Rent Stabilization Program is
100% funded through annual
fees from rental housing
property owners. Measure P
Business Tax.
Yes
*72 ELI, 146 VLI or 26.8% of
RHNA *196 VLI or 39.8%, *18
Mod or 3.4% RHNA, *4,060
Above Mod or 371% RHNA. Total:
4,492
26.80% 310 1,381 428 4,730 3,765 69% 11,135
57 12.d
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and HouseKeys Consultant Services Agreement) Appendix B
Santa Clara County Cities Housing Program Matrix
City Name
(Population)
City Affordable Housing & Homeless Related
Programs
# City Staff dedicated to Affordable
Housing & Homelessness/Housing
related programs
# Planning Department Staff
Resources dedicated to the
Administration of a Below
Market Rate (BMR)
Program
Resources dedicated to
Homeless Services &
Programs
2022 Homeless Point-In
Time Count Results (%
Change + or -)
# of Unhoused
(2022 Homeless
Census Point-In-
Time Count)
Housing Dept.
Budget
Housing Program
Funding Sources
Housing Dept.
Use of General
Fund Yes/No
2015-2023 RHNA
Permitting Progress & %
of RHNA achieved)
2015-2023 % of ELI
Progress (includes
VLI) per Annual
Performance Report
Total # Inclusionary
BMR Rental &
Ownership Units (Not
including 100%
Affordable projects)
Total # of
Affordable
Units (All
inclusive)
Total # Existing ELI
Units (National Low
Income Housing
Coalition Gap Report)
Total # of ELI Households
Ownership & Rental HUD
Comprehensive Housing
Affordability Strategy Data
Total #
Units in the
Developme
nt Pipeline
% Zoned
Single Family
2023-2031
RHNA
Allocation
Palo Alto (66,680)
*Entitlement City
Inclusionary Housing Ordinance Below Market Rate Program CDBG (administration for CDBG is contracted w/Michael Baker with the 20% admin)
Participant in the Urban County HUD Home Investment
Partnerships Program ("HOME Program") administered by SCC 2 FTE, including:
1 Senior Planner for Affordable Housing and 1
Assistant to the City Manager for Homelessness
issues. Homelessness is administered out of the
City Managers Office.
Community Development Director
4 FTE in Long Range Planning
6 in current Planning
$316,236 2-Year contract with
Alta Housing ($158,118 per year)
Recently awarded PLHA and 90%
of it is going to a Homekey
(homeless) project which is
approximately $1.1 million for the 5
year period.
*-12% 274
Housing does not
have its own
budget, it is part of
the Long Range
Planning division.
Commercial Linkage,
Residential Housing in lieu,
CDBG, HOME consortium
funds. Next year PLHA and
the City passed a business tax.
25% of the revenue will be for
affordable housing.
No
218 VLI or 31.5% of RHNA
65 LI or 15.04% of RHNA 29
Mod or 10.43% of RHNA 541
Above Mod or 92.16% of RHNA.
Total 744 or 37.42% of RHNA.
31.50% 599 (242 ownership and 357
rental) 2,192 1,785 3,595 1,290 80% 6,086
San Jose (983,489)
*Entitlement City
Affordable Housing Portfolio Management Core Services: Loan Compliance; Property Maintenance. Affordable Housing
Productions and Preservation Core Services: Affordable Housing Development Loans; Homeownership Opportunities; Inclusionary Housing; Rehabilitation Loans and Grants. Homelessness Interventions and Solutions Core Services: Homeless Outreach and Case Management; Interim Supportive Housing Development; Joint Encampment Response Team; Tenant Based Rental Assistance and Rapid Rehousing. Neighborhood Capital Investment and Public Services Core Services: Community Development Block Grant - Infrastructure Investments; Non-Profit Services Grants to Support Housing and Community Development Needs; Place-Based
Neighborhood Strategy. Rent Stabilization and Tenant Protection Core Services: Apartment Rent Ordinance Administration; Mobilehome Rent Ordinance Administration. Strategic Support Core Services: Housing Planning and Policy Development; Housing Management and Administration; Housing Pandemic Response 105.5 FTE consist of: 1.0 FTE Accounting Clerk
I/II; 1.0 FTE Accountant I/II; 1.0 FTE
Administrative Assistant; 1.0 FTE Administrative
Officer; 27.0 FTE Analyst I/II; 1.0 FTE Assistant
Director; 1.0 FTE Assistant to the Director; 1.0
FTE Building Maintenance Superintendent; 5.0
FTE Building Rehabilitation Inspector I/II; 1.0
FTE Building Rehabilitation Supervisor; 2.0 FTE
Deputy Director; 15.0 Development Officer; 4.0
FTE Development Specialist; .50 FTE
Development Specialist PT; 1.0 FTE Director of
Housing; 4.0 FTE Division Manager; 3.0 FTE
Housing Policy and Plan Administrator; 1.0 FTE
Information Systems Analyst; 3.0 FTE Office
Specialist I/II; 1.0 FTE Public Information
Manager; 2.0 FTE Public Information
Representative I/II; 1.0 FTE Senior Accountant;
3.0 FTE Senior Analyst; 14 FTE Senior
Development Officer; 1.0 FTE Senior Systems
Applications Programmer; 8.0 FTE Staff
Specialist; 1.0 FTE Student Inter PT. Housing
Policy & Planning Team, 4.5 FTE consist of: 1.0
Division Manager; 2.0 FTE Senior Development
Officer; 1.0 FTE Development Officer; .50 FTE
Development Officer PT
Two Planning Dept. Deputy Directors
and 3 division managers. Total of 77
staff (includes 5 admin staff and
vacancies). Org Chart:
https://www.sanjoseca.gov/home/showp
ublisheddocument/92025/63809117673
0600000
Affordable Housing Portfolio
Management Team, 8.0 FTE
consist of 1.0 Senior
Development Officer; 2.0 FTE
Development Officer; 4.0 FTE
Development Specialist; 1.0 FTE
Building Rehabilitation Inspector
I/II annual budget $5,272,017
$77,676,368 (Homelessness
Intervention/Core Services). 14.25
FTE consists of 1.00 FTE Staff
Specialist, 3.25 FTE Analyst I/II,
5.0 FTE Development Officer, 3.0
FTE Senior Development Officer,
1.0 FTE Housing Policy & Planning
Administrator, 1.0 FTE Division
Manager
*8% 6,650 $233,692,430
General Fund, General Fund –
Measure E, Low and Moderate
Income Housing Asset Fund,
Coronavirus Relief Fund,
American Rescue Plan Fund,
Emergency Reserve Fund
(federal COVID funds),
CARES Act, Housing Trust
Fund, Community
Development Block Grant
Fund, HOME Program Fund,
Multi-Source Housing Asset
Fund, Inclusionary Fee Fund,
Affordable Housing Impact
Fee Fund, Homeless Housing
Assistance and Prevention
(HHAP) Fund, Building
Homes and Jobs Act Fund
(SB2), Housing Authority
Litigation Award Fund, and
the Homeless Emergency Aid
Program (HEAP) Fund.
Yes
1,939 VLI or 21% of RHNA
387 LI or 7% of RHNA 2,731 or
44% of RHNA 15,042 Above
Mod or 106% of RHNA. Total
units 20,099 or 57% of RHNA.
21.00% 1,592 18,561 17,615 57,400 20,399 62% 62,200
Santa Clara
(127,151)
*Entitlement City
Multifamily Lending and Asset Management
Inclusionary Housing Ordinance Below Marker Rent & Purchase Program
Single family repair/rehab, accessibility improvement loan and grant program (NCIP)
Pilot Multifamily Energy Efficiency program
HUD Entitlement Program Planning and Admin: CDBG, HOME, HOME ARPA, TBRA (local)
Homelessness policy, planning, coordination
Housing search and navigation (front desk)
Policy (Housing Element support)
Housing and Community Services Division has 13
total positions (FTE + temporary):
7 FTE: 1 Division Manager, 1 Housing
Development Officer, 2 management analysts, 1
staff analyst II, 1 staff aide, 1 office specialist,
4 part time as-needed positions (CDBG, BMP
ownership, inspector, housing development)
2 held vacant FTE: Inspector and Staff Analyst
(Note: 2 of the FTEs spend 10-50% on City
Manager’s Office )
Community Development Director
Assistant Community Development
Director 8 Full Time
planners and 3 vacant positions
Contract with HouseKeys
$195,000/year ownership. Rental
$166,000/year
Annual homelessness Budget
Approx. $1.17 Million. Includes
support for the HPS, County case
management MOU, mobile shower,
laundry, 411, Tenant Based Rental
Assistance, case management, and
rents. This does not include project
development loans etc.
35% increase 440 $6M
IHO Housing in-lieu fees,
impact fees, loan interest and
repayments, HUD
CDBG/HOME admin dollars,
housing successor funds, and
the General Fund
Yes 89.30%
27% as of 12/2021 issued
building permits for 289 of
ELI/VLI goal of 1,050.
Does not include 2022
APR data.
507 (159 Ownership/348
Rental) 1,572 233 6,145 11,632 40% 11,632
Saratoga (30,163)
Urban County CDBG Participant
Inclusionary Housing Ordinance BMR Program (new) 0
Community Development Director
3 FTE Planners (2 Senior Planners & 1
Assistant/Associate Planner)
0 0 N/A 0 0 0 No
0 VLI or 0% of RHNA 49 LI
or 51.57% of RHNA 14 Mod or
13.46% of RHNA 22 Above
Mod or 23.65% of RHNA. Total
units 85 or 19.36% of RHNA.
0% 0 255 420 1,070 205 95% 1,712
Sunn
yvale (152,258)
*Entitlement City
Inclusionary Housing Ordinance BMR Program CDBG/HOME
Home Rehab Program (funded primarily via CDBG revolving loan fund and annual entitlement)
BMR also manages a first time homebuyer loan program
Oversee management of a mobile home memorandum of
understanding program/compliance
Housing Division has a total of 7 FTEs
1 FTE Housing Officer
1 FTE Affordable Housing Manager
1 FTE Housing Specialist
1 FTE Housing Programs Analyst
1 FTE Housing Rehab Specialist
2 FTE Housing Program Technicians.
*likely adding one more position for homeless
services
Community Development Director
1 Planning Officer
3 Principal Planners
1 Principal Planner (Term Limited)
4 Senior Planners
6 Assistant/Associate Planners (one
position is vacant, another position is
Term Limited; they are all Associate
level currently, however this is a flex
classification)
3 support/administrative staff
2 part time (~20-25 hours per week)
Associate & Senior Planners
3 other staff working Term Limited /or
part time.
BMR Program (managed in
house)
2 FTES (1 Affordable housing
manager and 1 housing program
technician)
Total annual admin budget $380k
Will transition from City Managers
Office to Housing Division this
summer (operating budget still
TBD)
Will be recruiting for 1 brand new
FTE “homeless services manager”
in May (this will increase housing
admin budget by about 200k, funded
primarily through GF)
Currently, primarily use CDBG
public service $ to support homeless
services, plus a small 135k GF
supplement to public services.
500k GF case management contract
with HomeFirst for outreach/case
management/shelter priority
*-38% 385
Housing Division
Budget is $1.9M
admin and operating
budget (this
includes CDBG &
HOME admin)
No GF used at all.
100% of in-lieu
fees, mitigation
fees, grant admin
fees, low mod
admin funds,
CBBG/HOME admin, our
local housing fees (both
residential in lieu and
commercial mitigation), and a
small portion of our Low Mod
Income Housing Funds
Yes for Homeless
Work. No for BMR
work.
212 VLI or 13% of RHNA 111
LI or 12% of RHNA 307 Mod or
33% of RHNA 4,113 Above
Mod or 208% of RHNA Total
4,743 units or 87% of RHNA.
13% 795 2,449 1,650 6,815 205 52% 11,966
County of Santa
Clara
(103,100)
Programs available at the County of Santa Clara Office of Supportive Housing (OSH) website: https://osh.sccgov.org/home SCC Office of Supportive Housing Staff
Approved budget for Approx. 165 FTEs (majority
of these are direct service staff (i.e. outreach, case
management, clinical support) the balance
includes fiscal, grants/contracts, CoC, HCD,
homelessness prevention and general
administration.
SCC Planning Dept.
1 Director of Planning and Development
1 Deputy Director, Planning Services
4 Principal Planners (1 Senior Planner
position vacant.
5 Senior Planners
4 Associate Planners (2 currently
vacant)
6 Assistant Planners
The County’s
Assistant/Associate/Senior positions are
alternately staffed.
N/A TBD *-22% 281 TBD OSH Funding Sources TBD Yes
5th Cycle Permits Issued:
99 VLI or 445% of RHNA 0
LI or 0% of RHNA
2,597 Mod or 1214% of RHNA
464 Above Mod or 1261 of RHNA
Total Units: 3,160 or 1140.8%
*Permitting progress as of
December 2020. Source: HCD
2020 Housing Element Annual
Progress Report Permit Summary.
445% 0 TBD TBD TBD TBD 77.10% 3,125
58 12.d
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and HouseKeys Consultant Services Agreement) 59 APPENDIX C
FINANCIAL TOOLS & GRANT OPPORTUNITIES
The following revenue sources and funding opportunities are geared towards developing and expanding financial resources for affordable housing and programming. This is not an exhaustive list as it continues to evolve in real-time. Advocating for and applying for federal, state, and regional funding opportunities will lessen the cities’ reliance on the limited city funding that i s available and increase the ability to access administrative revenue. Some of the opportunities are already prioritized in the City’s Housing Element.
12.d
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 60 # Sources of Funding to Implement the Housing Program HCD Sources These programs either
have funding currently available for
application or will be announcing a notice
of funding availability (NOFA) in the next
12 months. References dates from HCD’s
NOFAS published at
https://www.hcd.ca.gov/grants-and-
funding/programs-active a s of March 21,
2023.
Webpage
Notes
Assistance Type
1 Affordable Housing and Sustainable
Communities Program (AHSC). The
AHSC Program funds land-use, housing,
transportation, and land preservation
projects to support infill and compact
development that reduce greenhouse gas
("GHG") emissions. Funding for the AHSC
Program is provided from the Greenhouse
Gas Reduction Fund (GGRF), an account
established to receive Cap-and-Trade
auction proceeds.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/affordable-housing-and-sustainable-communities
Notice of Funding Availability (Round 7) Issued January 30, 2023.
Application due April 4, 2023. Contact: [email protected] Three Project Area types: Transit
Oriented Development (TOD)
Project Areas,
Integrated Connectivity Project
(ICP) Project Areas, or Rural
Innovation Project Areas (RIPA).
2 The CalHome Program Provides grants to
local public agencies and nonprofit
corporations for first-time homebuyer and
housing rehabilitation assistance,
homebuyer counseling and technical
assistance activities to enable low- and
very low-income households to become
or remain homeowners.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/calhome
2023 Homeownership Super Notice of Funding
Availability issued January 6, 2023. Applications due Feb 28, 2023.
Contact: [email protected]
Direct, forgivable loans to assist
development projects with
w/multiple ownership units.
Loans for real property
acquisition, site development,
predevelopment, construction
period expenses of
homeownership development
projects, or permanent financing
for mutual housing and
cooperative developments.
Assistance in the form of
deferred-payment loans payable
on sale or transfer of the homes,
or when they cease to be owner
occupied, or at maturity.
3 Community Development Block Grant
Program (CDBG). CDBG partners with
rural cities and counties to improve the
lives of their low- and moderate-income
https://www.hcd.ca.gov/grants-and-funding/programs-
active/community-development-block-grant
2022 CDBG Notice of Funding Availability issued April 19, 2022.
Competitive Applications due August 19, 2022. Contact:
Must address one of three
national objectives: Benefit to
low- and moderate-income
persons, aid in the prevention or
12.d
Packet Pg. 265
Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 61 residents through the creation and
expansion of community and economic
development opportunities in support of
livable communities. (Note: Campbell
currently participating in the Urban
County CDBG program in partnership
with the County).
elimination of slums and blight, or
to meet an urgent need.
4 CA COVID-19 Rent Relief Program — for
Local Governments, Tribes, and Utilities
ERAP is for local governments within
California seeking Emergency Rental
Assistance Funds under California Senate
Bill (SB) 91 — from California’s State
Rental Assistance Program and/or a block
grant.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/covid-19-rent-relief-program
State Rental Assistance Program Guidelines issued September 27, 2021. Contact: [email protected]
(“AB 832”). $2.5 Billion to be
given directly to the State while
the remaining balance will be
provided either directly to local
jurisdictions with populations
above 200,000, or to the state to
operate programming on behalf
of those jurisdictions for rental
payments, utility and home
energy cost arrears, utility and
home energy costs, and other
expenses related to housing
incurred during or due to COVID-
19. No new updates.
5 Emergency Solutions Grants Program
(ESG)
program to (1) engage homeless
individuals and families living on the
street, (2) rapidly re-house homeless
individuals and families, (3) help operate
and provide essential services in
emergency shelters for homeless
individuals and families, and (4) prevent
individuals and families from becoming
homeless.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/emergency-solutions-grants
Emergency Solutions Grants Program Continuum of Care Allocation Notice of Funding Availability issued June 13, 2022. Due August 17, 2022. Contact: [email protected]
Street Outreach, Rapid Re-
Housing Assistance, Emergency
Shelter, and Homelessness
Prevention. ESG funds may be
used for associated Homeless
Management Information System
(HMIS) costs.
6 Excess Sites Local Government Matching
Grants Program (LGMG). The LGMG
program will provide grant-based funding
to match certain local government funding
for selected developers and local
https://www.hcd.ca.gov/grants-and-funding/programs-
active/excess-sites-local-government-matching-grants
Deadlines will be listed in the upcoming NOFA.
Contact: [email protected]
Accelerating housing production
on excess state sites, and
facilitating collaboration between
the state, local governments, and
selected developers to engage
12.d
Packet Pg. 266
Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 62 governments for predevelopment and
development of affordable housing on
excess state sites.
communities for multi-benefit
outcomes.
7 Foreclosure Intervention Housing
Preservation Program (FIHPP) is to
preserve affordable housing and promote
resident or nonprofit organization
ownership of residential real property.
Funds are to be made available as loans
or grants to eligible borrowers to acquire
and rehabilitate properties at risk of
foreclosure or in the foreclosure process.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/foreclosure-intervention-housing-preservation-
program
Funds are not yet available, possibly early 2024. Continue checking website site for updates. Contact: [email protected]
FIHPP will provide funds
for nonprofit organizations and
other eligible entities to acquire
and rehabilitate 1- to 25-
unit buildings at risk of
foreclosure or in the foreclosure
process maintain
those properties as affordable
housing.
8 Golden State Acquisition Fund (GSAF)
originating lenders provide affordable
housing developers with access to flexible
acquisition capital for the development
and preservation of affordable housing
throughout California.
http://www.goldenstate-fund.com/partners-contacts/ To discuss a financing opportunity, contact one of the originating CDFI lenders at the website.
Loans to developers for the
acquisition or preservation of
affordable housing. Loans are up
to five years and a maximum of
$13,950,000.
9 HOME American Rescue Plan Program
(HOME-ARP) $131 million to assist
individuals or households who are
experiencing homelessness, at risk of
experiencing homelessness, and other
vulnerable populations, by providing
funding for rental housing, rental
assistance, supportive services, and non-
congregate shelters.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/home-american-rescue-plan-program
Anticipated Notice of Funding Available Release May of 2023. Contact:
[email protected]
Production or Preservation of
Affordable Rental Housing
Supportive Services,
Homelessness Prevention
Services, and Housing
Counseling, Nonprofit Operating
and Capacity Building Assistance
10 HOME Investment Partnerships Program
(HOME) assists cities, counties,
developers, including Native American
Entities, and nonprofit Community
Housing Development Organizations
(CHDOs) to create and retain affordable
housing.
The program provides grants to cities and
counties and low-interest loans to
developers, and state-certified CHDOs
operating in State-eligible jurisdictions.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/home-investment-partnerships-program
NOFA issued February 24, 2022. Due March 30, 2022. Contact:
[email protected]
Eligible Activities: Housing
rehabilitation, new construction,
and acquisition and rehabilitation
for multifamily projects; new
construction and down payment
assistance for single-family
projects; First-Time Homebuyer
down payment assistance,
Owner-Occupied Rehabilitation
and Tenant-Based Rental
Assistance programs; and
12.d
Packet Pg. 267
Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 63 predevelopment loans to CHDOs.
All activities must benefit low-
income renters, homebuyers, or
homeowners
11 Homeownership Super NOFA Affordable
Homeownership Projects and Programs.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/homeownership-super-nofa
2023 Homeownership Super Notice issued January 6, 2023. Due February 28, 2023. Contact: [email protected]
Eligible Activities:
Homeownership Development
Project Loans
First-Time Homebuyer Mortgage
Assistance
Owner-Occupied Rehabilitation
Assistance
Technical Assistance for Self-
Help Housing Projects
Technical Assistance for Shared
Housing Programs
ADU/JADU Programs
Acquisition Of Manufactured
Housing
12 Housing for a Healthy California Program
(HHC)
The HHC program creates supportive
housing for individuals who are recipients
of or eligible for health care provided
through the California Department of
Health Care Services, Medi-Cal program.
The goal of the HHC program is to reduce
the financial burden on local and state
resources due to the overutilization of
emergency departments, inpatient care,
nursing home stays and use of
corrections systems and law enforcement
resources as the point of health care
provision for people who are chronically
homeless or homeless and a high-cost
health user.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/housing-healthy-california-program
Housing for a Healthy California Program 2020-2021 Notice of Funding Availability Article I - National Housing Trust Fund
NOFA issued December 31, 2021. Due February 22, 2022, for over the counter. Due March 1, 2022, for new applications.
