Transcript Department of Parking & Traffic

San Francisco Mayor’s Office of Housing &
Community Development
Inclusionary Housing Program
Below Market Rate (BMR)
Ownership Program Overview
Last Updated 05/26/14
1
Agenda
•
About the Program
•
About the Units
•
Program Qualifications
•
Restrictions on BMR Units
•
Application & Approval Process
•
Lottery Process
•
Sales Contract
•
Realtor Representation
•
Closing Documents & Process
•
Monitoring
•
Resale Process & Repricing
•
Financing (Lending) Rules
•
Downpayment Assistance
(Important Note: This PowerPoint is an informal overview only. Legal program rules are outlined in the City and
County of San Francisco Inclusionary Affordable Housing Program Monitoring and Procedures Manual 2013.)
3
Who Should/
Should Not Buy a BMR Unit?
Should:
People Seeking…
• Long-term stability
• Relief from rent
• A tax write-off
• A way to build credit
• A way to build assets
• An affordable mortgage
Should not:
People who…
• Want to own investment property
• Want to make a market rate profit when selling
• Want to pass property easily down through the family
4
Current & Upcoming BMR Ownership Units
As of 05/29/14
•
1645 Pacific Avenue (5 studio and two-bedroom units)
•
1501 15th Street (7 studio, one- and two-bedroom units)
•
8 Octavia Street (5 studio, one – and two-bedroom units)
See www.sfmohcd.org for information on these current and
upcoming BMR opportunities
5
About the Program
•
Named the San Francisco Inclusionary Affordable Housing Program
•
Became citywide law in 2002
•
One of San Francisco’s only middle-income ownership programs
•
Developers can pay a fee or qualify to provide affordable units onsite, offsite or dedicate
land in some areas
•
Governed by San Francisco Planning Code Section 415
•
Units restricted through a recorded Notice of Special Restrictions placed on each unit as
well as a silent second lien placed on each unit
•
Program rules implemented through the City and County of San Francisco Inclusionary
Affordable Housing Program Monitoring and Procedures Manual 2013 (called the
“Procedures Manual”)
6
About the Units
•
Most new BMR units priced to be affordable to a household at 90% of median income but available to
households up to 100% of AMI. (Older units have the same income target for pricing and qualifying.)
•
Resale restrictions and other recorded restrictions placed on unit and owner
•
Mostly condominium units throughout San Francisco
•
Evenly distributed throughout the building (except for top 3rd of building)
•
Proportional bedroom types to market rate units in building
•
Quality and finishings must be comparable to market rate units but need not be the same type, make or
model, etc.
•
Full access to amenities in the building
•
HOA dues same as market rate (and may go up beyond inflation)
•
Parking affects final sales price
7
About the Units: Pricing
Sample Pricing at 90% AMI 2014
►Studio: $218,546
►One bedroom: $252,462
►Two bedroom: $285,917
►Three bedroom: $319,602
(These are samples only. Final pricing is based on inputs at
the time of pricing and parking availability.)
8
About the Units: Pricing Formula
Pricing formula inputs:
•
Maximum income level for household that is one person more than the # of
bedrooms in the unit (except for SRO and studio units)
•
33% of income spent on housing (federal standard)
•
Actual HOA dues for the unit
•
Current property tax rate
•
Interest rate = 10-year rolling average of Freddie Mac 30-year rate
•
10% downpayment assumption (but only 5% is required under the
program)
9
About the Units: Pricing Formula
Sample Pricing Formula for Unit with Parking at 1080 Sutter Street
90% HUD Unadjusted AMI PRICING - WITH PARKING
Unit Number(s):
Monthly Condo Association Fee
HOUSEHOLD SIZE
MEDIAN INCOME @
MEDIAN INCOME @
ANNUAL CONDO FEE
TAXES @
INSURANCE (CONTENTS)
AVAILABLE FOR P+I
10 Year Average Interest Rate
SUPPORTABLE MORT
DOWN PAYMENT
INITIAL AFFORDABLE PRICE
ASSUMED BEDROOM SIZE
2 BDRM
90%
33%
1.188%
303
$536.46
3 people
$78,650
$25,955
$6,438
$3,245
$0
$16,272
5.24
10%
Final Price with Parking
$245,836
$27,315
$273,151
TWO BDRM
$281,151
$32,000 was subtracted and then $40,000
was added for the parking space addition
10
Program Qualifications
Qualification Check-list

First-time Homebuyer

Income & Asset Qualified

Qualified Household
 General Rules (i.e., anyone can be a household)
 Non-Student Household Rule

Correct Household Size:
 Household Size Determination
 Minimum Household Size
 Maximum Household Size

Occupancy Requirement

Title and Loan Requirements

First-time Homebuyer Workshop Requirement

Loan Preapproval Requirement
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Program Qualifications
• First-time Homebuyer
•
No interest in a housing unit for the past three years as of the
date of the application (and up to closing on the unit)
•
A “housing unit” is defined in Planning Code Section 415 as a
“dwelling unit” under the San Francisco Housing Code:
A “dwelling unit” is any building or portion thereof which contains
living facilities, including provisions for sleeping, eating, cooking
and sanitation as required by the Code, for not more than one
family.
