available. Mrs. G!eason stated that her preference would be with option one. Mr. Barnes stated that he preferred option two because it strikes a balance between providing assistance and giving an outright gift. Mr. Towe stated that he preferred option two. Dr. Hall made a motion to approve option one of the Downpayment and Closing CoSts Assistance Program. Mrs. Gleason seconded the motion.