Contact: [email protected]
NHTF Applicants: Organization,
agency, or other entity (including
a public housing agency, a for-
profit entity, or a nonprofit entity)
that is an Owner or Developer.
Uses: Acquisition and/or new
construction, SB2 Applicants:
Counties, SB2 Uses: Acquisition,
new construction or
rehabilitation, administrative
costs, capitalized operating
subsidy reserves (COSR) and
rental subsidies.
13 Infill Infrastructure Grant Program to
promote infill housing development by
providing financial assistance for Capital
https://www.hcd.ca.gov/grants-and-funding/programs-
active/infill-infrastructure-grant
Infill Infrastructure Grant – Catalytic Qualifying Infill Area Program NOFA issued March 15, 2023. Due April 2023.
Contact: [email protected]
Eligible costs include the
creation, development, or
rehabilitation of Parks or Open
12.d
Packet Pg. 268
Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 64 Improvement Projects to facilitate the
development of affordable and mixed
income housing.
Space, water, sewer or other
utility service improvements,
streets, roads, or transit linkages
or facilities, facilities that support
pedestrian or bicycle transit,
traffic mitigation, sidewalk or
streetscape improvements,
Factory-Built Housing
components, Adaptive Reuse, or
site preparation or demolition.
14 Joe Serna, Jr. Farmworker Housing Grant
Program (FWHG) Multifamily program
helps fund new construction,
rehabilitation, and acquisition of owner-
occupied and rental units for agricultural
workers, with a priority for lower income
households. Financial assistance is
available as deferred-payment loans for
multifamily housing new construction or
rehabilitation and grants for single-family
new construction or owner-occupied
rehabilitation programs.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/joe-serna-jr-farmworker-housing-grant
NOFA issued January 6, 2023. Due March 30, 2023.
Contact: [email protected]
Homeownership Development
Project Loans, First-Time
Homebuyer Mortgage Assistance
Owner-Occupied Rehabilitation
Assistance, Technical Assistance
for Self-Help Housing Projects
Technical Assistance for Shared
Housing Programs, ADU/JADU
Programs, Acquisition Of
Manufactured Housing
15 Loan Portfolio Restructuring Program
(LPR)
is to restructure existing loans in specified
HCD loan programs to preserve
affordable housing units that would have
been lost to termination of the regulatory
provisions restricting rents and
occupancy, to address physical
deterioration of the property, and/or to
improve project fiscal integrity.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/loan-portfolio-restructuring-program
Contact: [email protected] The LPR Program applies exclusively to restructuring of
loans originally funded under the
following HCD programs. See
website for a list of 9 eligible type
of projects.
16 Local Early Action Planning (LEAP)
Grants
provides over-the-counter grants
complemented with technical assistance
to local governments for the preparation
and adoption of planning documents.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/local-early-action-planning
NOFA issued January 27, 2020. Due July 1, 2020. Contact:
[email protected]
Eligible activities must be related
to housing planning and facilitate
the streamlining and acceleration
of housing production
12.d
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 65 17
Local Housing Trust Fund (LHTF)
program provides matching funds to local
and regional housing trust funds
dedicated to the creation, rehabilitation,
or preservation of affordable housing,
transitional housing and emergency
shelters.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/local-housing-trust-fund
NOFA issued March 27, 2023. Due May 17, 2023.
Contact: [email protected]
Loans for acquisition,
predevelopment expenses and
development of affordable rental
housing projects, transitional
housing projects, emergency
shelters and homeownership
projects, including down payment
assistance to qualified first-time
homebuyers, and for
rehabilitation of homes owned by
income-eligible homeowners. No
more than 20 percent of each
allocation may assist moderate-
income households, and at least
30 percent of each allocation is
required to assist extremely low-
income households
18 Manufactured Housing Opportunity &
Revitalization Program (MORE)
Funding to finance the acquisition,
conversion, rehabilitation, and
replacement of mobilehome parks and
individual mobile homes to preserve a
source of affordable homeownership.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/manufactured-housing-opportunity-and-revitalization- program
NOFA expected to be published in early 2023.
Contact: [email protected]
Acquisition, conversion,
rehabilitation, reconstruction, or
replacement of a mobilehome
park; Remediation of mobile
home park health and safety
deficiencies; Financing of
individual interest in a mobile
home park
19 National Housing Trust Fund Program
(NHTF)
Federal program to increase and preserve
the supply of affordable housing, with an
emphasis on rental housing for extremely
low-income households.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/national-housing-trust-fund-program
Contact: [email protected] New construction of permanent housing for extremely low-income
households. Financing available
as a deferred payment loan or
forgivable loan. The regulatory
agreement will be for 55 years.
20 No Place Like Home Program Funds the
development of permanent supportive
https://www.hcd.ca.gov/grants-and-funding/programs-
active/no-place-like-home-program
NOFA issued October 29, 2021. Due January 19, 2022.
Contact: [email protected]
For the development of
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 66 housing for persons who are in need of
mental health services and are
experiencing homelessness, chronic
homelessness, or at risk of chronic
homelessness.
Permanent Supportive Housing
for persons living with a serious
mental illness who are
Chronically Homeless, Homeless,
or At-Risk of Chronic
Homelessness.
21 Permanent Local Housing Allocation
(PLHA)
PLHA provides funding to local
governments in California for housing-
related projects and programs that assist
in addressing the unmet housing needs of
their local communities.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/permanent-local-housing-allocation
NOFA issued August 17, 2022. Due November 30, 2022. Contact:
[email protected]
See website for the 10 eligible
activities.
22 Pet Assistance and Support (PAS)
Program
to allow homeless shelters to reduce
barriers for those individuals experiencing
homelessness with their pets. By making
accommodations for pets, we bring
individuals into shelters who otherwise
would not receive services and shelter.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/pet-assistance-and-support-program
NOFA issued February 25, 2022. Due April 8, 2022.
Contact: [email protected]
Qualified homeless shelters shall
provide eligible uses of funds to
include the provision of shelter,
pet food and supplies, and basic
veterinary services for pets
owned by individuals
experiencing homelessness,
along with staffing and liability
insurance related to providing
those services.
23 Portfolio Reinvestment Program (PRP)
preserve existing HCD-funded affordable
housing projects by extending and
restructuring affordability agreements;
extending loan maturity dates; providing
new low-interest long-term loans for
rehabilitation; and providing forgivable
loans to capitalize short-term operating
subsidies.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/portfolio-reinvestment-program
NOFA issued March 28, 2022. Due November 30, 2022. Contact:
[email protected]
Rental housing consisting of five
or more units (or in the case of
group homes, rental housing
consisting of 5 or more rental
bedrooms).All HCD affordability
restrictions(s) have expired or will
expire on or before December
31, 2032, or which have been
foreclosed on by the Department
or another public lender, and at
least one HCD document
containing affordability
restrictions has not been
terminated or otherwise removed
by HCD
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 67 24
Predevelopment Loan Program (PDLP)
Short-term loans to finance
predevelopment costs to preserve,
construct, rehabilitate or convert assisted
housing for low-income households.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/predevelopment-loan-program
Contact: (916) 263-2771 Predevelopment costs of projects to construct, rehabilitate, convert,
or preserve assisted housing,
including manufactured housing
and mobilehome parks. Eligible
costs include but are not limited
to site control, site acquisition for
future low-income housing
development, engineering
studies, architectural plans,
application fees, legal services,
permits, bonding, and site
preparation. Priority will be given
to developments which are rural,
located in the public transit
corridors, or which preserve and
acquire existing government-
assisted rental housing at risk of
conversion to market rents.
25 Homekey is intended to support the
development of housing opportunities for
homeless individuals into permanent or
interim housing.
https://www.hcd.ca.gov/grants-and-
funding/homekey/program-background
NOFA issued March 29, 2023 ($736 million)
Contact: [email protected]
Due July 28, 2023.
Acquisition or Rehabilitation, or
acquisition and Rehabilitation, of
motels, hotels, hostels, or other
sites and assets, including
apartments or homes, adult
residential facilities, residential
care facilities for the elderly,
manufactured housing,
commercial properties, and other
buildings with existing uses that
could be converted to Permanent
Housing or Interim Housing,
Master leasing of properties for
non-congregate housing.
Conversion of units from
nonresidential to residential.
New construction of dwelling
units.
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 68 26
Prohousing Incentive Pilot Program
rewards jurisdictions at the forefront in
addressing California’s housing crisis.
NOFA issued December 15, 2022. Due March 15, 2023.
Contact: [email protected]
Program awards funds based on
the Eligible Applicant’s
Prohousing Designation
Program score to use towards
planning and implementation
activities related to housing and
community development
27 Regional Early Action Planning (REAP)
Grants of 2019 and 2021 for activities
that accelerate housing production to
meet identified needs.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/regional-early-action-planning-grants-of-2019
https://www.hcd.ca.gov/grants-and-funding/programs-
active/regional-early-action-planning-grants-of-2021
NOFA issued February 27, 2020. Due January 31, 2021.
Contact: [email protected] [email protected]
Technical assistance,
preparation, and adoption of
planning documents and process
improvements to accelerate
housing production and facilitate
compliance in implementing the
sixth cycle of the RHNA.
Accelerating infill housing
development Realizing
multimodal communities, shifting
travel behavior by reducing
driving Increasing transit ridership
See REAP 2.0 Final Guidelines for
more information
28 SB 2 Planning Grants Funding and
technical assistance to local governments
in California to help cities and counties
prepare, adopt, and implement plans and
process improvements that streamline
housing approvals and accelerate housing
production. Accelerate housing
production. Streamline the approval of
housing development affordable to owner
and renter households at all income
levels.
https://www.hcd.ca.gov/grants-and-funding/programs-
active/sb-2-planning-grants
NOFA issued March 28, 2019. Due November 30, 2019. Contact:
[email protected]
Updates to general plans,
community plans, specific plans,
local planning related to
implementation of sustainable
communities’ strategies, or local
coastal plans. Updates to zoning
ordinances. Environmental
analyses that eliminate the need
for project-specific review.
Local process improvements that
expedite local planning and
permitting.
29 Veterans Housing and Homelessness
Prevention Program (VHHP) Long-term
loans for the acquisition, construction,
rehabilitation, and preservation of
affordable multifamily housing for veterans
https://www.hcd.ca.gov/grants-and-funding/programs-
active/veterans-housing-and-homelessness-prevention
Included in March 30, 2022 Super NOFA. Due July 12, 2022. Contact:
[email protected]
At least 50 percent of the funds
awarded shall serve veteran
households with extremely low
incomes. Of those units targeted
to extremely low-income veteran
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 69 and their families to allow veterans to
access and maintain housing stability.
housing, 60 percent shall be
supportive housing units.
*The above referenced HCD programs can be found here: https://www.hcd.ca.gov/grants-and-funding/programs-active as of 3/31/2023 as of 3/31/2023.
Additional Funding Sources for
consideration:
Webpage Notes Assistance Type
30 Destination Home Capacity Building
Grant
https://destinationhomesv.org/news/2021/08/23/announcing- new-capacity-building-grants-for-community-partners/
Contact: Ray Bramson [email protected],
https://destinationhomesv.org/
To achieve the goals of the 2020-
2025 Community Plan to End
Homelessness, including
preventing and ending
homelessness and increasing
community engagement and
support for the Plan’s strategies.
31 Regional Ballot Measure to fund
affordable housing units, including
acquisition/preservation and new
construction.
https://mtc.ca.gov/about-mtc/authorities/bay-area-housing- finance-authority-bahfa
Consider supporting regional measures. The
recommendation is to monitor the progress of the regional measure and coordination with BAHFA staff to help shape the measure and expenditure plan. Continue to monitor this effort, possibly November 2024 Regional Housing Bond.
The Bay Area Housing Finance Authority (BAHFA) has initiated efforts to advance a regional revenue measure which would be coordinated with the 9 Bay Area counties. Assembly Bill (AB) 1487 established BAHFA which is governed by the Metropolitan Transportation Agency (MTC) and the Association of Bay Area Governments (ABAG).
Contact: Kate Hartley
Bay Area Housing Finance Authority (BAHFA), Section Director [email protected]
(415) 778-6679
“raise, administer, and allocate
funding for affordable housing in
the San Francisco Bay Area, as
defined, and provide technical
assistance at a regional level for
tenant protection, affordable
housing preservation, and new
affordable housing production.”
32 Housing Trust of Silicon Valley (HTSV)
Downpayment Assistance Program
https://housingtrustsv.org/programs/homebuyer-
assistance/empower-homebuyers-scc/
Explore funding sources and external partners to cover
closing costs for households looking to afford BMR
ownership units. This will maximize your community’s ability to take advantage of ownership opportunities.
Empower Homebuyers SCC 408-703-3837 ext. 301
[email protected]
Empower Homebuyers is a down
payment assistance loan for first-
time homebuyers in Santa Clara
County. If a homebuyer has at
least 3% of a home’s purchase
price saved up, an Empower loan
can provide up to 30% of the
purchase price – enabling a down
payment of 33% on a home.
There is no maximum purchase
price.
33 County of Santa Clara Below Market Rate
(BMR) Program Downpayment
Assistance
https://osh.sccgov.org/home
County of Santa Clara Office of Supportive Housing
Contact: Natalie Monk
HCD Division Manager
Office of Supportive Housing
State committed up to $5 million
in CalHome funds to the County
for mortgage assistance, of this
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 70 County of Santa Clara
P: 408-510-0335 [email protected]
$1 million is set-aside for mobile
homes and manufactured
housing. County intends to
request to use $5 in CalHome
funding and an additional $5 in
2016 Measure A Affordable
Housing Bond to fund a BMR
Partnership Program to promote
affordable homeownership
opportunities, program to provide
deferred subordinate loans to
eligible households purchasing a
home within Santa Clara County.
The primary goal of the program
is to partner with local
jurisdictions and other agencies
within Santa Clara County to
make homeownership more
accessible to lower income
households.
To accomplish this goal, the
County intends to work closely
with other governmental agencies
who operate within Santa Clara
County.
34 Commercial Linkage Fee Explore a Commercial Linkage Fee (CLF), a fee paid by developers of offices and retail space to offset some of the additional need for affordable housing created by new
commercial development. CLF funds are used for the
provision of affordable housing.
N/A N/A
35 Sponsor Public/Private Partnership for
Affordable Housing, Surplus City Owned
land
Development of surplus City owned property for affordable housing, issue an RFP for development proposals. The City’s participation could be in the form of leasing the site to the development (ground lease for 99 years with the property reverting back to the city) or selling at a reduced price to enable the production of affordable housing. Seek
partnerships with public, private, and philanthropic funders.
N/A N/A
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 71 36 Study COPA/TOPA and Community Land
Trust Options
Opportunity to Purchase Acts give eligible buyers, such as tenants, community land trusts, affordable
housing providers, and community based organizations a
“right of first refusal” or an exclusive period to make an offer on the property, or the option to match any offer made by a private buyer.
https://baysfuture.org/wp-content/uploads/2022/08/opa-playbook.pdf
https://publicadvocates.org/wp-content/uploads/2022/04/topa-copa- policies.pdf T OPA, tenants are empowered to negotiate directly in the sale of their building or can choose to assign that right to another entity, while with COPA, that ability is given to a list of qualified nonprofits.
There are two common OPA
models: Tenant Opportunity to
Purchase Acts (TOPA) give
tenants the right of first refusal to
purchase their property
and/or allow tenants to assign
their right to an organization,
such as a non-profit affordable
housing provider or community
land trust. Community
Opportunity to Purchase Acts
(COPA) give qualified
organizations the right to
purchase the property.
37 County of Santa Clara Challenge Grant
Proposal
Supervisors Joe Simitian and Otto Lee issued a challenge to partners throughout the public and private sector to join the County in supporting the creation of interim housing sites with supportive services. The Board ultimately approved a “Challenge Grant” of up to $40 million to jump start as many as 16 sites/projects for homeless individuals. The challenge grants can be leveraged by nonprofits and other qualified applicants to catalyze the development of supportive interim housing sites across the County. To date the Board has
awarded $8 million.
https://district5.sccgov.org/about-joe/joe-job/unhoused/supportive- interim-housing-sites
Contact: [email protected]
SCC Providing up to $40 million
to support cities’ efforts to
provide interim shelter
opportunities for the unhoused.
38 Local Revenue Measure to fund affordable
housing units, including acquisition,
preservation, and new construction.
Explore Local Bond Measure. Consider providing a forum for a public discussion of the merits of placing a local bond measure on the ballot to help fund affordable housing.
N/A N/A
39 Inclusionary Housing Ordinance Housing
in-lieu fee (ongoing evaluation)
Consider biannually evaluating the housing in lieu fee ($34.50 Ownership, $21.50 Rental per sf)
N/A N/A
40 Real Property Transfer Tax Measure City of San Jose Measure E enacted a Real Property Transfer Tax, which is imposed on property transfers of $2 million or more. Revenues generated by Measure E provide funding for general City services, including affordable housing and up to 5% off the top of total revenues to support administrative activities.
https://www.sanjoseca.gov/your-government/departments-
offices/housing/resource-library/housing-investment-plans-and- policy/measure-e-real-property-transfer-tax
N/A
41 Business License Revenue Measure Example: Measure P in Mountain View. Business license tax on City employers between $8 to $149 per employee on
average, depending on company size. The measure is a
https://www.mountainview.gov/depts/fasd/revenue/business/default.asp N/A
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 72 CASA: The leadership of the Committee to House the Bay Area (CASA) created by MTC and ABAG brought forward significant solutions to the Bay Area’s housing crisis. The work began in 2017, and the CASA Compact Report was adopted in 2018. The CASA Compact report includes the following potential sources of revenue on p.18-19 of the CASA report.
The framework that they developed continues to be influential in several housing related bills. It also led to the creation of a new entity called the Bay Area Housing Finance Authority (BAHFA) that could raise significant new revenue for housing. On January 13, 2023, a BAHFA Draft Equity Framework was released.
CASA Compact Potential New Sources of Revenue (January 2019)
A. Vacant Homes Tax levied on property owners (on the assessed value of vacant home, region-wide). Vancouver adopted an Empty Homes Tax of 1 percent in 2016. Oakland adopted a Vacant Property (parcel) Tax of $3,000 to 6,000 in 2018.
B. Parcel Tax levied on property owners (residential and commercial)
C. Commercial Linkage Fee charged to developers on new construction; variable rates based on number of workers at location, jobs-housing ratio of host jurisdiction, and location within or outside transit- served areas, region-wide.
D. Gross Receipts Tax levied on employers, variable rates based on sector and firm size, region-wide
E. Head Tax levied on employers, variable rates based on number of employees, jobs- housing ratio and transit access, region-wide.
F . Revenue Set Asides for Redevelopment Agencies (local governments).
G. Revenue Sharing Contribution from future property tax growth, region-wide, into a region-wide housing program for local governments. Former Redevelopment Agencies were required to set aside 20 percent of their revenue towards affordable housing.
H. 1/4-cent Sales Ta x. Most jurisdictions have local sales taxes.
I. General Obligation Bonds are reissued every five years by a regional enterprise, region-wide.
general-purpose tax to offset the impact that employers have on the City’s transportation needs, affordable housing and other City services.
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and 73 Appendix D
Destination Home Capacity Building Grant
Organization: City of Campbell
Contact: Rob Eastwood, AICP
Community Development Director
City of Campbell | Community Development Department
70 N. First Street | Campbell, CA 95008
408.866.2141 (Office – call or text) 408.318.0656 (Cell) [email protected]
Proposal: Destination Home Capacity Building Grant
Purpose: To hire a Full Time Employee as an Unhoused Specialist with the City of Campbell. Having this critical role within our organization to serve as a liaison with the community, City, and County on Homelessness will allow the City to elevate and advance the local implementation of the Community Plan to End Homelessness.
Grant Period: 3 years
Requested Amount of grant: $450,000 or $150,000 per year over three years.
In 2020 the Campbell City Council endorsed the Santa Clara County 2020 Community Plan to End Homelessness (Community Plan). To further refine and improve the City of Campbell's Housing Program, the City's Community Development Department had a Housing Program Consultant conduct an independent audit of the City's Housing Program. It was highly recommended that the City seek a capacity-building grant to support a Full Time Unhoused Specialist (Case Manager) to work directly with the City's unhoused community members and advance the Countywide Community Plan for the City of Campbell. The proposal before you respectfully requests that Destination Home consider awarding a capacity-building grant to fund the Unhoused Specialist position that will serve as a direct liaison to our unhoused residents, the community, and the County. The grant will aid in developing and advancing the "local" implementation of the Community Plan.
Description of the Position: Unhoused Specialist
A Full-Time Unhoused Specialist would work one-on-one with people experiencing Homelessness to conduct assessments, housing search and stability, employment/self-sufficiency, identify services and resources countywide, advise the team on a coordinated response, evaluation, and assess local homeless efforts. This position will work closely with many stakeholders to leverage available resources and ensure a cohesive, solution-focused, regional approach necessitating close
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and HouseKeys Consultant Services Agreement) 74 coordination and case conferencing with County departments, governmental agencies, community, and faith-based organizations. This position will provide an opportunity to create a response that includes all City Departments and operates within a trauma-informed framework.
Anticipated outcomes of Unhoused Specialist:
·Housing Problem Solve at the local level through the Unhoused Specialist by building relationships and trust with our Unhoused residents and conducting service navigation on their behalf. · Develop and launch a local implementation plan for Campbell with specific targets and outcomes for each of the three Community Plan strategy areas referenced in the Community Plan within the first year.
· Work with Destination Home and the County Office of Supportive Housing to develop a local Affordable Housing Development Plan, focusing on supportive and highly low-income housing and other affordability levels as needed.
· Engage in ongoing regional discussions and collaborations to further the mission of the Community Plan, such as engaging the West Valley Cities to support their ability to contribute and engage on the issue of Homelessness.