•
Must not be on title for any housing unit at all, whether the unit is
one you live in or not (i.e. includes rental properties)
•
Some exceptions in Procedures Manual
12
Program Qualifications
• Income & Asset Qualified
Common Income Maximums for Most New BMR Units
(Please refer to each posting for the specific income target for each unit)
100% of Maximum Income by Household Size derived from the Unadjusted Area Median Income
(AMI) for HUD Metro Fair Market Rent Area (HMFA) that contains San Francisco
(Many older resale units and many new units)
90% of Maximum Income by Household Size derived from the Unadjusted Area Median Income
(AMI) for HUD Metro Fair Market Rent Area (HMFA) that contains San Francisco
(Many older resale units)
80% of Maximum Income by Household Size derived from the Unadjusted Area Median Income
(AMI) for HUD Metro Fair Market Rent Area (HMFA) that contains San Francisco
(Many off-site units)
13
Income Maximums
100% of Maximum Income by Household Size derived from the Unadjusted Area Median
Income (AMI) for HUD Metro Fair Market Rent Area (HMFA) that contains San Francisco
2014
•
•
•
•
•
•
•
One-person household income must not exceed $67,950
Two-person household income must not exceed $77,700
Three-person household income must not exceed $87,400
Four-person household income must not exceed $97,100
Five-person household income must not exceed $104,850
Six-person household income must not exceed $112,650
Seven-person household income must not exceed $120,400
(Please visit www.sfmohcd.org for larger households.)
14
Program Qualifications
• Income & Asset Qualified
Income Maximum Rules
•
“AMI” is the way we talk about incomes. A household at “100% of AMI” makes more than 50%
of other households in SF and less than 50% of other households in SF. They are right in the
middle. “90% of AMI” is 90% of what the “middle” household earns in SF.
•
Most new BMR units will be priced to be affordable to household at 90% of Area Median
Income (AMI). However, households earning up to 100% of AMI can qualify for these units.
This is a new rule. Older units that resell will still be required to sell their units at the same
income level as the pricing level of the unit (e.g. a unit priced at 90% of AMI must resell to a
household at 90% of AMI). These resale units have other allowances if they do not resell in a
timely manner.
•
Applicants must review the posting for each unit to know the income target of the unit. Some
“off-site” units will actually be priced as low as 70% of AMI, for instance, and allow households
to earn no more than 80% of AMI (such as 1600 Market Street).
15
Program Qualifications
• Income & Asset Qualified
How Income is Calculated:
Calculating Baseline Household Income – Paystubs
► Year-to-date income = $30,000
► It is the 10th pay period of the calendar year
► Person gets paid 24 times a year, or biweekly
► So…estimated pay period amount is $30,000 / 10 = $3,000
► Initial annualized pay = $3,000 x 24 = $72,000 a year
► Baseline annualized income = $72,000 a year
16
Program Qualifications
• Income & Asset Qualified
How Income is Calculated:
Calculating Baseline Household Income – Government Assistance Income
► Monthly statement = $900
► Initial annualized earnings = $900 x 12 = $10,800 a year
► OR, use award letter that states annual earnings
17
Program Qualifications
• Income & Asset Qualified
How Income is Calculated:
Calculating Baseline Household Income – Self-Employed Persons
► Submit notarized affidavit with last quarter’s P&L statement (modeled from Schedule C)
► If self-employed for 2 or more years of federal income tax returns, MOHCD will average 2 years of tax returns
► If self-employed less than 2 years of federal tax forms, MOHCD will annualize the Profit & Loss statement that was
submitted with the affidavit
► If over income, applicant can appeal and MOHCD will then work with lender to determine current accurate income from
self-employment
18
Program Qualifications
• Income & Asset Qualified
How Income is Calculated:
Asset Test
All cash is counted toward income, including any downpayment money or gifts.