· Facilitate educational opportunities with the community and stakeholders to encourage affordable housing and access to programs, to increase the community's awareness, and demystify affordable housing and Homelessness.
Below is an excerpt from the City's recent Housing Program Audit.
"Finding 5: Additional capacity and coordination are needed to develop a local Homeless Response System in sync with the County of Santa Clara Community Plan to End Homelessness to ensure it is implemented at the local level.
Recommendation: It is recommended that the City consider applying for a three-year Destination:
Home capacity-building grant to hire a full-time unhoused specialist to support the coordination of Homeless services and provide direct assistance through proactive street outreach, an additional estimated $130,931/year in salary and benefits.
Summary: According to the County of Santa Clara 2022 Point-In-Time Homeless Census Count, the City experienced a 191% increase, a reported jump from 74 unhoused individuals in 2019 to 216 individuals in 2022. The 2022 Point-in-Time Count estimated the number of homeless individuals in Santa Clara County in February 2022. Although the Count is imperfect, it is used to measure Homelessness across jurisdictions using a consistent methodology. As a result of the reported increase, City staff included a commitment to several homeless programs in the most recent 6th cycle Housing Element submitted to State HCD in January of 2023 to address this issue."
Homelessness is a complex problem requiring interagency, interdisciplinary, and intergovernmental-focused action to be effective. While the issue affects many City departments, such as the police department, fire department, parks and recreation, and code enforcement, it is
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and HouseKeys Consultant Services Agreement) 75 to the benefit of the City to identify one department as the primary leader responsible for coordinating the City's work on Homelessness.
Historically, smaller cities have relied on the County to provide health and human services.
However, a municipality can evolve and develop an internal system that responds to its unhoused residents with compassion, support, and ultimately a roadmap to link local homeless residents to shelters and both interim and permanent housing opportunities. This is best done in conjunction with the County and local community-based organizations. While counties have many resources to support the community, including social services, health care, behavioral health, and the reentry justice system, cities maintain land use authority. A city's knowledge of the development pipeline and upcoming local housing opportunities in real-time, paired with intimate "on-the-ground" local knowledge of its unhoused residents, provides a realistic option for a city to evolve its response to Homelessness. Braiding together the city and county systems requires intention and significant coordination to work towards meaningful solutions for the local community. Furthermore, smaller cities can serve as innovative incubators and be agile enough to adjust as needed while creating a path of partnership and innovation.
The position of an unhoused specialist will provide direct services and street outreach while working closely with many stakeholders to leverage available resources and ensure a cohesive, solution- focused approach necessitating close coordination with City and County departments, other jurisdictions, governmental agencies, community, and faith-based organizations. Additionally, the position will promote the integration of services, identify existing and new affordable housing options, and secure funding to support the strategies identified to address and prevent Homelessness.
West Valley Regional Opportunity: The City of Campbell has begun preliminary conversations with our neighboring jurisdictions in the West Valley that have similar needs or may have such requirements in the future. It has been determined that exploring a partnership with the West Valley jurisdictions (Los Gatos, Saratoga, Cupertino, and Monte Sereno) on shared approaches for a regional homelessness program is of value. This position is intended to support the City of Campbell; however, there is a natural opportunity to help our fellow smaller West Valley jurisdictions. This group will continue to meet bimonthly and explore opportunities to share the benefit and costs of this role. This element is still evolving, but if we can harness their commitment, we welcome the opportunity to partner with them and share some of the cost of this role.
To solidify the City's commitment to producing Extremely Low-Income Housing, I have included relevant excerpts from the 6th Cycle Housing Element recently adopted by the Campbell City Council in January of 2023 and submitted to State HCD for review and approval.
"As defined by the RHNA, Campbell's new construction need for the 2023- 2035 planning period is 2,977, approximately tripling the numbers from the last RHNA cycle, distributed among different income categories as shown in Table II-15. State law requires that the City determine the subset of the very low-income regional need that constitutes the community's need for extremely low-income
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and HouseKeys Consultant Services Agreement) 76 housing. Based on U.S. Census data, HCD's Regional Housing Need Determination for the Bay Area estimates that 15.5 percent of the region's housing need is for 0-30 percent AMI households, while 25.9 percent is for 0-50 percent AMI households. Therefore, extremely low-income household needs represent 59.8 percent of the region's very low-income housing needs. The City is using this projection, which is the most conservative estimate for extremely low-income households, resulting in an estimated 450 units needed for extremely low-income households."
"Regional Housing Needs Allocation 2023-2035 Income Level Percent of Area Median Income (AMI) Units as per RHNA Percent of Total RHNA Extremely Low 0-30% is 450 ELI units."
"Unhoused Specialist/Coordinator: Through the implementation of Program H-5e (Homeless Assistance/Shelter Provisions), the City will seek to expand staffing capacity by pursuing funding to create a new Unhousing Specialist position which will work directly with persons experiencing homelessness and address their housing needs through the implementation of homeless programs and the development of a plan to target the creation of ELI units."
"Issue RFP for affordable housing development (pending outcome of feasibility analysis) and prioritize projects with include ELI units (mid-2024)."
"Expand City staffing capacity by pursuing funding to create a new Unhoused Specialist position to implement homeless programs and develop a plan to target the creation of ELI units. The Specialist will administer the Vulnerability Index-Service Prioritization Decision Assessment Tool (VI-SPDAT) to a minimum of 100 Housing Division Community Development Budget; Project Homekey; Measure A; Destination Home; other outside sources Apply to the County for a Destination: Home Capacity Building Grant for $450,000 in Spring 2023. Pending the award of funds, fill the Program H-5e:
Homeless Assistance/Shelter Provisions: Increase housing options and services for persons experiencing Homelessness in the community. The H.IV -73 CAMPBELL GENERAL PLAN | HOUSING homeless as a means of prioritizing resource allocation."
"The City shall partner with Affordable housing developers using available City funds (in-lieu fees/linkage fees), City-owned lands, or other resources to support the development of these units.
Implement programs that incentivize/prioritize ELI housing (refer to Programs H1n, H-5e, H-5s, H- 5y)."
"Extremely Low-Income (ELI): While the element briefly quantifies ELI households but should specifically analyze their housing needs, including tenure, overpayment, available resources and strategies, the effectiveness of the past programs, and the magnitude or disproportionate impacts on housing needs. Then, the element should add or modify programs as appropriate."
I appreciate your consideration.
Regards,
Rob Eastwood, Community Development Director
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and HouseKeys Consultant Services Agreement)
APPENDIX E
Gro
wing List of Penalties for Local
Governments Failing to Meet
State Housing Law
California’s Housing and Community
Development (HCD) department in
April 2021 issued guidance to cities and
counties about the consequences of
falling short in adopting or otherwise
complying with previously adopted
housing elements.
HCD noted that, under legislation enacted in recent years, it is authorized “to review any action or failure to act by a local government (that it finds) inconsistent with an adopted housing element or housing element law. This includes
failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law.” And because housing elements are a mandatory part of a city or county’s General Plan, a noncompliant housing element could also impact its General Plan, potentially invalidating it as well.
Localities in this situation are subject to a range of penalties or consequences, including:
Legal Suits and Attorney Fees: Local governments
with noncompliant housing elements are vulnerable to
litigation from housing rights’ organization, developers, and HCD. If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the case, it often must pay substantial attorney fees to the plaintiff’s attorneys in addition to the fees paid to its own attorneys. Potential consequences of lawsuits include: mandatory compliance
within 120 days, suspension of local control on building matters, and court approval of housing developments.
Loss of Permitting Authority: Courts have
authority to take local government residential and
nonresidential permit authority to bring the jurisdiction’s General Plan and housing element into substantial compliance with State law. The court may suspend the locality’s authority to issue building permits or grant zoning changes, variances, or subdivision map approvals – giving local governments a strong incentive to bring their housing element into compliance.
Financial Penalties: Local governments are subject
to court-issued judgements directing jurisdictions to bring a housing element into substantial compliance with state housing element law. If a jurisdiction’s housing element continues to be found out of compliance, courts can fine jurisdictions up to $100,000 per month, and if they are not paid, multiply that by a factor of six.
Court Receivership: Courts may appoint an agent with
all powers necessary to remedy identified housing element deficiencies and bring the jurisdiction’s housing element into substantial compliance with housing element law.
Streamlined Ministerial Approval Process:
Proposed developments in localities that have not yet made sufficient progress towards their allocation of the regional housing need are now subject to less rigorous “ministerial” approvals in order to hasten the production of housing and bring a jurisdiction into compliance with its state-determined housing need allocation.
OVER ▼
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and HouseKeys Consultant Services Agreement) Housing Laws Figure
Prominently in the News
Following are links to a sampling of recent news
coverage documenting the risks and challenges faced
by cities and counties in the new housing arena:
State can sue:
• In the face of unprecedented housing crisis, California takes a
ction to hold cities accountable for standing in the
way of housing https:/ /www.gov.ca.gov/2019/01/25/
housing-accountability/
•
Huntington Bea
ch loses housing case with state of
California https:/ /web.archive.org/web/20210203030515/ https:/www.latimes.com/ socal/daily-pilot/news/
story/2021-02-02/huntington-beach-loses-housing-case-
with-state-of-california
•
State ma
y revoke Encinitas’s compliance status
with California housing law https:/ /www.
sandiegouniontribune.com/communities/north-county/
encinitas/ story/2020-02-14/ state-revokes-encinitass-
compliance-status-with-california-housing-law
•
Under press
ure from state, Simi reverses opposition
to proposed 278-unit apartment complex https:/ /www.
vcstar.com/ story/news/local/communities/ simi-
valley/2020/02/08/ apartments-low-income-housing-
simi-valley-california/ 4679587002/
Developers can sue:
• Holland & Knight First in California to Win Lawsuit
Und
er New State Housing Law https:/ /www.hklaw.com/
en/news/pressreleases/2020/05/holland-knight-first-in-
california-to-win-lawsuit-new-housing-law
•
Developer Sues M
illbrae Over Proposed Housing at
Historic El Rancho Inn https:/ / sanfrancisco.cbslocal. com/2021/06/03/developer-sues-millbrae-over-
proposed-housing-at-historic-el-rancho-inn/
Third parties can sue:
• Controversial V allco project can continue under SB 35, judge r
ules https:/ / sanjosespotlight.com/controversial-
vallco-project-can-continue-under-sb-35-judge-rules/
• City of Coronad
o sued over failing to comply with state
law allowing expedited approval for accessory dwelling
units https:/ /www.sandiegouniontribune.com/business/
story/2021-01-21/coronado-sued-over-allegedly-denying-
granny-flats
•
Los Altos drops appeal to court
-approved housing
development https:/ /www.mv-voice.com/
news/2020/09/08/los-altos-drops-appeal-to-block-five-
story-downtown-housing-project
•
City Tak
es Step That Could Expand Housing on the
W estside https:/ /www.sfpublicpress.org/city-takes-step- that-could-expand-housing-on-the-westside/
Individuals can sue:
• Clovis loses legal challenge, will be forced to zone and plan for low
-income housing https:/ /www.fresnobee.com/
news/local/ article251227789.html
• Permanent Local Housing Allocation
• Affordable Housing and Sus
tainable
Communities Grants
• SB 1 Planning Grants
• CalHOME Program Grants
• Infill Infras tructure Grants
• Pro-Housing Design funding
• Local Housing T
rust Funds
• Regional Transporta
tion Funds
(such as MTC’s OneBayArea Grants)
Conversely, an HCD-certified housing element brings with it eligibility for numerous state and regional funding sources, including:
mtc graphics.pb – 6.9.21
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Incentives
Incentives for Housing Element Compliance: Various state grant and loan programs require an HCD-certified housing element. Examples of active state funding sources that require housing element compliance for eligibility include the following:
Permanent Local Housing Allocation (PLHA): Helps cities and counties increase the supply of housing for households at or below 60% of area median income, increase assistance to affordable owner-occupied workforce housing, assist persons experiencing or at risk of homelessness, facilitate housing affordability, meet RHNA requirements, and ensure geographic equity in fund distribution.
Affordable Housing and Sustainable Communities (AHSC):
:
:
:
:
:
:
The AHSC Program funds land-
use, housing, transportation, and land preservation projects to support infill and compact development that reduce greenhouse gas ("GHG") emissions. Funding for the AHSC Program is provided from the Greenhouse Gas Reduction Fund (GGRF), an account established to receive Cap-and-Trade auction proceeds.
SB 1 Planning Grants State-funded Sustainable Communities grants help cities pay for local transportation improvements.
CalHOME Program The purpose of the CalHOME Program is to enable low- and very low- income households to become or remain homeowners through grants to local public agencies and nonprofit developers to assist individual first-time homebuyers through deferred-payment loans for down payment assistance, home rehabilitation, including manufactured homes not on permanent foundations, acquisition and rehabilitation, homebuyer counseling, self-help mortgage assistance, or technical assistance for self-help homeownership.
Infill Infrastructure Grants (IIG) IIG provides grant assistance, available as gap funding for infrastructure improvements necessary for specific residential or mixed-use infill development projects or areas.
Prohousing Designation Program Prohousing designated jurisdictions will be awarded preference points on competitive funding applications (e.g. IIG, AHSC, Transformative Climate Communities (TCC), etc.). Local Early Action Planning (LEAP) and Regional Early Action Planning (REAP) grants can be utilized to establish prohousing policies for the purposes of eventually earning a Prohousing Designation.
Local Housing Trust Fund Program (LHTF) The LHTF Program provides matching funds to local and regional housing trust funds dedicated to the creation, rehabilitation, or preservation of affordable housing, transitional housing and emergency shelters.
Regional Tr
ansportation Funding Transportation funding for some regions depend on local jurisdiction housing element compliance (e.g. One Bay Area Grant funding (OBAG), SANDAG’s Active Transportation Grant Program, etc.).
Appendix E
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Consequences
Penalties and Consequences of Housing Element Noncompliance HCD is authorized to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or housing element law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law. Examples of penalties and consequences of housing element noncompliance:
General Plan Inadequacy
: The housing element is a mandatory element of the General Plan.
When a jurisdiction’s housing element is found to be out of compliance, its General Plan could be found inadequate, and therefore invalid.
Local governments with an invalid General Plan can
no longer make permitting decisions.
:
:
Legal Suits and Attorney Fees Local governments with noncompliant housing elements are vulnerable to litigation from housing rights’ organization, developers, and HCD. If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the case, it often must pay substantial attorney fees to the plaintiff’s attorneys in addition to the fees paid by its own attorneys. Potential consequences of lawsuits include: mandatory compliance within 120 days, suspension of local control on building matters, and court approval of housing developments.
Loss of Permitting Authority Courts have authority to take local government residential and nonresidential permit authority to bring the jurisdiction’s General Plan and housing element into substantial compliance with State law. The court may suspend the locality’s authority to issue building permits or grant zoning changes, variances, or subdivision map approvals – giving local governments a strong incentive to bring its housing element into compliance.
Newer Consequences of Housing Element Noncompliance
Financial Penalties: Court-issued judgement directing the jurisdictions to bring its housing element in substantial compliance with state housing element law. If a jurisdiction’s housing element continues to be found out of compliance, courts can multiply financial penalties by a factor of six.
Court Receivership: Courts may appoint an agent with all powers necessary to remedy identified housing element deficiencies and bring the jurisdiction’s housing element into substantial compliance with housing element law.
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Attachment: Campbell Housing Program Audit, Rebecca Garcia (Housing Program Update and HouseKeys Consultant Services Agreement) What is Below Market Rate?
The Below-Market-Rate (BMR) Housing Program helps
address the high cost of housing in Campbell by increasing the diversity and supply of affordable housing. The basic objective of the BMR Program is the provision of on-site affordable rental or ownership units within a new housing development.
How does the program work?
The City of Campbell's Below Market Rate (BMR) Program has been created to provide homeownership and rental
opportunities that are more affordable than the private market for persons living or working in Campbell. The
program requires that all interested parties follow these steps.
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El Programa de vivienda asequible ayuda a abordar el alto costo de la vivienda en Campbell al aumentar la diversidad y la oferta de viviendasasequibles. El objetivo b6sico del programa BMR es proporcionar unidades de propiedad o
alquiler asequibles en el sitio dentro de un nuevo desarrollo de viviendas.
iQue es el programa de vivienda asequible?
El Programa de vivienda asequible ayuda a abordar el alto costo de la vivienda en Campbell al aumentar la diversidad y la oferta de viviendasasequibles. El objetivo b6sico del programa BMR es proporcionar unidades de propiedad o
alquiler asequibles en el sitio dentro de un nuevo desarrollo de viviendas.
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Projection of Fund 233
Cash Projection for Fund 233 Actual Actual Actual Actual Actual Actual Actual Adopted Projected Projected Projected Projected Projected FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Beginning Cash Balance 1,236,04 5 1,103,712 1,333,407 1,477,366 1,404,270 1,372,287 1,320,520 1,144,275 792,692 581,883 354,732 110,885 (150,551) Revenue
Investment & Interest Income 20,98 4 20,903 49,616 70,800 91,471 34,242 47,676 50,000 34,086 25,021 15,253 4,768 ‐ Loan Payoffs 48,62 9 104,410 242,407 123,621 50,000 ‐ 29,679 25,000 25,000 25,000 25,000 25,000 25,000 Sale of Property ‐ 355,582 ‐ 8,934 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ In‐Lieu Fees ‐ ‐ ‐ ‐ ‐ 104,432 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Revenue ‐ ‐ ‐ ‐ ‐ ‐ ‐ 190,839 ‐ ‐ ‐ ‐ ‐ Total Revenues 69,613 480,895 292,023 203,355 141,471 138,673 77,355 265,839 59,086 50,021 40,253 29,768 25,000 Expenditures
Salary & Benefits 55,13 6 57,283 54,773 37,206 34,990 42,682 106,672 101,822 105,895 109,072 111,799 114,593 117,458 BMR Admin Fee (Nyanda) 30,00 0 137,200 137,200 228,703 153,200 137,199 165,408 160,000 164,000 168,100 172,303 176,610 181,025 Miscellaneous Expenditures 116,81 0 56,717 (43,909) 10,542 (14,736) 10,559 (18,480) 355,600 ‐ ‐ ‐ ‐ ‐ Total Expenditures 201,94 6 251,200 148,064 276,451 173,454 190,440 253,600 617,422 269,895 277,172 284,101 291,204 298,484 Ending Cash Balance 1,103,71 2 1,333,407 1,477,366 1,404,270 1,372,287 1,320,520 1,144,275 792,692 581,883 354,732 110,885 (150,551) (424,034) Net Change in Cash (132,333) 229,695 143,959 (73,096) (31,983) (51,766) (176,245) (351,583) (210,809) (227,151) (243,848) (261,436) (273,484) 83 12.d
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City of Campbell / HouseKeys
Below Market Rate (BMR) Program
Rental Application Guide
[November 2018 Draft]
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TABLE OF CONTENTS
1. Introduction Page 2
2. Online Web Portal Page 3
3. Establishing an Account Page 4
4. Household Information Profiles Page 5
5. Application Process Page 6
6. Below Market Rate (BMR) Maximum Rental Rates Page 11
7. Tenant Selection, Lease Signing, and Move In Page 12
8. Participant / Tenant Compliance, Responsibilities, and Annual Recertification Page 13
9. The Application File Structure & Application Criteria Page 14
10. Eligibility Criteria and Preferences Page 15
11. Qualification Factors Page 19
12. Income Inclusion and Exclusion Page 21
13. Reasonable Accommodation and Exception Requests Page 24
14. Landlord Compliance and Owner / Management Responsibilities Page 25
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1. INTRODUCTION
HouseKeys is the City of Campbell’s Affordable Housing Program Administrator. This Rental Application Guide includes the guidelines, policies, and procedures that comprise the Affordable Rental Program for Below Market Rate (BMR) units.
Applying for, renting, and following leasing rules on an Affordable Rental Unit differs in many ways from renting at market rate. These differences include maintaining income eligibility during the entire lease term. It is important that prospective tenants understand the rules and procedures of the City’s Affordable Housing Program (“Program”) fully.
The Program Application Guide and other relevant information (e.g., Ordinances, procedures, and income limits), will be amended and updated from time to time . All proposed changes are subject to approval by the City Council prior to implementation and shall comply with state and federal affordable housing laws.
Updates to this Program Application Guide and other relevant information will be posted on the HouseKeys website
Please contact HouseKeys with any questions or concerns regarding this document or any other question regarding the City’s affordable housing program:
Online: http://www.housekeys2.com
Email: [email protected]
Phone: 1-877-460-KEYS (5397)
Address: 70 N. First Street Campbell, CA 95008
ALL GUIDELINES ARE SUBJECT TO CHANGE WITHOUT NOTICE
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2. ONLINE WEB PORTAL DASHBOARD OVERVIEW
Information Profiles Tools & Planning Program Center
Information Profiles are used to
gather important facts that
determine your eligibility and
qualification. Th ese profiles will
be used by the Program
Administrator to complete your
Program application and
determine your eligibility to
participate in Program activities.
There are many calculations
involved in an Affordable
Housing Program. From
calculating the income category
of your household, to
determining your maximum
restricted rent pr ice and utility
allowance, it’s important to
understand the math behind
these Programs.
All Application, Opportunit ies,
Opportunity Drawing s, and
Participation Activit ies are
captured in your Program
Center. As soon as you
complete your initial registrati on,
this is where you’ll spend the
most time participating in the
Program.
Program File Cabinet Program Marketplace Community Center As you start to apply for and
participate in Program activities,
your file cabinet is where you’ll
track progress, exchange
information, and communicate
with Program administrators.
The Program marketplace is
where you can shop for
ownership, rental, and financing
opportunities.
The online community center will
have a classroom, a bulletin
board, and chatroom so you can
stay educated, informed and in
touch with other Program
participants and stakeholders.
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3. ESTABLISHING AN ACCOUNT (HOUSEHOLD PROFILE) IN THE MYHOUSEKEYS (WWW.MYHOUSEKEYS.COM)
The following five (5) actions are the initial steps needed to establish your household’s affordable housing account.
REGISTRATION
PROCESS ACTION OR MILESTONE
1. Initial Signup
Start out by completing our simple registration form. This step collects very basic information from you to establish a User Account, including your name, contact information, and your household size and income.
2. Complete the
Registration Wizard
The next step includes additional details about your address, household members, income profiles, and preference criteria. The preference criteria are described on Step 5 of the Registration Wizard. Completion of the Wizard will create a summary of your household and provide you with access to additional features of the Administrator Platform.
3. Browse the
Marketplace
The Marketplace allows you to shop for Ownership, Rental and Finance Program opportunities that interest you. Make sure to read the Program Profile and get an understanding for how it works, the intent, the rules and the process.
4. Request an
Application I.D.
The Application I.D. allows the Program Provider and Administrator to identify your household as a prospective applicant household. It also puts you on the notification list to receive information and updates.
5. Find an Opportunity
and Enter an
Opportunity
Drawing
Each Opportunity is placed into an Opportunity Drawing that allows HouseKeys to facilitate multiple applicant interest. Application I.D.s are prioritized through a Random Selection Process (Lottery) or by Time and Date Stamp (First -Come- First-Serve).
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4. HOUSEHOLD INFORMATION PROFILES
HouseKeys holds orientation classes t o introduce the Program and help applicant Households organize their application files and prepare for the application process. The application packet is broken down into 10 Household Information Profiles:
# Information
Profile Name
Description Purpose
1 Location Profile Where you live and
where you work
The address where you live and work is an important factor in determining your eligibility. The county you presently live in, or may be moving to, is often used to determine how to categorize your household.
2 Member Profile The people who live in
your housing unit
The number of people in your household determines your household size and household size is used to determine income category.
3 Income Profile Documenting the total
income of all
household members.
Income documentation is required by all household members who are 18 years of age or older
4 Expense Profile Documenting monthly
expense obligations
It’s important to ensure that your total monthly expenses show that you can afford the monthly rent for the unit you are applying for 5 Asset Profile Deposit Funds and
other Assets
You need to document your rental deposit funds. Please note that Assets are included in income calculations using the income shown on statements or calculations used by the Program Underwriter. See Asset Limits below. 6 Liability Profile Your Debt Your debt adds to monthly expenses and the maximum monthly rent that you can afford is an important qualification factor
7 Credit Profile Your Credit Score All three credit bureaus (Equifax, Experian, and TransUnion) are evaluated to ensure you meet minimum credit requirements
8 Public Record
Profile
Collections, Liens,
Bankruptcies and
Foreclosures
These are evaluated to determine whether or not there is any risk that the finalization of lease signing or meeting any of the property management requirements.
9 Demographics
Profile
Applicant
Characteristics
Demographic information is critical to ensure fair housing compliance and to track how Program Providers are meeting their housing goals. 10 Program
Preference Profile
Program Factors that
determine Applicant
Priority
While all applicants may apply for a housing program, applicants that live and work where the program is located are prioritized in many jurisdictions.
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5. APPLICATION PROCESS
5A. APPLICATION PROCESS (ORIENTATION, PRE-APPLICATION, AND PREFERENCES)
The application process is summarized below and on the following pages:
ORIENTATION
• All applicants, co-applicants, married couples, domestic partners, and any person that can or will be on the lease, must complete the Orientation before being eligible to participate in an Opportunity Drawing. Any exceptions to this rule will be posted in the Opportunity Drawing details. Applicants can sign up for an orientation class on the HouseKeys website.
PRE-APPLICATION AND APPLICATION ID ASSIGNMENT
• Request an Application ID in the Program Center
• Answer all of the Pre-Application Questions in the Request Wizard • The applicant will either receive a pass or fail rating based on the information in the pre-application wizard • If the applicant passes, an Application ID will be assigned immediately. If there is a system delay or malfunction, Applicat ion IDs can take up to 10 business days to be assigned.
• An Application ID does not mean you are eligible or approved for the Program. It provides the applicant Household with the ability to enter Opportunity Drawings.
PREFERENCES AND RANKING
In all instances, the live in Campbell / work in Campbell / work-for Campbell preference ( described in Section 9) will be used and verified by HouseKeys during the application process. Applicant Households that meet the stated preference criteria will be assigned a higher ranking. Once the preferred Household list is exhausted, HouseKeys will begin processing the files for the non- preference households.
Continued next page
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5B. APPLICATION PROCESS (OPPORTUNITY DRAWINGS)
Affordable Rental Opportunities are marketed through an Opportunity Drawing (i.e., lottery). Applicant Households enter an Opportunity Drawing using their Application ID number.
OPPORTUNITY NOTIFICATION
• A notification email will be sent out to Application ID holders. When a new Opportunity Drawing is released it will be posted in the Program Center
• Follow the instructions and review the terms in each Drawing Notification. It is the applicant Household’s responsibility to follow all instructions in each Opportunity Drawing, based on the method used. Each Opportunity Drawing announcement will include the selection method, file submission instructions, and one or more deadlines that the applicant Household must meet.
OPPORTUNITY ENTRY
• Once the applicant reviews the Opportunity Drawing information and is certain that he/she can meet ALL listed requirements, the applicant can follow the instructions to Enter Drawing
• Applicant must complete Authorization Form for verification and sharing information with Property Management (landlord) • Applicant must complete the Intent to Abide Form to confirm that the applicant understands the Program Requirements • Applicant Households can only apply for one Opportunity Drawing at any one time. If an applicant Household has entered more than one drawing, the lowest ranked submission will be chosen. Applicant Households are allowed to opt out of any drawing as long as the “opt out form” is submitted before an applicant Household enters another drawing. • If there is another Opportunity Drawing available at the same time, the applicant can opt out of one Opportunity Drawing to ente r another, if it is done before the Opportunity Drawing submission deadline. • If a household applies for two opportunities at the same time, and obtains two priority numbers, the applicant will be assigned the lower priority number.
• In some cases, the Opportunity Drawing will remain open until all applicable units are leased. Anyone who enters their Application ID into an Opportunit y Drawing after the first deadline will be added to the end of the list using the time and date stamp of their Opportunity Drawing entry.
• Ranking and file request numbers are issued to set the processing order for each Opportunity Drawing. A new ranking and file request number will be issued every time an applicant Household participates in a new Opportunity Drawing. Ranking, file request, and Application ID numbers are not transferable.
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5C. APPLICATION PROCESS (OPPORTUNITY DRAWING METHODS)
When an Opportunity becomes available, HouseKeys uses the methods outlined below to determine the order in which Application IDs and files will be ranked and organized for review.
METHOD 1: LOTTERY SELECTION AND ASSIGNMENT
All applicant Households that enter their Application ID numbers into an Opportunity Drawing by the deadline will receive an Application ID ranking. If a Lottery is held, Application IDs will be chosen at random and assigned an Unfiltered Ranking nu mber based on the order in which they were drawn.
Each Application ID on the Unfiltered Ranking list will be re- ordered to account for the Live/Work Preference and a new ranking list Filtered by Live/Work Preference will be created. The Unfiltered Ranking num ber becomes the tie breaker between households with the same preference category.
Please note: Applicant Households who do not meet the Occupancy Standard will be assigned a lower priority number, regardless of lottery placement, or other eligibility criteria (e.g., First Time Home Buyer [FTHB]).
METHOD 2: FORM SUBMITTAL (DATE & TIME STAMP) TIE-BREAKER
All applicant Households that enter their Application ID numbers into an Opportunity Drawing by the deadline will receive an Application ID ranking. The Unfiltered Ranking in this method is based on the time and date stamp that their entry form was completed.
As with Method 1, the Unfiltered Ranking number list is re- ordered based on Live/Work Preference and the Unfiltered Ranking number is used as the tie breaker between households with the same preference category.
Please Note: Applicant Households that do not meet the Occupancy Standard will be ranked last.
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5D. APPLICATION PROCESS (APPLICATION REVIEW)
TENANT APPLICATION REVIEW AND LANDLORD SCREENING
• The Administrator will determine the processing order of the applicants and their priority ranking • Once the Administrator has finalized the application ranking and processing order, a list will be sent to the landlord to beg in the background and credit check process using the previously signed authorization form. If the Administrator performs the background and credit check, this will be done immediately following the application ranking and processing order determination.
PROGRAM APPLICATION PACKAGE COMPLETION
• Once written confirmation has established that an applicant has met all requirements after credit bank background check, the Administrator will request the full application package for Underwriter review. • Applicants must provide and return all necessary documents to underwrite the file to the Administrator within 3 business days. • Documentation needs to be dated within 30 days of submission. • Applicants/Co-applicants, and or household members who submit inaccurate information, altered documentation, or false documentation or certifications, will be disqualified.
• Once all documents are received, the Applicant will be provided with a Submission ID which will be their file in line for Processing and Underwriting
APPLICATION REVIEW
• The application package will be reviewed, and if complete, will be submitted to the underwriter for review • If the application is incomplete, applicants will be given written notice to respond with any file updates or missing items • Applications that remain incomplete after notifications and applicable grace periods, will not be processed or forwarded to the Underwriter for final review
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5E. APPLICATION PROCESS (APPLICATION UNDERWRITING AND APPEAL)
APPLICATION UNDERWRITING
• The Underwriter will complete the review and issue a Program Eligibility and Qualification Certification (AKA “Approval Letter”). • It is important to note that the Program Underwriter may request additional items from the applicant. If the applicant does not respond within the grace period, or a denial is issued, the Underwriter will move to the next Submission ID holder. • If approved, the Administrator will notify the landlord of the outcome so that the applicant can move on with the leasing documentation and lease/contract signing as described in the next section.
APPEAL
• If the applicant does not agree with the Processor or Underwriter decision, the applicant Household will have 3 business days to appeal. The applicant Household will need to submit clear and sufficient documentation, along with an appeal form that details why they feel the decision is inaccurate, within the timeframe given. • Administrator Management will review the Appeal and all documentation. • Administrator will contact the applicant regarding the status of the appeal approximately 7 business days from the date the complete Appeal Package was submitted. Administrator may require additional time as will be indicated during the status notification
• Administrator is unable to hold properties for households in the application or appeal process. Administrator will move on to the next Application ID holder after the initial appeal review
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6. BELOW MARKET RATE MAXIMUM RENTAL RATES (Updated Annually)
Maximum Rental Rates: Maximum BMR rental rates are updated annually using the formula defined in the City’s Inclusionary Ordinance.
"Affordable rent" means monthly rent, including utilities and all fees for housing services, which do not exceed the following:
1. For lower-income households: one-twelfth of thirty percent of sixty percent of area median income, adjusted for assumed household size based on presumed occupancy levels of one person in a studio apartment, two persons in a one bedroom unit, three persons in a two bedroom unit, and one additional person for each additional bedroom thereafter.
2. For very low-income households: one-twelfth of thirty percent of fifty percent of area median, adjusted for assumed household size based on presumed occupancy levels of one person in a studio apartment, two persons in a one bedroom unit, three persons in a two bedroom unit, and one additional person for each additional bedroom thereafter.
The allowance for utilities is based on estimates published by the Santa Clara Housing Authority and the California Department of Housing and Community Development (HCD).
Area median income (AMI) is the household income for the median (i.e., middle) househol d in a region. Each year, the Federal Department of Housing and Urban Development (HUD) calculates the median income for every metropolitan region in the country.
The United States Census Bureau uses a series of terms to determine the definition of a household. The basic meaning of Household is an occupied housing unit. A Householder (Primary Applicant) is the person whose name the housing unit is rented to or owned by. Members of the household share familial ties, living space, expenses, debts and/or assets with the Householder.
Rent Adjustments: The BMR rental rate may be increased once in a 12- month period. Rent adjustments will be based on the updated income limits published by the California Department of Housing and Community Development (HCD) annually and posted on the Administrator website.
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7. TENANT SELECTION, LEASE SIGNING, AND MOVE IN
Once an applicant is selected and their file is fully underwritten, and a Program Approval is issued, the Administrator will contact the Landlord and provide the name of the selected applicant to coordinate the next step which is signing the lease agreement and all Program related documents.
1. Lease/Contract Signing:
a. The landlord will schedule an appointment with the applicant to go over all documents and sign the lease agreement. b. The landlord may ask the tenant for other documents needed to finalize the move-in (e.g. renter’s insurance). c. The applicant must comply with all Landlord requirements.
2. Move in Process:
a. The landlord may start the move- in process with the applicant once all of the rules and regulations for the project are explained and accepted by the applicant.
b. The landlord shall provide Administrator staff with a copy of the lease agreement, renter’s insurance, and all other documents deemed necessary to document the file for Administrator records. c. Once all documents have been approved by the landlord and Administrator and signed by the applicant, the “applicant” becomes a “participant” and must comply with all BMR Program rules and regulations, including but not limited to submitting all required Annual Certification documentation described on the following page.
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8. PARTICIPANT / TENANT COMPLIANCE, RESONSIBILITIES, AND ANNUAL RECERTIFICATION
Participant/Tenant Compliance and Responsibilities:
1. The tenant shall comply with all rules and regulations set forth by the Landlord or development.
2. The tenant shall also comply with all Affordable Program (BMR) requirements for the duration of the lease.
3. Tenant must notify Owner/Manager within ten (10) working days of any and all changes in family structure, family size, employment income etc.
Annual Recertification Process:
1. All BMR tenants shall be recertified once per year, at the end of the lease term, for compliance with all Program requirements including, but not limited to income and family size.
2. Administrator will initiate the Recertification Process with the Owner/Manager as described in the next section.
3. The Program Coordinator will require a full and complete application package for any household asking for a lease extension or a new lease.
4. The tenant will be required to sign the “Intent to Abide” disclosure/form.
5. The tenant will have 30 days to submit all required documentation, following notification of the annual recertification process.
6. Refusal by tenant to promptly provide all required documents for re -certification will result in a 60 -day Termination of Lease and a Notice to Vacant will be sent out.
Enforcement
1. If tenant fails to cure t he violation, the City/Administrator will exercise its legal right to coordinate with Property Owner, Landlord, and/or the Management Company to initiate Unlawful Detainer proceedings
2. The City/Administrator reserves the option to apply to a court of competent jurisdiction if it deems legal action is appropriate
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9. THE APPLICATION FILE STRUCTURE & APPLICATION CRITERIA
Program Eligibility and Qualification Criteria
The primary role of a Program Administrator is to determine the eligibility and qualification of applicant Households. A Program Processor serves the role of gathering the documents needed to evaluate the application and a Program Underwriter reviews the application to determine if it meets Program requirements.
It is important to understand that there is a lot of information needed to determine whether an application meets all the Program requirements. The application criteria used to determine whether an applicant Household will be approved fall into one of two categories:
• Program Eligibility Criteria: These are standards that define the characteristics of the target households who are best served by the Program and help the Program provider meet its intended goals. These standards often follow legal definitions and published documentation requirements. Underwriters evaluate Program Eligibility Criteria to determine if households “check eligibility boxes” that include, but are not limited to, residence address, employment address, household size requirements, total household income requirements, and whether an applicant meets the leg al standard to be defined as a first-time homebuyer. Program Underwriters need to consider Program eligibility for the years prior to the rental application.
• Program Qualification Criteria: Once it is determined that an applicant is eligible for the Program, the Program Underwriter must also make sure that the rental opportunity is affordable for the applicant and that they are tenant-ready. In addition to requiring applicants attend orientation classes, the underwriter ensures that the tenant understan ds what they are signing up for and is comfortable with the annual income recertification.
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10A. ELIGIBILITY FACTORS AND PREFERENCE CRITERIA FOR RENTAL OF BMR UNITS
The City’s Inclusionary Housing Ordinance establishes a priority system for allocating the limited number of affordable rental units.
First priority (for up to ten percent of all affordable units) shall be given to income eligible employees of the City of Cam pbell. Second priority is given to income eligible existing Campbell residents and third priority is given to income eligible persons employed within the city limits of the City of Campbell. If a particular address is in question, Administrator will check with City staff to determine if the property is within the City’s jurisdictional boundaries.
The preference system will be used to establish a ranking of applicants. An eligible household will be ranked according to where they live or work . While an applicant who lives or works within the city limits will have priority over an applicant who does not, residency/employment status is not a requirement for the Program, and all individuals and households may apply. Households comprised of applicants who do not reside or work in Campbell may occupy a BMR unit if there are no eligible Campbell residents or workers on the eligibility list for occupancy.
PROGRAM PREFERENCE CRITERIA*
Priority 1: Work for City
(for up to 10% of units)
Must currently work for the City of Campbell government entity at least 20-hours per week, and held their position for at least 6-months Employee must have passed probation
Priority 2: Live in Campbell Must currently live in Campbell and maintained residency for at least 6-months Priority 3: Work in Campbell
Must currently work at a business located in Campbell
at least 20-hours per week, and held position for at least 6-months * This category includes Campbell School District employees . The district office is located in Campbell although the school building may be located in another city
*Eligibility will be evaluated at the time of lottery submission and verified again prior to occupancy
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10B. OCCUPANCY STANDARDS FOR PROGRAM UNITS
Applicant/Co-Applicants must occupy the property as their principal residence. This means that the Applicant/Co-Applicants must use the property as their primary place of residence and the property must be tenant-occupied upon renting for the term of the lease agreement. Use of the property for additional rental purposes, including temporary leases, sub- leasing or room rentals are not allowed under the Program and will trigger immediate action.
To ensure that the City's limited BMR units are used efficiently, a household must be of a size equal to the number of bedrooms in the BMR unit. Pursuant to fair housing laws, the maximum occupancy allowed in a BMR Unit is two people per bedroom, plus one additional person. The table below shows the minimum and maximum household size based on the number of bedrooms. In some cases, an exception to the minimum standard may be made where no other qualified renter can be approved within 30- days of holding the lottery.
The City’s BMR Administrator will verify household occupancy once per year for the Term of the Lease Agreement between the City and the renter(s).
Note: Maximum Household size is subject to change per property management or Affordably Housing Agreement documents.
PROGRAM OCCUPANCY STANDARDS
Number of Bedrooms Minimum Household Size Maximum Household Size One 1 3
Two 2 5
Three 3 7
Four 4 9
Five 5 11
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10C. INCOME ELIGIBILITY CRITERIA
Income Eligibility is based on household size (number of persons in the household) and whether a household’s income is below income category limits published annually by the California Department of Housing and Community Development (HCD) on their HCD website as well as the Program Website. These resources should be used to determine the income percentage and income category that is applicable to your household.
Campbell’s housing ordinance presently defines the three income types most often used in their affordable homeownership program
• “Very low-income Household” means a household whose household income does not exceed very low-income limits applicable to Santa Clara County
• “Lower-Income Household” means a household whose household income does not exceed the lower income limits applicable to Santa Clara County.
• “Moderate-Income Household” means a household whose household income does not exceed one hundred twenty percent of the area median income applicable to Santa Clara County
It is very important for the applicant Household to know BOTH:
• Applicant Household Income as a percentage of the published County Median Income (calculated by dividing Household Income by the published Median Income Amount) applicable to your household size • Whether or not applicant Household Income is below the published income category limit applicable to your household size (e.g. Extremely Low, Very Low, Low, Median, or Moderate)
Income earned from assets, such as dividends, interest, rental income, business income, etc., is included in the household’s annual income pursuant to the Code of Federal Regulations , Title 24, Part 5 income inclusions (§ 5.609). Income calculation is also guided by California Code of Regulations , Title 25, Chapter 6.5 Program Operations, Gross Income (§ 6914). To qualify for the City of Campbell BMR Program, your househol d’s combined gross annual income cannot exceed the maximum income limit for your household size, as established by the HCD. All household members ages 18 or older must have their income verified. Household members that do not work or will not have any income in the next 12 months must complete a zero-income affidavit.
Note: The income categories for a particular development may vary in accordance with the Affordable Housing Agreement.
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10D. ASSET LIMITATION
In addition to meeting the income limit, there are restrictions on the amount of assets that a household may have to be eligible for the City of Campbell’s Program. For households applying to be a renter of a BMR unit, the limit is 100% of household AMI.
Asset limit = 100% of household AMI
The Administrator will review household income and assets for all occupants, including temporary occupants. To determine total household assets, Administrator will review the household’s total assets according to monthly financial statements and/or other valuations. A six-month average will be calculated just prior to Program application to determine eligibility and avoid applicant “asset dumping” (asset liquidation or transfer to other parties). Assets held in IRS-recognized retirement accounts (401-k’s, IRA’s, etc.) are not included for the purpose of determining whether an Applicant meets the Program asset limits. However, retirement and insurance payments will be used to determine gross household income.
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11. QUALIFICATION FACTORS
RENT TO INCOME RATIO
• To qualify, applicants must have income at least 2 times the tenant paid rental amount for Below Market Rent ( BMR) rental units. Applicants may be accepted with conditions, such as additional security deposit or guarantor. • No more than 50% of the applicant’s income can go to the rent payment. For example, if income is $30,000, the maximum rent cannot exceed $1,250.00 (50% of $30,000/12). Additional debts will also be taken into consideration. • If a guarantor is required, the guarantor’s income must be 5 times the tenant paid rental amount.
CREDIT
• The applicant shall pay the required non-refundable fee to the landlord in the form of a money order or cashier check. • A credit report is required for all applicants and co-applicants • All applicants/co-applicants must pass the landlord’s credit check and a background check. • The minimum credit score is 620 (in addition to Landlord Requirements). • An applicant with an unsatisfactory credit report will be denied. • Excessive collection accounts, including utility accounts (regardless of status) will result in denial of the rental application. All utility collection accounts within the last 2 years must be paid in full and confirmation presented with the application in order to be approved.