Retirement is not asset-tested.
Calculation Rules
► First 60K is excused
► Remainder of money is imputed at 10%
► Retirement not counted
Example:
► Household of 4 earns $72,000 a year
► Total household assets = $140,000
► First $60,000 of assets is excused: $140,000 - $60,000 = $80,000 remaining
► 10% of first $80,000 remaining is added to income: $80,000 x 10% = $8,000
► New total household income: $72,000 + $8,000 = $80,000
19
Program Qualifications
• Qualified Household
•
General Rules – any group of people can become a
household
•
Non-student Household – 100% student households do not
qualify for the Program (with some exceptions)
20
Program Qualifications
• Correct Household Size
•
Household Size Determination
•
Household size is determined by adding up every person who
will live in the unit. For example: mom + uncle + grandma + 5year-old + 9 month old baby = 5-person household).
•
Minimum Household Size
•
Household must be at least as many people as bedrooms in
the unit (i.e. a one person household cannot purchase a 2bedroom unit) under City rules.
•
Maximum Household Size
•
Building itself may have maximum size rules. Must follow
Housing Code rule. (See Procedures Manual.)
21
Program Qualifications
• Occupancy Requirement
•
Must occupy unit as primary residence (as defined by living
in unit at least 10 months out of the year)
•
No renting of unit at any time
•
No renting of rooms at any time
•
Potential allowance for 1-year rental in the case of job
relocation (Must obtain approval from MOHCD)
22
Program Qualifications
• Title and Loan Requirements
•
All adults must be named on the title and loan documents.
•
Exceptions:
o Legal dependents as claimed on last year’s federal taxes or
legal minor children (even if not on taxes) not required to be on
title and loan documents
o Children of applicants who will be on title and loan who are
younger than age 24 can remain off title and loan documents
o Recent Immigrants with insufficient credit can remain off title
and loan if denied by lender and with proof of entrance
23
Program Qualifications
• First-time Homebuyer Workshop Requirement
•
In order to apply, all titleholders must attend an intensive FTHB
workshop PLUS a one-on-one counseling session from one of five
approved agencies listed at www.sfmohcd.org or
www.homeownershipsf.org.
•
Visit www.sfhomeownershipsf.org to sign up for a class.
•
Certificate is good for two years unless applying for downpayment
assistance, which requires a certificate no older than 6 months.
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Approved Housing
Counseling Agencies
Visit www.homeownershipsf.org to view upcoming classes!
Asian, Inc.
(Some classes available in Asian languages)
1167 Mission Street
San Francisco, CA 94103
(415) 928-5910
www.asianinc.org
Consumer Credit Counseling Service of San Francisco (CCCSSF)
595 Market Street, 15th Floor
San Francisco, CA 94105
(800) 777-7526 Option 9
[email protected]
www.housingeducation.org/education/workshops.html
Mission Economic Development Agency (MEDA)
(Some classes available in Spanish)
2301 Mission Street, Suite 301 (3rd Floor)
San Francisco, CA 94110
(415) 282-3334, Ext: 115
www.medasf.org
San Francisco Housing Development Corporation (SFHDC)
4439 3rd Street
San Francisco, CA 94124-3117
(415) 822-1022
[email protected] OR
www.sfhdc.org
San Francisco LGBT Community Center
1800 Market Street
San Francisco, CA 94102
(415) 865-5555
www.sfcenter.org
25
Program Qualifications
• Loan Preapproval
•
In order to apply, applicants must obtain a loan preapproval from an
approved MOHCD lender. (See www.sfmohcd.org for a list of
approved MOHCD lenders.)
•
Preapproval amount should reflect the sales price of the unit with
parking if the applicant wishes to be eligible to purchase a parking
space.
26
Restrictions on BMR Units
•
Resale price restriction – Change in AMI plus commission
•
Limited allowable capital improvements recapture upon resale
•
Resale process lottery requirement
•
Owner-occupancy requirement (renting prohibited)
•
Restrictions on loan types – See financing rules
•
Refinancing restrictions – See financing rules
•
Limited title change – can only remove or add upon new
marriage and State Domestic Partnership or dissolution of such
•
Limited inheritance – can leave to any heir but only qualified
child can inherit right to live in unit. Others must resell unit through
MOHCD.
•
Lifetime restriction
27
Application & Approval Process
(Expanded)
Pre-Lottery
•
Attend First-time Homebuyers Workshop & one-on-one counseling.
•
Learn about units through required 45-day marketing period through ads and email alert system.
(21-day marketing period for resale units.)
•
Obtain application from sales agent (or online at www.sfmohcd.org).
•
Obtain loan preapproval from approved lender.
•
Submit application to agent by deadline (not to MOHCD).
•
Public lottery held. (Need not be present.)
Post-Lottery
•
Lottery results posted on MOHCD website.
•
Agent contacts lottery winners.
•
Applications reviewed within 15 business days of submission by agent to MOHCD.
•
MOHCD sends approval or denial letter.
•
Approved buyer signs contract within 10 calendar days of date of MOHCD approval letter.
Contract must allow a 60-day closing period with a 45-day financing contingency.
•
Buyer obtains financing.
•
Lender sends loan documents to MOHCD.
•
Unit is closed! (Sale is complete!)
•
Annual monitoring of household.
29
Application & Approval Process
Documents due by deadline in order to enter the lottery
(1) One complete application (one per household)
(2) Income documentation for each person 18 years and older:
– Tax Forms and W-2’s
– Income Statements
– Asset Statements
– FTHB workshop certificate
– Loan Preapproval
(3) If claiming a lottery preference, proof of preference:
– Proof of living in San Francisco
– Proof of working in San Francisco
– Certificate of Preference (copy of Certificate) (Hotline # is 701-5613)
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Application & Approval Process
Complete Application
•
Must include all household members
•
Must be complete
•
Must be true and accurate information
•
Cannot change after submission but for special circumstances
•
No duplicate applications (cannot put same name on two applications)
•
Must be signed by all 18 and older household members
•
See more information in application instructions
31
Application & Approval Process
Tax Forms and W-2’s
• complete set of past three years federal (only) Income Tax
Returns (signed & dated) and W-2 forms
• 2011, 2013, and 2013 Federal tax return
– All schedules attached
– Signed and dated (even if today’s date)
• -OR- Tax Affidavit
– Sworn statement that no tax form was required
– Reasons for not submitting include (1) did not meet income minimum for filing or (2) out of
country (and not required to file)
– Must be signed and notarized
• Complete W-2 forms (even with affidavit)
32
Application & Approval Process
Income Statements
• three recent and consecutive income statements
– Paystubs must include year to date amount, pay period dates, name and
employer
– Government income: last 3 or award letter
– Pension income: last 3 statements or award letter
– Unemployment income: last 3 or award letter
– Unemployed affidavit:
• Sworn statement that no income is being earned
• Only use if not receiving any income at all
• Do not use if receiving unemployment income
• Must be signed and notarized
33
Application & Approval Process
Asset Statements
• three recent and consecutive asset statements from each savings,
checking, CD, mutual fund or any other type of account in which
each person has money saved
– Must be formal statements, not transaction details
– Must include name of applicant
– Include one statement from each retirement account even though retirement will
not be counted
34
Lottery Process
Lottery Preferences
•
Highest lottery preference for Certificate of Preference (“COP”) holders
•
Second highest lottery preference for Ellis Act Housing Preference
(EAHP)Certificate Holder. The Ellis Act Displacement Emergency Assistance
Ordinance was passed into law on December 18th, 2013.