• An applicant whose credit report contains more positive than negative history may be approved subject to an additional deposit. • Bankruptcy (regardless of discharge) or repossession within the last 2 years will be grounds for denial of the application or may require an additional deposit for approval.
• Applicants with a foreclosure history over 2 years old may be accepted without an additional deposit. Applicants with a more recent foreclosure history may be approved with an additional deposit. • Rental housing debt, evictions, or collections will result in automatic denial of the application. • Any unresolved tax liens will negatively impact the overall applicant screening result.
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11. QUALIFICATION FACTORS (CONTINUED)
BACKGROUND SCREENING
• All applicants will be screened for criminal history at initial application. • A f elony conviction or adjudication for a felony offense against persons or property in the last seven years will result in an automatic denial of application.
• A misdemeanor conviction may result in denial of application or lease renewal with conside ration given to the nature of the conviction.
• Applicants or current residents appearing on the list of known terrorists and/or wanted fugitives as provided by the Office of Foreign Asset Control (OFAC), federal agencies (including the FBI or other state and local law enforcement agencies) will be denied.
GUARANTORS
• Acceptable guarantors must reside in the United States and qualify in each of the above categories. An additional deposit may be accepted if a qualified guarantor is not available.
RENT HISTORY
• Applicants (except first time renters) must have at least 12 months of verifiable and positive residency history immediately preceding application.
• First-time renters or applicants with no verifiable residency history will require payment of an additional deposit or acceptable guarantor in lieu of immediate past rental history.
• Residency history that includes prior evictions, multiple late payments, returned checks, poor housekeeping, conduct disturbi ng the rights and comforts of other residents, unauthorized occupants, property damage or failure to adhere to the policies and regulations of the community or management company will result in automatic denial of the application. • Landlord reference indicating the landlord would not re-let to the applicant due to lease violation is grounds for automatic denial of the application.
• If the applicant owned his/her immediate prior residence, mortgage history will be verified through a c redit report or other documentation of homeownership.
IDENTIFICATION
All applicants will be asked to provide positive identification including a copy of a valid driver’s license and social security card.
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12. INCOME INCLUSION AND EXCLUSION
The Federal and State government both have rules that determine how Gross Income is calculated and what income types are included and excluded from the Gross Income total.
Application Criteria Description
• The gross amount, before any payroll deduction, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services
• The net income from the operation of a business or profession (for this purpose, expenditure for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business). The adding back of certain deductions will be subject to underwriter approval (e.g. depreciation). • Interest, dividends and other net income of any kind from real or personal property. • Payments in lieu of earnings, su ch as unemployment and disability compensation, worker’s compensation and severance pay (except as outlined in “exclusions” section)
• Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on a passbook savings rate, up to 10%. The current passbook savings rate used by the Administrator is 2.5% • Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling;
The following is an abbreviated list of items that are excluded from income:
• Casual, sporadic or irregular gifts
• Amounts which are specifically for or in reimbursement of the cost of medical expenses • Lump-sum additions to family assets such as inheritances, insurance payments (including payments under health and accident insurance and worker’s compensation), capital gains and settlement for personal or property losses • Foster child care payments
• The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is in excess of the amount actually charged the eligible household
• See full inclusion list on the Program Website
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Income Review Procedures
Income maximums are based on “gross” income derived from all sources as detailed in Internal Revenue Code (26 USC Section 61), whether or not exempt from federal income tax. Administrator projects future income based on the gross income on each applicant’s past income. In addition to other items deemed necessary to make this income determination, the Administrator may request up to 4 of the most recent year -to-date pay statements and the previous year’s final pay statement. Ad ministrator must review income documentation for all Household members 18 years and older, regardless of dependency status. Applicants without income will need to sign a Zero-Income Affidavit provided by the Administrator. Unemployment benefits are considered income.
Please Note: All Variable Income is subject to Underwriter Approval. Each circumstance is different and must be considered using the documentation in the file. The terminology in this Guide is meant to be used as a basic guide to help pros pective applicant Household’s understand how this income type is considered during the underwriting process.
For employed applicants, annual income is generally derived by dividing the year-to-date gross income by the current pay period count and then by annualizing an estimated pay period amount by the total pay period count over one year (12 months). Please note that a Verbal and Written Verification of Employment may be required to be completed by the Employer issuing the pay statements.
# How Often Paid How to Determine Annual Income
1 Paid Annually Annual Gross Pay
2 Paid Monthly Use monthly gross payment x 12
3 Paid Twice Monthly Twice monthly gross pay x 2 pay periods x 12 4 Paid Biweekly Biweekly gross pay x 26 pay periods
5 Paid Weekly Weekly gross pay x 52 pay periods
6 Paid Hourly Hourly gross pay x average # of hours per week x 52 weeks 7 Government Employees with Annual Award Letters Income may be derived by referring to the Annual Award Letter
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Variable Income (Tips, Overtime, Bonuses, etc.)
Please Note: All Variable Income is subject to Underwriter Approval. Each circumstance is different and must be considered using the documentation in the file. The words below are meant to be used as a basic guide to help prospective applicant Household’s understand how this income type is considered during the underwriting process.
Tips, Overtime, Bonus, and other “variable income amounts” (amounts that change with each pay period) will be annualized separately from the base income outlined on the chart above. All income will be annualized and totaled unless the applicant can provide documentation from the employer. The employer must be available to complete a verbal verification of employment with the Administrator. In cases, where the variable income item is a one -time occurrence, the amount will be removed from the annualized calculation of income and added in a one-time total to determine the annual income.
Example: An applicant earns $60,000 per year based on base m onthly pay statements of $5,000 ($5,000 x 12). In addition to the base income show, the applicant received a $2,500 one-time bonus in the first quarter of the year. If annualized, the $2,500 quarterly bonus would total $10,000 and the total income would be $70,000 ($60,000 base + $10,000 annualized bonus income). If proper documentation shows that the $2,500 is a one -time payment, and Administrator is able to verify and validate this information, the $2,500 would be added to the $60,000 base. The alternative total income would be $62,500 ($60,000 base + $2,500 one-time bonus).
Seasonal Workers: Administration will not annualize current income for seasonal workers who provide a Verification of Employment from their employer (s) verifying that the work does not occur year-round
Self-Employed Income: All self-employed applicants must submit a notarized Self -Employed Affidavit provided by Administrator. If self-employed for 2 or more years, Administrator will use verifiable (verified using Form 4506-T) federal income tax returns and review the net income for as many as 3 years of tax returns to determine the projected annual income. If self -employed less than 2 years, Administrator will review the submitted Profit & Loss Statement and use it to determine pr ojected annual income. Additional documentation may be needed from the Self-Employed Household Member in order to determine projected annual income.
Calculating Income from Cash Income: In the case of an applicant who is paid cash for employment, Administrator will require a Verification of Employment from the applicant’s employer to confirm annual income and IRS Tax Verification Form 4506-T to confirm that no taxes were paid.
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Variable Income (Continued)
Income from Commercial Property or Land Owned: The net income from any commercial property or land owned by any applicant shall be counted toward the annual Household income.
Unemployed Applicants: Unemployed applicants who are receiving no income at all should submit a Zero -Income Affidavit as provided by Administrator in place of income statements. Applicants receiving unemployment benefits do not need to complete the Zero-Income Affidavit as unemployment benefits are considered income.
Additional Notes on Income Calculation
If applicant has recently changed positions with employer, HouseKeys will determine the effect of the change on the applicant’s eligibility and opportunity to receive bonus or overtime pay in the future
If applicant who has historically been employed on a part -time basis indicates that he or she will now be working full time (or vice versa), obtain written confirmation from borrower’s employer
A verbal verification of employment (VOE) may be required for each employer
All material alterations, and/or omissions from the initial Registration, Application ID Questions, Opportunity Drawing Entry Form, Application Submission and Supporting Documents; including but not limit ed to household size, income and asset information, etc., are not permissible and will render all future re-submissions ineligible for review and approval for a period of one year. Exceptions for re-submissions are significant life events such as a job/car eer change, marriage, death, or the birth of a child and are at the discretion of the Administrator.
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13. REASONABLE ACCOMMODATION AND EXCEPTION REQUESTS
Accommodations in Program rules, policies, practices, or services, when such accommodations may be necessary to afford person s with disabilities, or a household with a member with disabilities, equal opportunity to apply for a BMR home. The requested accommodation must be reasonably related to the particular disability of the household member, and must be necessary in order to provide the household with equal access to housing.
Households or individual applicants unable to produce any particular document required in the application form for legitimate reasons beyond their control (natural disaster, military service, refugee status, domestic violence, witness protection program, disability etc.) may request an exception for that particular document.
Upon such request, Administrator may request a reasonably equivalent alternative document, and/or any additional supporting documentation deemed necessary by the Program Processor and Program Underwriter to verify eligibility of the Applicant/Co- Applicant and/or their entire Household.
Exceptions related to disabilities (reasonable accommodations) may be requested according to this procedure, with a brief description of the exception(s) needed due to the Applicant’s disability. The City and Administrator wil l consider the requested exception and will provide a written response within 14 calendar days, stating if the requested exception can be granted in full or part and the reason for such decision. The Administrator may approve or deny such request. If denied, Applicants may submit an appeal of such denial to the City.
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14. LANDLORD COMPLIANCE AND OWNER / MANAGEMENT RESPONSIBILTIES
1. General Compliance: The landlord shall comply with all Program requirements and provide requested documentation to the City/Administrator in accordance with these Program Guidelines, the Developers Affordability Agreement , and the City’s Inclusionary Housing Ordinance.
2. Current Records. The landlord shall keep current and updated BMR tenant/participant records that relate to Program eligibility (e.g. household member occupancy changes, employment loss, income changes, etc.).
3. Annual Recertification: Owner / Manager shall, upon request, provide Administrator with all required Annual Audit documents listed on the Program checklist, for review and approval, as part of the annual recertification process.
4. Tenant Income Changes: Following notification to and verification by Administrator , the Owner / Manager shall terminate the tenant’s lease and send the tenant a not ice to vacate if the tenant’s income level exceeds the maximum income limit for that particular PROGRAM unit.
5. Vacancies: Owner / Manager shall notify Administrator in writing, using Exhibit A of the rental guide, upon vacancy of any BMR unit.
a. Administrator will set up a lottery and start processing applications within 60 to 90 days of receiving the notice. b. Administrator will provide a list of potential tenants to the Owner / Manager for review and approval. c. Owner / Manager shall provide Administrator with the following documents for all approved tenants:
1) Copy of the credit report
2) Copy of the background check.
3) Letter of approval once a tenant has been approved by the Owner / Manager for occupancy. 4) copy of the lease agreement
5) Updated rent roll
6) All other relevant reports or documents, as requested by the Administrator / City
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City of Campbell / HouseKeys
Below Market Rate (BMR) Program
Ownership Application Guide
[November 2018 Draft]
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TABLE OF CONTENTS
1. Introduction Page 2
2. Online Web Portal Page 3
3. Establishing An Account Page 4
4. Household Information Profiles Page 5
5. Application Process Page 6
6. Below Market Rate (BMR) Pricing And City’s Option To Purchase Page 11
7. Application File Structure And Criteria Page 12
8. First-Time Homebuyer Education And Title Requirements Page 14
9. Eligibility And Preference Criteria Page 15
10. Application Criteria Page 19
11. Transaction And Document Handling Page 26
12. Reasonable Accommodation Page 28
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1. INTRODUCTION
HouseKeys is the Cit y of Campbell ’s Affordable Housing Program Administrator. This Ownership Application Guide includes the guidelines, policies, and procedures that comprise the Affordable Ownership Program for Below Market Rate (BMR) homes.
Buying, owning, and selling an Affordable Below Market Rate (BMR) Ownership Unit differs in many ways from buying, owning, and selling at market rate. It is important that the buyers and sellers of BMR Ownership Units understand the rules and procedures of the City’s Affordable Housing Program (“Program”) fully.
The Program Application Guide and other relevant information (e.g., Ordinance procedures and income limits) will be amended and updated from ti me to time. All proposed changes are subject to approval by the City Council prior to implementation and shall comply with state and federal affordable housing laws.
Updates to this Program Application Guide and other relevant information will be posted on the HouseKeys website
Please contact HouseKeys with any questions or concerns regarding this document or any other question regarding the City’s affordable housing program:
Online: http://www.housekeys2.com
Email: [email protected]
Phone: 1-877-460-KEYS (5397)
Address: 70 N. First Street Campbell, CA 95008
ALL GUIDELINES ARE SUBJECT TO CHANGE WITHOUT NOTICE.
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2. ONLINE WEB PORTAL DASHBOARD OVERVIEW
Information Profiles Tools & Planning Program Center
Information Profiles are used to
gather important facts that
determine your eligibility and
qualification. Th ese profiles will
be used by the Program
Administrator to complete your
Program application and
determine your eligibility to
participate in Program activities.
There are many calculations
involved in an Affordable
Housing Program. From
calculating the income category
of your household, to
determining your maximum
restricted rent price and utility
allowance, it’s important to
understand the math behind
these Programs.
All Application, Opportunities,
Opportunity Drawings, and
Participation Activities are
captured in your Program
Center. As soon as you
complete your initial registration,
this is where you’ll spend the
most time participating in the
Program.
Program File Cabinet Program Marketplace Community Center As you start to apply for and
participate in Program activities,
your file cabinet is where you’ll
track progress, exchange
information, and communicate
with Program administrators.
The Program marketplace is
where you can shop for
ownership, rental, and financing
opportunities.
The online community center will
have a classroom, a bulletin
board, and chatroom so you can
stay educated, informed and in
touch with other Program
participants and stakeholders.
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3. ESTABLISHING AN ACCOUNT (HOUSEHOLD PROFILE) IN THE MYHOUSEKEYS (WWW.MYHOUSEKEYS.COM)
The following five (5) actions are the initial steps needed to establish your household’s affordable housing account.
REGISTRATION
PROCESS ACTION OR MILESTONE
1. Initial Signup
Start out by completing our simple registration form. This step collects very basic information from you to establish a User Account, including your name, contact information, and your household size and income.
2. Complete the
Registration Wizard
The next step includes additional details about your address, household members, income profiles, and preference criteria. The preference criteria are described on Step 5 of the Registration Wizard. Completion of the Wizard will create a summary of your household and provide you with access to additional features of the Administrator Platform.
3. Browse the
Marketplace
The Marketplace allows you to shop for Ownership, Rental and Finance Program opportunities that interest you. Make sure to read the Progr am Profile and get an understanding for how it works, the intent, the rules and the process.
4. Request an
Application I.D.
The Application I.D. allows the Program Provider and Administrator to identify your household as a prospective applicant household. It also puts you on the notification list to receive information and updates.
5. Find an Opportunity
and Enter an
Opportunity
Drawing
Each Opportunity is placed into an Opportunity Drawing that allows HouseKeys to facilitate multiple applicant interest. Application I.D.s are prioritized through a Random Selection Process (Lottery) or by Time and Date Stamp (First -Come- First-Serve).
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4. HOUSEHOLD INFORMATION PROFILES
HouseKeys holds orientation classes t o introduce the Program and help applicant Households organize their application files and prepare for the application process. The application packet is broken down into 10 Household Information Profiles:
# Information
Profile Name
Description Purpose
1 Location Profile Where you live and
where you work
The address where you live and work is an important factor in determining your eligibility. The county you presently live in, or may be moving to, is often used to determine how to categorize your household.
2 Member Profile The people who live in
your housing unit
The number of people in your household determines your household size and household size is used to determine income category.
3 Income Profile Documenting the total
income of all
household members.
Income documentation is required by all household members who are 18 years of age or older
4 Expense Profile Documenting monthly
expense obligations
It’s important to ensure that your total monthly expenses show that you can afford the monthly rent for the unit you are applying for 5 Asset Profile Deposit Funds and
other Assets
You need to document your rental deposit funds. Please note that Assets are included in income calculations using the income shown on statements or calculations used by the Program Underwriter. See Asset Limits below. 6 Liability Profile Your Debt Your debt adds to monthly expenses and the maximum monthly rent that you can afford is an important qualification factor
7 Credit Profile Your Credit Score All three credit bureaus (Equifax, Experian, and TransUnion) are evaluated to ensure you meet minimum credit requirements
8 Public Record
Profile
Collections, Liens,
Bankruptcies and
Foreclosures
These are evaluated to determine whether or not there is any risk that the finalization of lease signing or meeting any of the property management requirements.
9 Demographics
Profile
Applicant
Characteristics
Demographic information is critical to ensure fair housing compliance and to track how Program Providers are meeting their housing goals. 10 Program
Preference Profile
Program Factors that
determine Applicant
Priority
While all applicants may apply for a housing program, applicants that live and work where the program is located are prioritized in many jurisdictions.
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5. APPLICATION PROCESS
5A. APPLICATION PROCESS (ORIENTATION, PRE-APPLICATION, AND PREFERENCES)
The application process is summarized below and on the following pages:
ORIENTATION
• All applicants, co-applicants, married couples, domesti c partners, and any person that can or will be on title, must complete the Orientation before being eligible to participate in an Opportunity Drawing. Any exceptions to this rule will be posted in the Opportunity Drawing details. Applicants can sign up for an orientation class on the HouseKeys website.
PRE-APPLICATION AND APPLICATION ID ASSIGNMENT
• Request an Application ID in the Program Center
• Answer all of the Pre-Application Questions in the Request Wizard • The applicant will either receive a pass or fail rating based on the information in the pre-application wizard • If the applicant passes, an Application ID will be assigned immediately. If there is a system delay or malfunction, Applicat ion IDs can take up to 10 business days to be assigned.
• An Application ID does not mean you are eligible or approved for the Program. It provides the applicant Household with the ability to enter Opportunity Drawings.
PREFERENCES AND RANKING
In all instances, the live in Campbell / work in Campbell / work-for Campbell preference (described in Section 9) will be used and verified by HouseKeys during the application process. Applicant Households that meet the stated preference criteria will be assigned a higher ranking. Once the preferred Household list is exhausted, HouseKeys will begin processing the files for the non- preference households.
Continued next page
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5B. APPLICATION PROCESS (OPPORTUNITY DRAWINGS)
Affordable Ownership Opportunities are marketed through an Opportunity Drawing (i.e., lottery). Applicant Households enter an Opportunity Drawing using their Application ID number.
OPPORTUNITY NOTIFICATION
• A notification email will be sent out to Application ID holders. When a new Opportunity Drawing is released it will be posted in the Program Center
• Follow the instructions and review the terms in each Drawing Notification. It is the applicant Household’s responsibility to follow all instructions in each Opportunity Draw ing, based on the method used. Each Opportunity Drawing announcement will include the selection method, file submission instructions, and one or more deadlines that the applicant Household must meet.
OPPORTUNITY DRAWING ENTRY
• Once the applicant reviews the Opportunity Drawing information and is certain that he/she can meet ALL listed requirements, the applicant can follow the instructions to Enter Drawing
• Applicant must complete Authorization Form for verification and sharing information with Lender • Applicant must complete the Intent to Abide Form to confirm that the applicant understands the Program Requirements • Applicant Households can only apply for one Opportunity Drawing at any one time. If an applicant Household has entered more than one drawing, the lowest ranked submission will be chosen. Applicant Households are allowed to opt out of any drawing as long as the “opt out form” is submitted before an applicant Household enters another drawing. • If there is another Opportunity Drawing available at the same time, the applicant can opt out of one Opportunity Drawing to enter another, if it is done before the Opportunity Drawing submission deadline. • If a household applies for two opportunities at the same time, and obtains two priority numbers, the applic ant will be assigned the lower priority number.
• In some cases, the Opportunity Drawing will remain open until all applicable units are sold . Anyone who enters their Application ID into an Opportunity Drawing after the first deadline will be added to the end of the list using the time and date stamp of their Opportunity Drawing entry.
• Ranking and file request numbers are issued to set the processing order for each Opportunity Drawing. A new ranking and file request number will be issued every time an applicant Household participates in a new Opportunity Drawing. Ranking, file request, and Application ID numbers are not transferable.
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5C. APPLICATION PROCESS (OPPORTUNITY DRAWING METHODS)
When an Opportunity becomes available, HouseKeys uses the methods outlined below to determine the order in which Application IDs and files will be ranked and organized for review.
METHOD 1: LOTTERY SELECTION AND ASSIGNMENT
All applicant Households that enter their Application ID numbers into an Opportunity Drawing by the deadline will receive an Application ID ranking. If a Lottery is held, Application IDs will be chosen at random and assigned an Unfiltered Ranking nu mber based on the order in which they were drawn.
Each Application ID on the Unfiltered Ranking list will be re- ordered to account for the Live/Work Preference and a new ranking list Filtered by Live/Work Preference will be created. The Unfiltered Ranking num ber becomes the tie breaker between households with the same preference category.
Please note: Applicant Households who do not meet the Occupancy Standard will be assigned a lower priority number, regardless of lottery placement, or other eligibility criteria (e.g., First Time Home Buyer [FTHB]).
METHOD 2: FORM SUBMITTAL (DATE & TIME STAMP) TIE-BREAKER
All applicant Households that enter their Application ID numbers into an Opportunity Drawing by the deadline will receive an Application ID ranking. The Unfiltered Ranking in this method is based on the time and date stamp that their entry form was completed.
As with Method 1, the Unfiltered Ranking number list is re- ordered based on Live/Work Preference and the Unfiltered Ranking number is used as the tie breaker between households with the same preference category.
Please Note: Applicant Households that do not meet the Occupancy Standard will be ranked last.
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5D. APPLICATION PROCESS (LOAN REQUIREMENTS, APPLICATION FILE REQUEST, AND APPLICATION COMPLETION)
MORTGAGE LOAN REQUIREMENTS
The applicant Household must obtain a loan pre-approval from an Administrator-approved Lender to enter an Opportunity Drawing.
Applicant Household must have acceptable payment-to-income ratios and show enough liquid assets (e.g. cash) to successfully close on the proposed home purchase. Any down payment assistance or closing cost assistance that will be used will need to have a written pre-approval from the program provider as well.
• Applicants must obtain a m ortgage pre-approval letter, on mortgage company letter, with loan officer information, including their National Multistate License System (NMLS) ID number and packet must include:
o Uniform Residential Loan Application and Uniform Underwriting and Transmittal Summary o Verification of Employment and Verification of Assets o Credit Report and Automated Underwriting System Findings (e.g. Desktop Underwriter Findings)
APPLICATION RANKING AND FILE REQUESTS
• The Opportunity Drawing Terms and Notifications will indicate when, where and how the Program Application Package needs to be submitted
• Applicants must provide a complete Program Application Package, including exhibits and the supporting documents listed on the Document Checklist, to HouseKeys by the deadline stated in the Opportunity Drawing Notification.
PROGRAM APPLICATION PACKAGE COMPLETION
• Documentation needs to be dated within 30 days of submission. • Applicants/Co-applicants, and or household members who submit inaccurate information, altered documentation, or false documentation or certifications, will be disqualified.
• Once all documents are received, the Applicant will be provided with a Submission ID which will be their file in line for Processing and Underwriting
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5E. APPLICATION PROCESS (APPLICATION REVIEW AND UNDERWRITING)
APPLICATION REVIEW
• The application package will be reviewed, and if complete, will be submitted to the underwriter for review • If the application is incomplete, applicants will be given written notice to respond with any file updates or missing items • Applications that remain incomplete after notifications and applicable grace periods, will not be processed or forwarded to the Underwriter for final review
APPLICATION UNDERWRITING
• The Underwriter will complete the review and issue a Program Eligibility and Qualification Certification (AKA “Approval Letter”). • It is important to note that the Program Underwriter may request additional items from the applicant. If the applicant does not respond within the grace period, or a denial is issued, the Underwriter will move to the next Submission ID holder. • If approved, the Administrator will notify the landlord of the outcome so that the applicant can move on with the leasing documentation and lease/contract signing as described in the next section.
APPEAL
• If the applicant does not agree with the Processor or Underwriter decision, the applicant Household will have 3 business days to appeal. The applicant Household will need to submit clear and sufficient documentation, along with an appeal form that details why they feel the decision is inaccurate, within the timeframe given. • Administrator Management will review the Appeal and all documentation. • Administrator will contact the applicant regarding the status of the appeal approximately 7 business days from the date the complete Appeal Package was submitted. Administrator will notify the applicant is additional time is needed. • Administrator is unable to hold properties for households in the application or appeal process. Administrator will move on to the next Application ID holder after the initial appeal review
Application Changes: No Application changes are allowed after an application is submitted and after an application deadline has passed unless the change is (1) the removal of an applicant, (2) the additi on of an applicant’s s pouse, domestic partner or new household member in the case of an adoption or new guardianship; (3) an update of income qualification, such as a new job or a job that has ended; or (4) correction of technical errors, such as phone number or other non-qualifying information. All applications must be reviewed for income qualification within one hundred and twenty (120) days prior to the Close of Escrow of a BMR Unit.
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6. BELOW MARKET RATE OWNERSHIP PRICING AND CITY’S PURCHASE OPTION
The purpose of the Below Market Rate ( BMR) program is to provide long- term affordable homeownership opportunities for low and moderate-income households. Households that purchase a BMR home will be required to sign affordable housing documents to ensure the home remains affordable, and the homeowner occupies the home, for the entire restricted term (generally 45 years). As agreed to in the affordable housing documents, a homeowner may choose to sell the BMR home during the restricted term; however, the home will be sold at the restricted price. BMR units are priced using the formula defined in the City’s Inclusionary Ordinance :
"Affordable ownership cost" means average monthly housing costs during the first calendar year of a household's occupancy, as determined by the City, including mortgage payments, loan insurance fees, if any, property taxes, reasonable allowances for utilities and property maintenance and repairs, homeowners insurance and homeowners association dues, if any, which do not exceed the following:
1. For lower-income households: one-twelfth of thirty percent of seventy percent of area median income, adjusted for assumed household size based on presumed occupancy levels of one person in a studio apartment, two persons in a one bedroom unit, three persons in a two bedroom unit and one additional person for each additional bedroom thereafter.
2. For moderate-income households: one-twelfth of thirty-five percent of one hundred ten percent of area median income, adjusted for assumed household size based on presumed occupancy levels of one person in a studio apartment, two persons in a one bedroom unit, three persons in a two bedroom unit and one additional person for each additional bedroom thereafter.
Area median income (AMI) is the household income for the median (i.e., middle) household in a region. Each year, the Federal Department of Housing and Urban Development (HUD) calculates the median income for every metropolitan region in t he country. The United States Census Bureau uses a series of terms to determine t he definition of a household. The basic meaning of Household is an occupied housing unit. A Householder (Primary Applicant) is the person whose name the housing unit is rented to or owned by. Members of the household share familial ties, living space, expenses, debts and/or assets with the Householder.
If the owner wishes to sell during the restricted term, the City has the option to either purchase the BMR home for the restricted price or assign the BMR home to another eligible buyer for the restricted price. The City is not obligated to p urchase but the seller is obligated to give the City the option to do so. Homeowners can sell their home at a market rate price at the end of the restricted term.
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7. THE APPLICATION FILE STRUCTURE & APPLICATION CRITERIA
Program Eligibility and Qualification Criteria
The primary role of a Program Administrator is to determine the eligibility and qualification of applicant Households . A Program Processor serves the role of gathering the documents needed to evaluate the application and a Program Underwriter reviews the application to determine if it meets program requirements.
It is important to understand that there is a lot of information needed to determine whether an application meets all the program requirements. The application criteria used to determine whether an applicant Household will be approved fall into one of two categories:
• Program Eligibility Criteria: These are standards that define the characteristics of the target households who are best served by the program and help the program provider meet its intended goals. These standards often follow legal definitions and published documentation requirements. Underwriters evaluate Program Eligibility Criteria to determine if hous eholds “check eligibility boxes” that include, but are not limited to, residence address, employment address, household size requirements, total household income requirements, and whether an applicant meets the legal standard to be defined as a first-time homebuyer. Program Underwriters need to consider program eligibility for up to three years before the application date and up to a year after the estimated close of escrow date
1. • Program Qualification Criteria: Once it is determined that an applicant is eligible for the program, the Program Underwriter must also make sure that the home purchase is affordable for the applicant and that they are mortgage and hom e-purchase ready. In addition to requiring applicants to attend first-time homebuyer classes, an underwriter will evaluate the application to ensure successful and sustainable homeownership.
1 “Up to three years” speaks to the First-Time Homebuyer status that is typically verified using 3 years of tax returns. Since Total Household Income is projected forward, it’s important to understand that the Program Underwriter is considering income circumstances going forward one year.
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8. FIRST-TIME HOMEBUYER EDUCATION AND TITLE REQUIREMENTS
First-Time Homebuyer Education Workshop Requirement
All applicants who will take title to the property must attend and complete a first-time homebuyer in-person education workshop and receive a certificate of completion from a HUD and Administrator-approved First-Time Homebuyer Education Provider before going into contract on a BMR Unit. A copy of the certificate of completion is required and certificates will be accepted for up to two years after completion.
Title Requirements
All adult Household members must appear as an owner or co-owner on the BMR Unit title. They also must co-sign for any purchase loan (unless they are a non-borrowing spouse) and sign all affordable housing documents (as defined on page 2) for the BMR Unit with the following exceptions:
1. Legal dependents of titleholders as claimed on the most recent federal income tax return or legal minor children of titleholders. Spouses or Domestic Partners are not considered dependents;
2. Household members younger than age 24 who are the child of a titleholder who will reside in the BMR Unit as their primary residence, regardless of being named as a dependent on the federal tax form of a titleholder; and
3. Recent immigrants with insufficient credit history as defined as a person who has been in the United States for 2 years or less as supported by entrance documentation or a sworn statement and lender documentation of the reason for a loan denial, including a copy of applicant’s credit report.
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9. ELIGIBILITY FACTORS AND PREFERENCE CRITERIA FOR OWNERSHIP OF BMR UNITS
The City’s Inclusionary Housing Ordinance establishes a priority system for allocating the limited number of affordable rental units .
First priority (for up to ten percent of all affordable units) shall be given to income eligible employees of the City of Cam pbell. Second priority is given to income eligible existing Campbell residents and third priority is given to income eligible persons employed within the city limits of the City of Campbell. If a particular address is in question, Administrator will check with Cit y staff to determine if the property is within the City’s jurisdictional boundaries.
The preference system will be used to establish a ranking of applicants. An eligible household will be ranked according to where they live or work. While an applicant w ho lives or works within the city limits will have priority over an applicant who does not, residency/employment status is not a requirement for the Program, and all individuals and households may apply. Households comprised of applicants who do not reside or work in Campbell may occupy a BMR unit if there are no eligible Campbell residents or workers on the eligibility list for occupancy.
BMR PREFERENCE CRITERIA*
Priority 1: Work for City
(for up to 10% of units)
Must currently work for the City of Campbell government entity at least 20-hours per week, and held their position for at least 6-months Employee must have passed probation
Priority 2: Live in Campbell Must currently live in Campbell and maintained residency for at least 6-months Priority 3: Work in Campbell
Must currently work at a business located in Campbell at least 20- hours per week, and held position for at least 6- months. This category includes Campbell School District employees. The district office is located in Campbell al though the school building may be located in another city.
*Eligibility will be evaluated at the time of opportunity drawing submission and verified again prior to occupancy
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9B. OCCUPANCY STANDARDS FOR BMR UNITS
Applicant/Co-Applicants must occupy the property as their principal residence. This means that the Applicant/Co-Applicants must use the property as their primary place of residence and the property must be owner -occupied upon purchase for the life of the deed restrictions. Use of the property for additional ownership purposes, including temporary leases, sub-leasing or room rentals are not allowed under the program and will trigger immediate action.
To ensure that the City's limited BMR homes are used efficiently, a household must be of a size equal to the number of bedrooms in the BMR unit. Pursuant to fair housing laws, the maximum occupancy allowed in a BMR u nit is two people per bedroom, plus one additional person. The table below shows the minimum and maximum household size based on the number of bedrooms. In some cases, an exception to the minimum standard may be made where no other qualified buyers are remaining in the Opportunity Drawing or within 30-days from the time that the first file is requested from Opportunity Drawing entrants.
The City’s BMR Administrator will verify household occupancy once per year for the life of the restriction term (generally 45-years).
Note: Maximum Household size is subject to change per property management or Affordably Housing Agreement documents.
PROGRAM OCCUPANCY STANDARDS
Number of Bedrooms Minimum Household Size Maximum Household Size One 1 3
Two 2 5
Three 3 7
Four 4 9
Five 5 11
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9C. INCOME ELIGIBILITY CRITERIA
Income Eligibility is based on household size (number of persons in the household) and whether a household’s income is below income category limits published annually by the California Department of Housing and Community Development (HCD) on their HCD website as well as the Program Website. These resources should be used to determine the income percentage and income category that is applicable to your household.
Campbell’s housing ordinance presently defines the three income types most often used in their affordable homeownership program • “Very low-income Household” means a household whose household income does not exceed very low-income limits applicable to the County
• “Lower-Income Household” means a household whose household income does not exceed the lower income limits applicable to the County.
• “Moderate-Income Household” means a household whose household income does not exceed one hundred twenty percent of the area median income applicable to the County
It is very important for the applicant Household to know BOTH:
• Applicant Household Income as a percentage of the published County Median Income (calculated by dividing Household Income by the published Median Income Amount) applicable to your household size • Whether or not applicant Household Income is below the published income category limit applicable to your household size (e.g. Extremely Low, Very Low, Low, Median, or Moderate)
Income earned from assets, such as dividends, interest, rental income, business income, etc., is included in the household’s annual income pursuant to the Code of Federal Regulations , Title 24, Part 5 income inclusions (§ 5.609). Income calculation is also g uided by California Code of Regulations , Title 25, Chapter 6.5 Program Operations, Gross Income (§ 6914). To qualify for the City BMR Program, your household’s combined gross annual income cannot exceed the maximum income limit for your household size , as established by the HCD. All household members ages 18 or older must have their income verified. Household members that do not work or will not have any income in the next 12 months must complete a zero-income affidavit.
Note: The income categories for a particular development may vary in accordance with the Affordable Housing Agreement.
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9D. ASSET LIMITATION CRITERIA
In addition to meeting the income limit, there are restrictions on the amount of assets that a household may have to be eligible for the City BMR Program. For households applying to be an owner of a BMR unit, the limit is 50% of household AMI plus the down- payment up to 20% of the BMR price, post-closing (after the close of escrow).
Asset limit = 50% of household AMI plus the down-payment up to 20% of the BMR price
So for example, the asset limitation for a 4- person household purchasing a 3- bedroom moderate income home with a 20% down payment would be approximately $185,000 where AMI is $150,000 and the BMR price is $550,000.
ASSET LIMITATION EXAMPLE
Maximum Household Income Example Purchase Price Example Asset Limit $150,000: (50% = $75,000) $550,000: (20% = $110,000) $185,000: ($75,000 + $110,000)
There is also a minimum loan amount of 70% of the purchase price. So, for example, with a Sales Price of $550,000 the first loan amount cannot be lower than $385,000. All-cash purchase escrows will not be allowed.
The Administrator will review household income and assets for all owner -occupants, temporary occupants, and other occupants, regardless of such household member’s interest in purchasing or occupying a BMR home. To determine total household assets, HouseKeys will review the household’s total assets according to monthly financial statements and/or other valuations. A six -month average will be calcula ted just prior to Program application to determine eligibility and avoid applicant “asset dumping” (asset liquidation or transfer to other parties) . Assets held in IRS-recognized retirement accounts (401-k’s, IRA’s, etc.) are not included for the purpose of determining whether an Applicant meets the Program asset limits. However, retirement and insurance payments will be used to determine gross household income.
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9E. FIRST-TIME HOME BUYER CRITERIA
To be eligible for the City ’s BMR homeownership program, all household members on Title must be a first -time homebuyer, except as provided below. A first-time home buyer (FTHB) is an individual who has NOT had an ownership interest in a home in the three years immediately preceding their application date, except as follows:
(1) A displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve- month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family; or (2) A single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A singl e parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; or (3) An existing BMR homeowner who no longer meets the occupancy standards in these guidelines and otherwise qualifies to purchase a larger or smaller BMR home at the time of re-application.
Notwithstanding the forgoing, the following interests shall not by themselves, disqualify an applicant from falling within the definition of first time home buyer:
• Applicants who own a mobile home are not considered home owners under the BMR program and are eligible to participate.
However, if the mobile home unit is not sold and is retained by the homeowner, the property will be included in asset income calculations along with any rental income.
• Ownership in timeshares.
• Beneficiary of a trust for which the trustor/trustee is still living. • Ownership of shares in a limited equity co-op.
To verify FTHB status, HouseKeys will review 3 years of federal tax returns to confirm that the applicant has not claimed any of the tax deductions associated with homeownership (e.g. deductions of mortgage interest or property tax payments). If not legally obligated to file, the applicant must complete a Jurat explaining the reason along with supporting documents. HouseKeys will also review a credit report for mortgage loans and perform title searches to confirm the applicant is not an owner of record on any existing properties for at least 3 years. T he applicant must not be on title for any housing unit at all, whether they live in the unit or not. Other documentation may be requested to determine first time homebuyer status.
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10. APPLICATION CRITERIA – ENTERING HOUSEHOLD INFORMATION INTO THE PROGRAM APPLICATION
10A. Household Size, Location & Member Identification
The Household Location and Member Profiles capture the basic information used by the Program Underwriter to determine who is part of the household and which members will become the title-holding homeowners.
Information
Profile
Criteria Criteria Description
Location
Profile
Verification of
Residence Location
• At least one member of the applicant Household , who will be taking title to the property, must provide the following proof of residency for the 6 months preceding their entry to an Opportunity Drawing:
o One utility bill with a City address dated within 45 days preceding the application date for the BMR Unit. Utility bills can include gas, electric, garbage, or water; or:
o Current paystubs with City address; or
o A current, formal lease with a City address
Location
Profile
Verification of
Employment Location
• Administrator shall verify that a person works in the City by reviewing an applicant’s paystubs. If an applicant’s employer is not based in C ity, or if a person’s paystubs do not reflect a C ity work address, the applicant must supply a letter from the employer stating that the person works primarily in City and demonstrates that at least 75% of their working hours are in City
Member
Profile
IDENTIFICATION
• All applicants will need to provide positive identification including a copy of valid driver’s license and a copy of a valid social security card.
Member
Profile
HOUSEHOLD
SIZE
• Any household members not living in the same household at the time of application will need to be a co- applicant for the fi rst mortgage loan and on title to form a household
• Tax returns and current addresses will be used to determine household size • All applicants, co- applicants, married couples, partners, domestic partners etc. that are on title will have to occupy the proper ty for 45 years per the signed deed restrictions
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10B. Income Review Procedures
Income maximums are based on “gross” income derived from all sources as detailed in Internal Revenue Code (26 USC Section 61), whether or not exempt from federal income tax. Administrator projects future income based on the gross income on each applicant’s past income. In addition to other items deemed necessary to make this income determination, the Administrator may request up to 4 of the most recent year -to-date pay statements and the previous year’s final pay statement. Administrator must review inco me documentation for all Household members 18 years and older, regardless of dependency status. Applicants without income will need to sign a Zero-Income Affidavit provided by the Administrator. Unemployment benefits are considered income.
For employed applicants, annual income is generally derived by dividing the year-to-date gross income by the current pay period count and then by annualizing an estimated pay period amount by the total pay period count over one year (12 months). Please note that a Verbal and Written Verification of Employment may be required to be completed by the Employer issuing the pay statements.
# How Often Paid How to Determine Annual Income
1 Paid Annually Annual Gross Pay
2 Paid Monthly Use monthly gross payment x 12
3 Paid Twice Monthly Twice monthly gross pay x 2 pay periods x 12 4 Paid Biweekly Biweekly gross pay x 26 pay periods
5 Paid Weekly Weekly gross pay x 52 pay periods
6 Paid Hourly Hourly gross pay x average # of hours per week x 52 weeks 7 Government Employees with Annual Award Letters Income may be derived by referring to the Annual Award Letter
Continued Next Page
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10C. Income Inclusion and Exclusion
The Federal and State government both have rules that determine how Gross Income is calculated and what income types are included and excluded from the Gross Income total.
Application Criteria Description
• The gross amount, before any payroll deduction, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services
• The net income from the operation of a business or profession (for this purpose, expendi ture for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business). The adding back of certain deductions will be subject to underwriter approval (e.g. depreciation). • Interest, dividends and other net income of any kind from real or personal property. • Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay (except as outlined in “exclusions” section)
• Where the family has net f amily assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on a passbook savings rate, up to 10%. The current passbook savings rate used by the Administrator is 2.5% • Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling;
The following is an abbreviated list of items that are excluded from income:
• Casual, sporadic or irregular gifts
• Amounts which are specifically for or in reimbursement of the cost of medical expenses • Lump-sum additions to family assets such as inheritances, insurance payments (including payments under health and accident insurance and worker’s compensation), capital gains and settlement for personal or property losses • Foster child care payments
• The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is in excess of t he amount actually charged the eligible household
• See full inclusion list on the Program Website
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10D. Variable Income (Tips, Overtime, Bonuses, etc.)
Please Note: All Variable Income is subject to Underwriter Approval. Each circumstance is different and must be considered using the documentation in the file. The words below are meant to be used as a basic guide to help prospective applicant Household ’s understand how this income type is considered during the underwriting process.
Tips, Overtime, Bon us, and other “variable income amounts” (amounts that change with each pay period) will be annualized separately from the base income outlined on the chart above. All income will be annualized and totaled unless the applicant can provide documentation from the employer. The employer must be available to complete a verbal verification of employment with the Administrator. In cases, where the variable income item is a one -time occurrence, the amount will be removed from the annualized calculation of income and added in a one-time total to determine the annual income.
Example: An applicant earns $60,000 per year based on base monthly pay statements of $5,000 ($5,000 x 12). In addition to the base income show, the applicant received a $2,500 one-time bonus in the first quarter of the year. If annualized, the $2,500 quarterly bonus would total $10,000 and the total income would be $70,000 ($60,000 base + $10,000 annualized bonus income). If proper documentation shows that the $2,500 is a one -time payment, and Administrator is able to verify and validate this information, the $2,500 would be added to the $60,000 base. The alternative total income would be $62,500 ($60,000 base + $2,500 one-time bonus).
Seasonal Workers: Administration will not annualize current income for seasonal workers who provide a Verification of Employment from their employer (s) verifying that the work does not occur year-round
Self-Employed Income: All self-employed applicants must submit a notarized Self -Employed Affidavit provided by Administrator. If self-employed for 2 or more years, Administrator will use verifiable (verified using Form 4506-T) federal income tax returns and review the net income for as many as 3 years of tax returns to determine the projected annual in come. If self -employed less than 2 years, Administrator will review the submitted Profit & Loss Statement and use it to determine projected annual income. Additional documentation may be needed from the Self-Employed Household Member in order to determine projected annual income.
Calculating Income from Cash Income: In the case of an applicant who is paid cash for employment, Administrator will require a Verification of Employment from the applicant’s employer to confirm annual income and IRS Tax Verification Form 4506-T to confirm that no taxes were paid.
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Variable Income (Continued)
Income from Commercial Property or Land Owned: The net income from any commercial property or land owned by any applicant shall be counted toward the annual Household income.