•
Third highest lottery preference for households that live or work in San
Francisco
•
No other lottery preferences
•
Applicants with preferences must still qualify for the unit in all other ways
35
Lottery Process
•
Public lottery managed by MOHCD in partnership with Agent
•
Applicants do not need to attend lottery, but are welcome to attend
•
Applicants issued numbered ticket when applying for a unit
•
Twin ticket placed in a vessel with COP, EAHP, live/work and non-live/work
tickets
•
Random drawing of tickets ranked in order of being pulled
•
List is finalized by preferences after lottery
•
Results posted on MOHCD’s website by ticket number and rank
36
Sales Contract
•
Buyer required to enter in contract within 10 calendar days of MOHCD approval
letter (but seller is allowed to extend the period).
•
Sales price should name the maximum BMR value and no higher amount.
(Although seller can lower the price, if desired.)
•
Must include a 60-day closing period with a 45-day loan contingency
–
–
Seller can move onto next lottery winner if buyer does not perform in this time.
Seller is allowed to extend the period.
•
Seller pays transfer tax.
•
For new units, contract should offer standard language for new condo units (no
“as-is,” should include the one-year warranty & other standard condo rules).
•
For resale units, must use the San Francisco Purchase Agreement.
•
Buyer may be required to make an “earnest” deposit of approximately 3% at
time of contract signing that might not be returned.
37
Realtor Representation
Required to reflect same approach with market rate units
38
Closing Process:
Closing Documents
City Documents that Buyer will Sign Upon Closing
•
Promissory Note – States that the borrower will owe money to the
City in the case of default or illegal transfer. Note is satisfied upon
legal resale.
•
Deed of Trust – Secures the Note.
•
Declaration of Restrictions & Option to Purchase Agreement –
States that the unit comes with restrictions and provides City right
to require that the unit be resold through its system.
•
Buyer Acknowledgment of Special Restrictions – Buyer’s
acknowledgement that s/he has read the Procedures Manual and
understands other restrictions placed on the unit.
39
Closing Process:
Steps
•
Lender sends all required lender documents to MOHCD (review Lender
Checklist).
•
MOHCD reviews and approves documents.
•
If BMR DALP request, MOHCD reviews, approves and requests funds. Funds
take up to 2 weeks to be processed.
•
MOHCD sends closing documents to Title Co. within 10 business days without
City downpayment loan and within 15 business days with it.
40
Monitoring Process
Annual monitoring for:
• Occupancy
• Being current on loan payments
• Being current on HOA payments
• Title changes
• Other loans taken out
• Insurance on unit
• Etc.
41
Resale Process and Repricing
Resale Process
• Units must be resold through MOHCD
–
–
–
–
–
21 day posting and application period
Lottery for resale
5% added to resale price to pay realtor commission
Maximum allowable resale price established by MOHCD
Maximum allowable resale price is not guaranteed upon resale
42
Resale Process and Repricing
Resale Pricing
•
Units will be repriced based on the Change in Area Median Income (AMI)
from date of purchase to the date of sale.
–
Example:
► $300,000 unit purchased in 2008
► AMI in 2008 = $94,300
► AMI in 2013 = $101,200
► 7% increase over time
► Resale price is $300,000 x 7% = $314,000
Notes:
• Increase in value is not equal to market rate increase over time. In this example, even if comparable market rate
units increase by 20%, the maximum BMR unit value would only increase in value by 7%.
• Owners are not guaranteed that the next buyer will purchase the unit for the maximum allowable price. Owners may
have to lower their price to attract a new buyer. However, most long-term owners tend to see appreciation upon
resale.