Unemployed Applicants: Unemployed applicants who are receiving no income at all should submit a Zero -Income Affidavit as provided by Administrator in place of income statements. Applicants receiving unemployment benefits do not need to complete the Zero-Income Affidavit as unemployment benefits are considered income.
Additional Notes on Income Calculation
If applicant has recently changed positions with employer, the Administrator will determine the effect of the change on the applicant’s eligibility and opportunity to receive bonus or overtime pay in the future
If applicant who has historically been employed on a part -time basis indic ates that he or she will now be working full time (or vice versa), obtain written confirmation from borrower’s employer
A verbal verification of employment (VOE) may be required for each employer
All material alterations, and/or omissions from the initial Registration, Application ID Questions, Opportunity Drawing Entry Form, Application Submission and Supporting Documents; including but not limited to household size, income and asset information, etc., are not permissible and will render all future re-submissions ineligible for review and approval for a period of one year. Exceptions for re-submissions are signif icant life events such as a job/career change, marriage, death, or the birth of a child and are at the discretion of the Administrator.
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10E. Determining Mortgage and Home Purchase Readiness
Affordable homeownership programming requires that applicant H ouseholds who meet the basic requirements for being considered eligible, must also prove that the home purchase fits within their household budget and that they are able to successfully obtain mortgage financing. The following table summarizes the information needed by the Underwriter to approve a household:
Income
Profile &
Expense
Profile
HOUSING
PAYMENT
TO INCOME
RATIO
• To qualify, an applicant’s total housing payment, including principal & interest, taxes, insurance, and association dues cannot exceed 40% of the income for Below Market (BMR) home. For example, if your annual income is $90,000 your maximum monthly house payment cannot exceed $3,000 or $36,000 per year (40% of $90,000 = $36,000 divided by 12 = $3,000).
• Additional debts will also be taken into consideration and cannot exceed 45% of income.
• Non-borrowing applicant’s debt will be added to ratios Expense
Profile
RENT
HISTORY
• Applicants/co-applicants will need to show the last 6 months of rent history • HouseKeys will review the current rent vs. the new housing payment for affordability.
Any circumstance where the new housing payment exceeds 150% of current rent will be considered a “Payment Shock” risk. For example, if your current rent is $1,000 per month, then any housing payment exceeding $1,500 per month would be considered a potential payment shock risk ($1,000 x 150% = $1,500).
• If Payment Shock risk exists, the underwriter may make an exception if compensating factors are present in the file (e.g. post-close reserves) Asset
Profile
DOWN PAYMENT
• The minimum down payment for the BMR program is 3% of the purchase price with first mortgage loan amount equal to 97% of the purchase price. • The minimum 3% of the purchase price must come from the applicant’s own funds, and be present in the applicant’s account for at least 6 months • A gift can be used for any down payment amount more than 3% of the purchase price • Note: In some cases, mortgage financing programs may require 5% of the purchase price in order to be approved
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10F. Public Record and Default Risk
In addition to determining home purchase readiness, the Program Underwriter must also determine the risk of the property being lost to foreclosure or the risk of a lien being attached to the property that can adversely affect the resale process or excess sale proceeds. The following table summarizes the information needed by the Underwriter to reduce risk and approve a household:
Liability
Profile &
Credit
Profile
CREDIT REPORT
AND CREDIT
SCORES
• A credit report is required for all applicants and non-borrowing applicants • The credit report must include information from all three credit bureaus (Experian, TransUnion, Equifax) and use a mortgage-risk model (used by licensed mortgage lenders)
• The lowest median (middle) score is used
• The minimum credit score is 620
• An applicant or co-applicant with an unsatisfactory credit report will be denied. • We will be reviewing the Credit Report to identify all of the account balances and monthly payments
• The monthly payments on your credit report will be used to determine the total debt ratio (total debt and household payments divided by monthly income) • As stated above, the total debt ratio cannot exceed 45% of monthly income Public
Record
Profile
PUBLIC RECORD
SEARCH
(DETERMINED
USING A
STATEMENT OF
IDENTITY FORM)
• An applicant or Co -applicant may apply for consideration under the following circumstances:
• Chapter 13 bankruptcy – after 2 years from discharge or 4 years from dismissal. • Chapter 7 – after 4 years from discharge
• Short Sale/Deed in Lieu - after 4 years
• Foreclosure - after 7 years
• All applicants, co-applicants, and non-borrowing spouse cannot have liens outstanding at the time of the home purchase
• All liens, including IRS liens, or any past due money owed to the IRS, shall be required to be paid off prior to being issued a program approval.
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11. TRANSACTION AND DOCUMENT HANDLING
File Stacking (List of Documents Needed for Each Stage of the Transaction)
If application is approved, and the applicant Household is cleared to move forward with the purchase, the applicant’s lender must supply the following documentation to the Administrator (Financing File Stacking Order ):
1. Lender Checklist (listing all the loan documents)
2. Loan Application with final figures and lending terms (currently known as a 1003)
3. Uniform Underwriting and Transmittal Summary (currently known as 1008)
4. Mortgage Loan Commitment Letter
5. Loan Estimate
Routing documents to the City for signatures can take 10 to 14 business days. Before any transaction documentation can be sent to the City for signature, the following documents will need to be in the Administrator’s file ( Pre-Close Stacking Order):
1. Estimated Settlement Statement – Seller (Re-Sale and Acquisition Transactions Only)
2. Estimated Settlement Statement – Buyer
3. Estimated Settlement Statement – Master
4. Copy of 1st Lender Note & Deed of Trust
5. Copy of 1st Lender Escrow Instructions
6. 1st Lender Request for Notice of Default
7. Copy of any Subordinate Lender Notes and Deeds of Trust
8. Copy of any Subordinate Lender Escrow I nstructions
9. Subordinate Lender Request for Notice of Default
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After closing, the Title Company must provide the following to the Administrator ( Post-Close Stacking Order)
1. Executed BMR Agreements Docs, Notes and Deeds of Trust
2. Recorded Agreement
3. Recorded Request for Notice of Default
4. Final Settlement Statement – Seller (Re-Sale and Acquisition Transactions Only)
5. Final Settlement Statement – Buyer
6. Final Settlement Statement – Master
7. Alta Policy
Length of Escrow and Fall -Out Risk
The typical escrow period for a BMR Unit sale is 90 days. This period can stretch out longer if the property is under construction and there are delays. Applicant Households must be prepared for a long escrow period and to continually keep their file updated to comply with the one hundred twenty -day (120-Day) application review period. Households must be eligible and qualified through to close of escrow. Unfortunately, a change in the application file during the escrow period can cause the applicant Household to become disqualified and lose out on the purchase opportunity.
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12. REASONABLE ACCOMMODATION AND EXCEPTION REQUESTS
Accommodations in Program rules, policies, practices, or services, when such accommodations may be necessary to afford person s with disabilities, or a household with a member with disabilities, equal opportunity to apply for a BMR home. The requested accommodation must be reasonably related to the particular disability of the household member, and must be necessary in order to provide the household with equal access to housing.
Households or individual applicants unable to produce any particular document required in the application form for legitimate reasons beyond their control (natural disaster, military service, refugee status, domestic violence, witness protection program, disability etc.) may request an exception for that particular document.
Upon such request, Administrator may request a reasonably equivalent alternative document, and/or any additional supporting documentation deemed necessary by the Program Processor and Program Underwriter to verify eligibility of the Applicant/Co- Applicant and/or their entire Household.
Exceptions related to disabilities (reasonable accommodations) may be requested according to this procedure, with a brief description of the exception(s) needed due to the Applicant’s disability. The City and Administrator wil l consider the requested exception and will provide a written response within 14 calendar days, stating if the requested exception can be granted in full or part and the reason for such decision. The Administrator may approve or deny such request. If denied, Applicants may submit an appeal of such denial to the City.
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City of Campbell / HouseKeys
Below Market Rate (BMR) Program
Ownership Participation Guide
[November 2018 Draft]
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TABLE OF CONTENTS
1. Introduction Page 2
2. Online Web Portal Page 3
3. Establishing an Account Page 4
4. Household Information Profiles Page 5
5. Program Participation Page 6
6. Resale Price Determination Page 7
7. Price Determination Methods Commonly Used Page 8
8. Ownership and Estate Planning Page 10
9. Compliance and Annual Certification Page 11
10. Refinance and Subordination Requests Page 13
11. Capital Improvements and Special Assessments Page 17
12. Ownership Changes, Re-Sales, and Approved Vendors Page 19
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1. INTRODUCTION
HouseKeys is the City of Campbell’s A ffordable Housing Program Administrator. This Program Participation Guide includes the guidelines, policies, and procedures that comprise the affordable homeownership program for below market rate (BMR) homes.
Buying, owning, and selling an Affordable Below Market Rate (BMR) Ownership Unit differs in many ways from buying, owning, and selling a market rate. It is important that the buyers and sellers of BMR Ownership Units understand the rules and procedures of the Program fully.
The Program Participation Guide and other relevant information (e.g., Ordinance procedures and income limits) will be amended and updated from time to time, so long as such rules, policies and procedures do not viol ate any affordable housing laws . All proposed changes are subject to approval by the City Council prior to implementation.
Updates to this Program Participation Guide and other relevant information will be posted on the HouseKeys website
Please contact the City or HouseKeys regarding any conflicts between this Program Participation Guide, the Developer’s Affordable Housing Agreement, the owner’s BMR Agreement, and/or the City’s recorded documents.
Please contact HouseKeys with any questions or concerns regarding this docu ment or any other question regarding the City’s affordable housing program:
Online: http://www.housekeys2.com
Email: [email protected]
Phone: 1-877-460-KEYS (5397)
Address: 70 N. First Street Campbell, CA 95008
ALL GUIDELINES ARE SUBJECT TO CHANGE WITHOUT NOTICE
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2. ONLINE WEB PORTAL DASHBOARD OVERVIEW
Information Profiles Tools & Planning Program Center
Information Profiles are used to
gather important facts that
determine your eligibility and
qualification. Th ese profiles will
be used by the Program
Administrator to complete your
Program application and
determine your eligibility to
participate in Program activities.
There are many calculations
involved in an Affordable
Housing Program . From
calculating the income category
of your household, to
determining your maximum
restricted rent price and utility
allowance, it’s important to
understand the math behind
these Programs.
All Appl ication, Opportunities,
Opportunity Drawings, and
Participation Activities are
captured in your Program
Center. As soon as you
complete your initial registration,
this is where you’ll spend the
most time participating in the
Program.
Program File Cabinet Program Marketplace Community Center As you start to apply for and
participate in Program activities,
your file cabinet is where you’ll
track progress, exchange
information, and communicate
with Program administrators.
The Program marketplace is
where you can shop for
ownership, rental, and financing
opportunities.
The online community center will
have a classroom, a bulletin
board, and chatroom so you can
stay educated, informed and in
touch with other Program
participants and stakeholders.
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3. ESTABLISHING AN ACCOUNT IN THE HOUSEKEYS SYSTEM
The following four (4) actions are the initial steps needed to establish your household’s affordable housing account.
In some cases, the participant may have already established an online account. If you have not established an account, or you need to update your account, please complete the following steps.
REGISTRATION
PROCESS ACTION OR MILESTONE
1. Initial Signup
Start out by completing our simple registration form. This step collects very basic information from you to establish a User Account, including your name, contact information, and your household size and income.
2. Complete the
Registration
Wizard
The next step includes additional details about your address and household members. Completion of the Wizard will create a summary of your household and provide you with access to additional features of the Administrator Platform.
3. Request a
Participation I.D.
The Participation I.D. allows the Program Provider (City of Campbell) and the Administrator (HouseKeys) to confirm your identify and match you up with the Program File. It also will be used to track your Service Request Tickets.
4. Open a Service
Request Ticket
Whether you want to remodel your BMR home, refinance your mortgage, sell your BMR home, or ask a general question – it all starts with opening a Service Request Ticket so that the Administrator can gather the information needed to help you. The online form also creates a timestamp, so we can answer your question in the order received and in a timely manner.
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4. HOUSEHOLD INFORMATION PROFILES
When you establish an account in the MyHouseKeys system, Household Information Profiles are used to organize information about your household. This information is used to help you complete your annual certifications. While there are 10 total information profiles listed in the Program Application Guide, the list below includes the five (5) that involve your program participation and compliance.
# Information
Profile Name
Description Purpose
1 Location Profile Where you live and
where you work
Most Restriction Agreements have an owner occupancy certification to confirm that you occupy the property the minimum 10 out of 12 months per year. 2 Member Profile The people who live in
your housing unit
You will be asked to confirm that no renters are living in your household without city notice and approval
3 Expense Profile Documenting monthl y
expense obligations
Every refinance request must be reviewed by the administrator to ensure that the payment-to-income ratio of any proposed financing is in line with the program guidelines.
4 Liability Profile Your Debt Keeping your mortgage paid on time is not only good for your credit report, but it is an important part of making sure that the home is not at risk of loss due to owner default. If a homeowner falls behind on their mortgage (a default of the BMR Agreement), the City reserves the option to purchase the home at the restricted resale price (minus any money owed) to avoid foreclosure. 5 Public Record
Profile
Collections, Liens,
Bankruptcies and
Foreclosures
Bankruptcies, collections, liens, foreclosures, and divorces shall be reported directly to the City of Campbell / BMR Administrator for the entirety of the BMR term. These types of events are all part of the public record and notices are issued by the County that includes the property address . As the City and Administrator monitor these events, you may be contacted to ensure that the property is not at risk of being lost from the City’s BMR portfolio during the entire BMR term (generally 45-years). Failure of the owner to directly notify the City/Administrator of these types of events is a default of the BMR Agreement and subject to immediate action. The City reserves the option to purchase the home at the restricted resale price (minus any money owed) in the case of default.
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5. PROGRAM PARTICIPATION
The purpose of the Below Market Rate ( BMR) program is to provide long- term affordable homeownership opportunities for low and moderate-income households in the City of Campbell. Households that purchase a BMR home will be required to sign affordable housing documents to ensure the home remains affordable and the homeowner occupies the home, for the entire restricted term (generally 45 years). Homeowners can sell their home at a market rate price at the end of the restricted term (46th year). Between the time the BMR home is purchased and the 46 th year is reached, there will be a series of requests and communications between the homeowner, the City and the Administrator. For example, the homeowner may request to refinance a mortgage, remodel the home, or initiate a property resale. In addition, the City/Administrator will request compliance certifications (generally occurring annually for the entire BMR term), Failure to complete these annual compliance certifications is a default of the BMR Agreement and subject to immediate action. The rules governing these, and other issues of concern, are outlined in the “Occupancy, Resale, and Refinancing Restriction Agreement, with Option to Purchase at Restricted Price” (otherwise known as the “Agreement”), as well as the Program Guidelines.
Generally, when a request is made to review any refinance or sale request, there are three stages of review:
1. Preliminary Review of the Agreement and Program File to determine whether the participant Household is following the program rules and/or the Agreement language allows the homeowner request.
2. Evaluation of the proposed financing package or sale transaction to ensure that it fits program guidelines and complies with Agreement language.
3. Coordinating and tracking the transaction to make sure that approved vendors are used and/or that the home is sold to an eligible purchaser from the program applicant list. BMR Transactions take longer than conventional financing and sale transactions because of the number of payoffs needed, the city authorization required, and the legal documents involved.
Each review stage can take 30 to 90 days to complete, dependent upon the detail s involved with each request. It is important that any current or prospective BMR homeowner review their Agreement in its entirety to make sure that they understand the conditions and restrictions that they will be expected to adhere to during the Agreement term. BMR homeowners should seek their own legal counsel if further clarification is needed.
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6. RESALE PRICE DETERMINATION
Each resale restriction agreement has a price determination method that outlines how the resale price is calculated if the City were to exercise its option to purchase the unit, assign its option to a designee or eligible buyer, or instruct the Administrator to facilitate a resale to an eligible purchaser. The City / Administrator will use the price determination method contained in the Owner’s BMR agreement unless otherwise determined by the City. There are five primary ways that resale prices are determined:
# Price Determination Method Description
1 Indexed Price Based on
Consumer Price Index
Throughout the year, the U.S. Department of Labor’s Bureau of Labor Statistics publishes a Consumer Price Index for metropolitan areas throughout the United States. This determination method allows for a resale price that is based on the increase in the Housing Component of the Consumer Price Index based on the month and year of purchase. 2 Indexed Price Based on Area
Median Income
Each year, the State of California Department of Housing and Community Development publishes the statewide income limits. This determination method allows for a resale price that is based on an increase in the applicable Median Income based on the y ear of purchase and the year of resale.
3 Equity Share Agreement Some Agreements have an Equity Share Provision that is based on the initial subsidy provided by the City when the BMR Unit was purchased.
4. Shared Appreciation Some agreements require a percentage of the Fair Market Value to be paid to the City as a Shared Appreciation Payment. The remaining appreciation share amount is paid to the Owner.
5. Promissory Note for First Time
Homebuyer Loan or other
Mortgage Assistance Loan
Some Agreements include a loan. Depending on the terms of the promissory note, the principal and interest will be due in full when the home is resold or when the or within a specified term (e.g., 45 years). In other cases, payments may be required more frequently.
6. Promissory Note for
Forgivable Loan
Some agreements include a forgivable loan. Depending on the terms of the promissory note, the loan may be forgiven in full if the approved BMR homeowner remains in the home for the entire BMR term (generally 45 years). If the home is sold before the end of the BMR term, the principal and interest are due in full; however in some cases, the amount due will be reduced by a certain percentage each year until there is no balance remaining.
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7. PRICE DETERMINATION METHODS COMMONLY USED IN CITY OF CAMPBELL AGREEMENTS
Sale Proceeds Due to Owner Vs. Proceeds Due t o City: Depending on the Price Determination Method used, the Fair Market Value of the home, and any liens and/or encumbrances recorded (including any interest or fees owed at time of sale), there wi ll be a portion of the sale proceeds that are due to the Owner and a portion of the sale proceeds that are due to the City. The City’s portion is considered Program Equity or Public Equity.
All BMR Homeowners must be in good standing with the program at the point that they would like to sell their home or refinance their home. If there are outstanding compliance findings, the City reserves the right to reject a request to sell or refinance.
Indexed Price Based on Area Median Income (Inclusionary Housing Units)
Each year, the State of California Department of Housing and Community Development publishes the statewide income limits . This determination method allows for a resale price that is based on an increase in the applicable Median Income based on the year of purchase. The table below includes an example of how the City / Administrator determines the BMR resale price:
Example of Indexed Price Determination Information
Date of Resale August 1, 2018
Date of Purchase March 1, 2005
Original Purchase Price $300,000
Santa Clara County Median Income for Household of 4 at Time of Purchase $105,500 Santa Clara County Median Income for Household of 4 at Tie of Resale $125,200 Dollar Amount Change in Applicable Median Income $19,700 Percentage Change in Applicable Median Income 18.673%
Purchase Price Multiplier (Percentage Change + 1) 1.18673 Gross Maximum Restricted Resale Price Based on Applicable Median Income Change (Original Purchase price multiplied by the Purchase Price Multiplier) $356,019
(300,000 x 1.18673)
Capital Improvement Credit (if Applicable) (All improvements must be pre-approved to obtain credit) $25,000 Deferred Maintenance Deduction Charged to Homeowner (if Applicable) ($5,000) Net Preliminary Maximum Restricted Resale Price $376,019
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7. PRICE DETERMINATION METHODS (continued)
Equity Share Agreement (Density Bonus Units)
Under Campbell’s equity sharing model (if applicable), the owner can sell the home immediately and capture a portion of the equity gained on the property after deducting the City share and the affordable subsidy (the difference between the affordable price and the market price). The City w ill acquire the subsidized difference as well as a share of the appreciation equal to the ratio of the city’s initial subsidy to the fair market value of the home at the time of initial sale.
The Equity Share Percentage (%) is determined by dividing the Subsidy Amount by the Original Market Value. The example below shows two sales scenarios where the unit was purchased for $475,000 with an Original Market Value of $800,000
Example of Equity Share Determination Resale Scenario 1 Resale Scenario 2 Sales Price at Time of Resale $800,000 $1,000,000
Original Market Value at Time of Purchase $800,000 $800,000 Appreciation $0 $200,000
BMR Price $475,000 $475,000
Subsidy Amount (Original Market Value minus BMR Price) $325,000 $325,000 City’s Equity Share Percentage
Subsidy amount divided by Original Market Rate Value
40.625%
325,000/800,000
40.625%
Amount Paid to the City based on Subsidy Percentage $0 $81,250 Total Gross Excess Sales Paid to the City
(initial subsidy plus equity share)
$325,000
($325,000 + 0)
$406,250
($325,000 + 81,250)
Total Gross Excess Sales Paid to the Owner
(this amount does not include the homeowner’s paid principal amount) $0 $108,000
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8. OWNERSHIP AND ESTATE PLANNING
A “Transfer” means any sale, assignment or transfer, voluntary or involuntary, of any interest in the Home, including, but not limited to, a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest (unless the lease is approved in advance by the City), or land contract.
Transfers by devise or inheritance to an existing spouse, Domestic Partner, child, surviving joint tenant, or a spouse as part of a dissolution proceeding in connection with marriage – are not considered Transfer s. All Transfers must be approved by the City in advance and may be subject to the City’s Option to Purchase (See Section 5 to see description of “City’s Option to Purchase”).
Payable-on-Death (POD) Accounts and Transfer -on-Death (TOD) Deeds are two methodologies that will be considered for BMR Owners to designate beneficiaries and avoid having a BMR Unit become part of a probate case.
In the event a Transfer occurs, or a person receives the Home by devise, inheritance, or operation of law due to dea th of the Owner, the person inheriting the Home (the “Inheriting Owner”) must have their income and eligibility reviewed and approved by the C ity or Administrator to determine if they are an Eligible Purchaser. If approved, new documents will need to be s igned and a new BMR term (generally 45-years) will be enforced.