43
Resale Process and Repricing
AMI Increase Over Time
Year
1997
1998
1999
2000
2001
2002
4 -person
household @
100% of AMI
(proxy)
$64,400
$68,600
$72,400
$74,900
$80,100
$86,100
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$91,500
$95,000
$95,000
$91,200
$86,500
$94,300
$96,800
$99,400
$101,600
$103,000
$101,200
$97,100
% increase from
previous year
5.06%
6.52%
5.54%
3.45%
6.94%
7.49%
Effective Date
1/30/1997
1/27/1998
1/29/1999
3/9/2000
4/13/2001
1/31/2002
6.27%
2/20/2003
3.83%
2/3/2004
0.00%
2/10/2005
-4.00%
3/8/2006
-5.15%
6/15/2007
9.02%
4/1/2008
2.65%
3/31/2009
2.69%
5/25/2010
2.21%
6/6/2011
1.38%
1/1/2012
-1.75%
1/1/2013
-4.05%
1/1/2014
0.54%
5-year average increase (2010-2014)
0.52%
10 Year Average % Increase (2005-2014)
Source: U.S. Department of Housing and Urban Development
44
Financing (Lending) Rules
General Loan Rules
•
Loan Requirement – must have a loan that equals at least 28% of
household income
•
Loan Originator – must use MOHCD-approved lender
•
Loan Term – 30-year loans only
•
Loan Payment Plan - Fixed-rate loans only
•
Documentation of Income – Must have proof of income
•
Interest Rates – Must be reasonable and reflect current trends
45
Financing (Lending) Rules
General Loan Rules, continued
•
Loan to Value Ratio – Maximum LTV is 95%
•
Downpayment Requirement – 5% required from buyer (3% must be own
funds; 2% can be gift funds)
•
Debt Ratios
– Front-end ratio no lower than 28% and no higher than 38%
– Back-end ratio no higher 45% or 43% with downpayment assitance
46
Financing (Lending) Rules
General Loan Rules, continued
•
FICO Score – No rule from MOHCD
•
Co-Signing – Not allowed if co-borrower is not on title
•
Fees – Must be customary & reasonable and ideally charged at close of
escrow
•
Seller Credits – Allowed as long as price remains the same and if there is no
downpayment assistance from the City
•
Named Borrowers – See title and loan rules under Program Qualifications
slide
47
Financing (Lending) Rules
General Loan Rules, continued
•
Financing Additional Items Upon Purchase – Not allowed except for 1st
parking space (no storage spaces, upgrades, etc.)
•
Appraisals – Fair Market Value appraisal required
•
BMR Note – Will state that buyer owns money to the City in case of default
or illegal transfer
•
Government-insured Loans – These programs will not lend to Inclusionary
BMRs at this time
•
Securitizing Loans – Some banks cannot sell loans to other entities and
must keep them “in house”
48
Financing (Lending) Rules
Post-Purchase Financing Rules
•
Refinancing – See Refinancing Rules in upcoming slide
•
Home Equity Lines of Credit and Loans – Credit lines not allowed. Loans
allowed if within MOHCD financing guidelines and if owner works through
MOHCD to approve the loan
•
Default and Foreclosure – Must send copy of Notice of Default to MOHCD
within 3 days of receiving notice
•
Short Sales – Allowed for units without downpayment loans from the City
49
Financing (Lending) Rules
Post-Purchase Financing Rules: Refinancing Rules
•
BMR owners must use an approved lender
•
New loans must be:
–
–
–
only for better loan terms
no higher than amount of original loan
95% LTV
•
Same financing rules as apply to original loans but for term can be 15 years
•
limited cash-out (only on principal paid down)
50
BMR Downpayment
Assistance Programs
Approved BMR lenders should determine if each BMR client is eligible for the following loan
assistance products:
____ BMR DALP or Other BMR Downpayment (if available) – 57K
____ BMR DALP PLUS or Other BMR Downpayment (if available) – 57K
____ Teacher Next Door (TND) – 20K forgivable loan
____ Police In the Community (PIC) – 20K forgivable loan
____ State CalHFA CHDAP Program - 3% of purchase price for downpayment or
closing costs
____ WISH – grant of up to $15K
____ Mortgage Credit Certificate (MCC) - tax credit can reduce monthly payment by 15%
____ Other forms of down payment assistance outside of MOHCD - your lending institution?
Note:
Cannot use BMR DALP with MCC, however BMR-DALP Plus can be combined with MCC.
BMR lien must take second place on title after the primary mortgage at all times.
51
BMR Downpayment
Assistance Programs
BMR DALP
Name:
Source:
BMR Downpayment Assistance Program
California Dept. of Housing and Community Development/
CalHome Program
Vendor:
SF Mayor’s Office of Housing and Community Development
Max Amount: $57,000
Max Income: 80% of State Limits
$ Available:
$1,500,000 total
Rules:
As set forth by CalHome and MOHCD
Differences: No application fee
Different income test (approx. 90% of BMR AMI levels)
Different asset test (all assets imputed but at lower rate)
Must not retain more than 60K after closing
FTHB certification must be dated within 6 months
52
BMR Downpayment
Assistance Programs
Income Maximums for BMR DALP Program 2014
Household Size
California Dept. of
Housing and
Community
Development
One
Two
$63,350 $72,400
Three
Four
$81,450
$90,500
Five
Six
$97,700 $104,950
80% of the State Median income is
about equal to 90% of San Francisco’s
Median Income.
53
BMR Downpayment
Assistance Programs
BMR DALP PLUS
Name:
Source:
Administered:
Max Amount:
Max Income:
$ Available:
Rules:
Differences:
BMR Downpayment Assistance Plus Program
City and County of San Francisco’s Housing Trust Fund
SF Mayor’s Office of Housing and Community Development
$57,000
81% - 120% of the HUD Unadjusted Area Median Income
$1,000,000 annually
As set forth by MOHCD
Application fee of $530 or $640 if applying together with MCC
Must not retain more than 60K after closing
FTHB certification must be dated within 12 months
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BMR Downpayment
Assistance Programs
Income Maximums for BMR DALP Plus Program 2014
Household Size
HUD Unadjusted
Area Median Income
One
Two
Three
Four
Five
Six
$81,550 $93,250 $104,900 $116,500 $125,800 $135,200
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BMR Downpayment
Assistance Programs
General Characteristics of BMR DALP Loan
•
Up to a maximum amount of $57,000
•
30-year term
•
No monthly payments -- deferred payment with no interest
•
Lender must collect and manage impound account
•
Shared appreciation according to % of original purchase price
•
5% buyer downpayment requirement (with at least 3% own funds)
•
Income maximum is 80% of State AMI or 120% of HUD AMI
•
Asset test
•
Buyer cannot retain more than 60K in assets after closing
•
LTV cannot exceed 95%
•
Ratios:
– Lowest front-end ratio is 28% after the downpayment loan assumption
– Highest (desired) front-end ratio is 38%
– Highest back-end ratio is 43%
•
Pre-payable in full
•
Must take 3rd position in lien priority order after BMR lien
•
BMP-DALP PLUS can be used with MCC
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BMR Downpayment
Assistance Programs
State Program: CalHFA CHDAP
Name:
Source:
Vendor:
Max Amount:
$ Available:
Rules:
More Info:
California Housing Downpayment Assistance Program
California Housing Finance Authority (CalHFA)
CalHFA
Covers 3% of purchase price for down payment and/or closing
costs
?
State Guidelines (Approx. 120% AMI with Price Limits)
http://www.calhfa.ca.gov/homebuyer/programs/chdap.htm
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BMR Downpayment
Assistance Programs
Federal Home Loan Program: WISH
Name:
Source:
Vendor:
Max Amount:
$ Available:
Rules:
More Info:
Workforce Initiative Subsidy for Homeownership (WISH)
Federal Home Loan Bank
Awarded Bank Members (BofA, Citi, Mechanics, etc.)
Bank will provide up to $15,000 per household, matching up to
$3 for every dollar contributed by the homebuyer toward the
purchase of the home
?
State Guidelines (80% of HUD AMI)
http://www.fhlbsf.com/ci/grant/wish/default.asp
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BMR Downpayment
Assistance Programs:
Sample Loan Layering
Purchase price for 3-bdrm unit:
BMR DALP:
CHDAP Loan (3% of price):
WISH Grant:
Buyer 5% down payment:
1st Mortgage:
$350,000
$36,000
$10,500
$15,000
$17,500
$271,000
Monthly payment at 5.0%
Monthly HOA Dues
Monthly Tax Bill (1.17% rate)
Total Monthly Housing Payment
$1,455
$400
$341
$2,196
Example:
Household of three earns $80,000 a year
Household earns approx. 6,600 gross a month
Household takes home approx. $5000 a month
Household has $2800 remaining after mortgage, but also receives mortgage deduction
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Keeping up on the BMR Program
•
BMR Webpage – Go to www.sfmohcd.org and click on “Housing” link, then
click on “Assistance for First-time Homebuyers.”
•
MOHCD Housing Email Alert System – www.sfmohcd.org
•
www.homeownershipsf.org
•
Call Mayor’s Office of Housing and Community Development at (415) 7015500 for specific questions.
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Close of Presentation
Good luck!
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