New purchasers of BMR Units may not purchase the BMR Unit through a trust of any kind, including but not limited to living tr usts.
Existing BMR Owners may not transfer ownership of their BMR Units to trusts of any kind, including living trusts.
Owners of BMR Units should keep in mind that the Estate of the Owner is entitled to the Owner due proceeds upon any transfer that takes place during the Agreement term.
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9. COMPLIANCE, ANNUAL CERTIFICATION, & ENFORCEMENT
All BMR homeowners will be re-certified once a year for compliance with their signed and recorded deed restrictions on the property, including but not limited to occupancy, current title, and liens. Homeowners shall provide the program Administrator with all pertaining documents listed on the program checklist (provided annually), in order to complete the full re -certification review and receive a certificate of compliance.
ANNUAL COMPLIANCE CERTIFICATION
1. The Owner will receive an annual notification via US mail for the annual certification process. This notification will include a questionnaire and request for supporting documents ( e.g., most current utility bill, mortgage statement, and insurance declaration page). The owner will have 30 days to comply.
2. If an owner does not comply with the requirements or documentation within 30 days of the annual certification notice being sent, a 2nd notice will be sent providing a final deadline.
3. If the homeowner does not comply after the 2 nd notice, the City will take enforcement actions, as described on the following page.
CERTIFICATION PROCESS
Once all documents are received, the City or Administrator will:
1. Ensure that there are no inconsistencies with the application file (e.g. , misinformation or fraud committed during the application process);
2. Determine if the property is owner occupied and confirm that the BMR home is not being rented;
3. Review all liens against the property to ensure the property is not over encumbered;
4. Review all transfers of title on the property reports;
5. Review default notices or statements of any loans, taxes, or Homeowner Association dues; and
6. Determine if the property is adequately insured and if secondary liens (i.e. down payment assistance loans, city loans or state loans) are referenced on the Insurance Declaration page.
If any of the above review steps require additional information from the Owner, a document request will be made and the Owner will be provided with a deadline to return the requested documents to the Administrator.
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9. COMPLIANCE, ANNUAL CERTIFICATION, & ENFORCEMENT (Continued)
CERTIFICATION OF COMPLIANCE
The BMR Owner will receive a certificate of compliance if the review is approved and in compliance with the requirements above.
ENFORCEMENT ACTIONS AND TIMELINES
If the homeowner does not comply after the 2 nd notice, the City or Administrator will file a Notice of Default with the County Recorder’s Office and the homeowner will be notified. This Notice of Default becomes public record and may trigger additional action by any lenders who have an interest in the property.
If the homeowner is out of compliance on any of the above requirements, the homeowner will be provided with 60 days to comply and will be provided with action steps needed to cure any defaults (if there are possible actions to cure the default).
90 Days from the date that the Notice of Default is fil ed with the County Recorder’s Office, the City or Administrator will file a complaint with a court of competent jurisdiction. The City or Administrator will negotiate during mediation hearings in good faith prior to a trial date, but if an agreement is not reached, the case will be followed through to conclusion.
If the owner fails to cure the violation, the City will exercise its Option to Purchase the BMR home from the homeowner at a restricted resale price, described earlier in this Guide.
The City/Administrator reserves the option to apply to a court of competent jurisdiction if it deems legal action appropriate
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10. REFINANCE & SUBORDINATIONS REQUESTS
The information below and on the following page outlines the process for refinancing existing City loans, or subordination of any loan or deed of trust associated with a BMR property. Subordination of loans not issued by the City is necessary to protect the City’s interest in maintaining the affordability of the property for the duration of the restriction term (typically 45 years). In m ost cases, the City’s interest will be subordinate to any mortgage loans on the home , as outlined in the deed of trust and/or the signed resale restriction documents.
SUBORDINATION REQUIREMENTS
BMR homebuyers may be allowed to refinance up to 90% of the Maximum Restricted Sale Price described in the si gned deed restriction, or the remaining balance of the loan amount, whichever is less. The total payoff amounts for all recorded liens and encumbrance amounts are used to determine the 90% maximum refinance percentage. This percentage is sometimes called the Maximum Combined Loan to Value (Max CLTV). Please note the following requirements:
1. Accrued interest on any subordinate financing will be considered in the Max CLTV.
2. HouseKeys will calculate the maximum restricted sale price according to the deed restrictions.
3. The refinance amount cannot exceed 90% of the maximum restricted sale price.
4. If the remaining balance of the original first loan is more than 90% of the restricted price, the original loan shall be paid down.
5. No cash out is allowed if there are any City loans.
6. Payoff of purchase money mortgages are not considered cash out.
7. Payoff of equity lines or junior financing that are not purchase money loans are considered cash out.
8. Homeowners cannot add or change names to title without approval of the City/Administrator.
9. Any request to change names on title shall be submitted to the City with supporting documents.
10. If the requested change is due to marriage, the person being added will need to be on the first mortgage
11. Addendums to the BMR agreement will need to be signed by any person added to the title or associated loan.
12. If the requested change is due to divorce, addendums to the subordinate financing and BMR agreement shall be signed.
13. A Performance Deed of Trust is required to protect the BMR deed restrictions and will be recorded against the property.
Continued next page
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10. REFINANCE & SUBORDINATIONS REQUESTS (Continued)
MORTGAGE REQUIREMENTS
1. First mortgage loan terms of 30, 20, or 15-year fixed rate fully amortized
2. Equity lines, lines of credit (HELOCs), etc. or any junior loans are not allowed
3. Adjustable rate, interest only, negative amortization, or balloon payments loans are not allowed
4. Homeowner is required to use a loan officer on the City’s BMR program approved lender list
5. Rate and term refinance up to $1,500 maximum cash out
6. Recurring closing cost will not be allowed to be financed
7. Non-recurring closing cost will be allowed to be financed as long as the new loan amount does not exceed 90% of the restricted value
8. Escrow will be required to be opened with a Title company in Santa Clara County
Please Note: FHA/VA loans do not typically work with resale restricted properties due to federal requirements and/or lender requirements. Please check with your lender to ensure that they have r eviewed the restrictions and whether the legal department has accepted the use of Government National Mortgage Association (“Ginnie Mae”) financing with your resale restricted property.
REQUEST TO REFINANCE PROCESS
1. Complete the BMR Homeowners Inquiry Form on the Campbell Program website
2. HouseKeys will calculate the maximum restricted sale price within 14 days of receiving a complete application. However, if more information is needed, the process will be delayed until HouseKeys receives the requested information. Once all of the information is received and a price has been issued, it is valid for 6 months.
3. Homeowners shall then complete the refinance request forms and provide all of the supporting documentation to HouseKeys
4. HouseKeys will review the fully -packaged refinance request file and issue a final approval or denial of the request within 14 days of receipt of all required documents.
Continued next page
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10. REFINANCE & SUBORDINATIONS REQUESTS (Continued)
MINIMUM REQUIRED DOCUMENTS FROM THE HOMEOWNER FOR REFINANCE / SUBORDINATION REQUESTS
OWNER DOCUMENTS
1. Signed BMR refinance application
2. Current mortgage statements with all balances
3. Current Federal Tax returns
4. 2 months consecutive paystubs
5. 2 months current bank statements
6. Copy of Driver’s License and Social Security Card
7. Subordination fee
LENDER DOCUMENTS
1. Borrower’s authorization
2. Credit report
3. 1008 (transmittal)
4. 1003 (application)
5. DU (desktop underwriting)
6. Preliminary Report
7. Appraisal
8. Approval letter
ESCROW COMPANY DOCUMENTS
1. Estimated Closing statement
2. Payoff demand letter
REFINANCE REQUEST APPROVAL
Once all documents are received, HouseKeys will:
1. Determine if the refinance follows the deed restrictions and does not exceed the maximum restricted price
2. Determine if the borrower is in a better financial situation with the new refinance terms.
3. Determine whether all requirements have been met.
4. Review any additional liens on the property.
5. Determine whether all existing loans, HOA dues and taxes are current. If not current, the application will be rejected.
6. Once approved, subordination documents and escrow instructions will be drawn and routed to the City for signatures.
Please note that City signatures can take up to 14 business days to obtain. It is highly suggested that you do not lock any interest rates on your proposed financing until you obtain city signatures.
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11. CAPITAL IMPROVEMENTS AND SPECIAL ASSESSMENTS
Homeowners must receive approval from the City / Administrator prior to making any capi tal improvements to a BMR home. BMR homeowners may begin claiming capital improvements toward their Maximum Resale Price, no sooner than 1 year after the BMR Unit was first occupied. Exceptions may be made for critical modifications (e.g., accessibility improvements) during the first year, if pre-approved by the City . Following City / Administrator approval for capital improvements, BMR Owners m ay begin submitting documentation of completed work for future credit. The City or Administrator will review all capital improvement claims and categorize them into three distinct categories:
Eligible Capital Improvements: Major structural system upgrades, new additions to the BMR Unit and improvements related to increasing the health, safety and energy efficiency of the property. The Improvements must conform with applicable building codes, and be pre- approved by the City in writing. To receive future credit, the initial cost must exceed one percent (1%) of the purchase price paid by the Owner. Improvements that meet these criteria will be given a maximum 100% credit, as determined by the City / Administrator.
Eligible Replacement and Repair: Eligible Replacement and Repair includes in-kind replacement of existing amenities, repairs and general maintenance that keeps the property in good working condition. Costs that meet these criteria will be given a maximum 50% credit for repairs, as determined by the City / Administrator.
Ineligible Costs: Cosmetic enhancements, installations with limited useful life spans and non- permanent fixtures. Homeowners may undertake these projects at their discretion, however they will not be given capital improvements credit.
Procedure for Submitting Capital Improvements : BMR Owners must submit proof of capital improvements to the City / Administrator for review within 6-months of the completion of the project. In order to document the i mprovements, each BMR Owner must submit the followi ng documentation: (1) A list of the capital improvements with a description on a form provided by Administrator: (2) The receipt and invoice for each eligible improvement; (3) Proof of payment, such as a c ancelled check, bank account statement or credit card bill; (4) A copy of site or building permits, if required; and (5) Contractor’s license number for Projects exceeding $500. Upon receipt of a complete capital improvements claim, the Administrator staff may arrange a site visit to inspect the completed Project.
Once the improvements have been verified, the Administrator will send a written response to approve or deny the capital improvements within 60 days of original receipt. This information will be placed in the property file for use when the property is sold.
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11. CAPITAL IMPROVEMENTS AND SPECIAL ASSESSMENTS (Continued)
Special Assessments
Homeowner’s Association (HOA) initiated special assessments are considered capital improvements and will be added to the resale price of the home at the full amount of the special assessment paid by the BMR Owner. In order to receive credit for special assessments, homeowners must submit the following documentation within 6- months of payment: (1) An invoice for the special assessment; (2) Proof of payment, such as a cancelled check, bank account statement or credit card bill; and 3) documentation from the HOA.
Capital Improvements Cap
At the time of sale, the City will cap all eligible capital improvements at 10% of the resale price. This is to preserve the affordability of the BMR unit.
Maintenance and Insurance Requirements
The Owner shall maintain the Home, including landscaping, in good repair and in a neat, clean and orderly condition and will not permit deterioration of the Home.
The Owner shall maintain a standard all risk property insurance policy equal to the replacement value of the Home , naming the City as an additional insured. The insurance amount shall be adjusted every five years by appraisal, if requested by the City. Additional insurance requirements are set forth in the City Deed of Trust.
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12. OWNERSHIP CHANGES, RE-SALES, AND APPROVED VENDORS
The information below, and on the following page, outlines the process for transferring or changing ownership of the BMR home.
OWNERSHIP CHANGES
• Homeowners must review their BMR deed restrictions in order to determine it title can be transferred. • Outside of divorce, marriage or name change, the new owner must be eligible and qualified for the BMR program, as determined by the City / Administrator.
• Written approval from the City/Administrator is required. • Changes are not permitted if the homeowner has violated any of their Deed Restrictions. • Any request to remove, add, or otherwise change ownership of the BMR home shall be accompanied by the following documents:
• Divorce: Copy of court order
• Name change: Copy of legal documents
• Marriage: Copy of Marriage Certificate
• New ownership: All required documents per the City / Administrator • Trusts are not allowed.
• Inheritance is not permitted, unless otherwise allowed per the deed restrictions
RE-SALES
• The homeowner shall complete a ticket (request) on the HouseKeys website to begin the process for potential resale. • The homeowner shall provide all requested documents to the Administrator in order to begin processing the resale request.
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12. OWNERSHIP CHANGES, RE-SALES, AND APPROVED VENDORS (Continued)
• Once all required documents have been received, the Administrator will:
• Review the deed restrictions along with any liens recorded on the property. • Assignment of Option is required if owners wants to continue with sale • Complete an initial walk-through of the property, to determine the amount of work needed to sell the BMR home. • Schedule inspections of the property (contractors, appraiser, vendors, etc.) • Obtain a preliminary quote from vendors.
• Review quotes and schedule a walk-through of the property with the City. • Adjust contractor/vendor bids, if needed, and obtain a final quote for property improvements. • Obtain approval of the quote from the City.
• Calculate the Maximum Restricted Sale Price per the deed restrictions, accounting for all required and approved improvements to the property.
• Create the listing agreement or purchase agreement if needed. • Prepare the property for resale through the Lottery/Opportunity Drawing process. • All real estate/transaction fees are the responsibility of the seller. • The owner shall sign the Property Pricing form and Opportunity documents.
APPROVED VENDORS
All vendors shall be approved by the Administrator. The table below outlines the minimum requirements for any vendor associated with resale of the property:
CONTRACTORS • Contractors shall have a valid California Contractor License.
LENDER/LOAN
OFFICERS
• Loan Officers shall have previously attended HouseKeys loan officer orientation class. • The lender’s legal department shall approve all BMR documents prior to resale.
TITLE COMPANY • The Title Company shall be based in the County of Santa Clara.
APPRAISER • Appraisers shall have a valid California State Certification or California State License that has not expired.
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Below Market Rate (BMR) Homebuyers
Eligibility Guide
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INTRODUCTION
On October 3, 2006, the City Council adopted Campbell’s Inclusionary Housing Ordinance ( Chapter 21.24), finding that the lack of affordable housing in Campbell forces many residents to pay a very high percentage of their income for housing. Through the inclusionary ordinance, at least 15% of the units in a new housing development of ten or more units will be price or rent restricted for low - and moderate- income households. Implementation of the inclusionary ordinance is a necessary part of the City's efforts to meet its General Plan Housing Element goals and objectives and its region wide affordable housing obligations.
On June 7, 2016, the City Council selected HouseKeys to administer the City’s affordable housing programs. In addition to general administration of these programs, HouseKeys determines the eligibility of individuals and households interested in owning a Below Market Rate (BMR) home in the City of Campbell.
This Eligibility Guide
1 answers basic questions regarding eligibility for the City of Campbell’s limited number of affordable ownership units, including Campbell’s preference criteria (page 2) , occupancy standards (page 3), first-time homebuyer standards (page 4), asset limits (page 5), and income limits (page 6).
For more information on the City’s Below Market Rate Program:
Online: http://www.housekeys2.com
Email: [email protected]
Phone: 1-877-460-KEYS (5397)
Address: 70 N. First Street Campbell, CA 95008
The City of Campbell reserves the right to change information contained in this Eligibility Guide and used for program implementation without prior notice or obligation.
1 A more comprehensive set of BMR Guidelines is being drafted and will be available at a later date.
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PREFERENCE CRITERIA FOR RENTAL OR PURCHASE OF BMR UNITS
When the City adopted its Inclusionary Housing Ordinance in 2006, the City Council established a preference for allocating the limited number of affordable rental and ownership units. First priority (for up to ten percent of all affordable units) shall be given to income eligible employees of the City of Campbell . S econd priority is given to income eligible existing Campbell residents and third priority is given to income eligible persons employed within the city limits of the City of Campbell. If a particular address is in question, HouseKeys will check with City st aff to determine if the property is within the City’s jurisdictional boundaries.
The preference system will be used to establish a ranking of applicants. An eligible household will be ranked according to where they live or work. While an applicant who lives or works within the city limits will have priority over an applicant who does not, residency/employment status is not a requirement for the program , and all individuals and households may apply. Households comprised of applicants who do not reside or work in Campbell may occupy a BMR unit if there are no eligible Campbell residents or workers on the eligibility list for occupancy.
BMR PREFERENCE CRITERIA
Priority 1: Work for City
(for up to 10% of BMR units)
Must work for the City of Campbell government entity
at least 20-hours per week for at least 6-months*
Employee must have passed probation
Priority 2: Live in Campbell Must have lived in Campbell for at least 6-months* Priority 3: Work in Campbell
Must work at a business located in Campbell
at least 20-hours per week for at least 6-months*
*This category includes employees of the Campbell School District even though their physical office or school building may be located in San Jose *Eligibility will be evaluated at the time of lottery submission and verified again prior to occupancy
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OCCUPANCY STANDARDS FOR BMR UNITS
Applicant/Co-Applicants must occupy the property as their principal residence. This means that the Applicant/C o- Applicants must use the property as their primary place of residence and the property must be owner -occupied upon purchase and for the life of the deed restrictions. Use of the property for rental purposes, including temporary leases or room rentals are not allowed under the program and will trigger immediate action.
To ensure that the City's limited BMR units are used efficiently, a household must be of a size equal to the number of bedrooms in the BMR unit. Pursuant to fair housing laws, t he maximum occupancy allowed in a BMR home is two people per bedroom, plus one additional person. Thus, to be eligible to purchase a three-bedroom unit, a household must contain at least three members, but no more than seven members. In some cases, an exception to the minimum standard may be made where no other qualified buyer/renter can be approved within 30-days of holding the lottery.
The City’s BMR Administrator will verify household occupancy once per year for the life of the 45- year BMR Agreement between the City and the homeowner(s).
BMR OCCUPANCY STANDARDS
Number of Bedrooms Minimum Household Size Maximum Household Size One 1 3
Two 2 5
Three 3 7
Four 4 9
Five 5 11
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Below Market Rate (BMR) Homebuyers
FIRST-TIME HOME BUYER REQUIREMENT
To be eligible for the City of Campbell’s BMR homeownership program, all household members on Title must be a first - time homebuyer , except as provided below . A First-Time Home Buyer (FTHB) is an individual who has NOT had an ownership interest in a home in the three years immediately preceding their application date, except as follows:
(1) A displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve- month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family; or
(2) A single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A singl e parent is an individual who is unmarried or legally separated from a spouse and has one or more minor chil dren for whom the individual has custody or joint custody or is pregnant; or
(3) An existing Campbell BMR homeowner who no longer meets the occupancy standards in these guidelines and otherwise qualifies to purchase a larger or smaller BMR home at the time of re-application.
Notwithstanding the forgoing, the following interests shall not by themselves, disqualify an applicant from falling within the definition of first time home buyer:
• Applicants who own a mobile home are not considered home owners under the BMR program and are eligible to participate.
However if the unit is not sold the property will be asset income along with any rental income. • Ownership in timeshares.
• Beneficiary of a trust for which the trustor is still living • Ownership of shares in a limited equity co-op
To verify FTHB status, HouseKeys will review 3 years of federal tax returns to confirm that the applicant has not claimed any of the tax deductions associated with homeownership (e.g. deductions of mortgage interest or property tax payments). If not legally obligated to file, the applicant must complete a Jurat explaining the reason along with supporting documents. HouseKeys will also review a credit report for mortgage loans and perform title searches to confirm the applicant is not an owner of record on any existing properties for at least 3 years. T he applicant must not be on title for any housing unit at all, whether they live in the unit or not. Other documentation may be requested to determine first time homebuyer status.
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Attachment: Interim Guidelines (2-2017) (1297 : BMR Guidelines (Resolution/Roll Call Vote))
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Attachment: BMR Guidelines; established by CC Res. 12375 (Housing Program Update and HouseKeys City of Campbell Eligibility Guide
Below Market Rate (BMR) Homebuyers
ASSET LIMITATION
In addition to meeting the income limits, t here are restrictions on the amount of assets that a household may have to be eligible for the City of Campbell ’s BMR Program. For households applying to be an owner of a BMR unit, the limit is 50% of household AMI plus the down-payment up to 20% of the BMR price. So for example, the asset limitation for a 4- person household purchasing a 3-bedroom moderate income home with a 20% down payment would be approximat ely $147,950 where AMI is $107,100 and the example BMR price is $472,000
2. Asset limit = 50% of household AMI plus the down-payment up to 20% of the BMR price
The City will review household i ncome and assets for all owner-occupants, temporary occupants, and other occupants, regardless of such household member’s interest in purchasing or occupying a BMR home. To determine total household assets, HouseKeys will review the household’s total assets according to monthly st atements and/or other valuations. A six-month average will be used to avoid applicant “asset dumping” (asset liquidation or transfer to other parties) just prior to Program application in order to meet the asset limits. A ssets held in IRS -recognized retirement accounts (401- k’s, IRA’s, etc.) are not included for the purpose of determining whether an Applicant meets the Program asset limits.
However, retirement and insurance payments will be used to determine gross household income.
2 20% of 472,000 = $94,400; 50% of $107,100 = $53,550; $94,400 + $53,550 = $147,950.
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Attachment: Interim Guidelines (2-2017) (1297 : BMR Guidelines (Resolution/Roll Call Vote))
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Attachment: BMR Guidelines; established by CC Res. 12375 (Housing Program Update and HouseKeys City of Campbell Eligibility Guide
Below Market Rate (BMR) Homebuyers
HOUSEHOLD SIZE AND INCOME
Eligibility income limits are based on household size and a percentage of the Santa Clara C ounty Area Median Income (AMI) published by the D epartment of Housing and Community Development. AMI means that fifty percent of all household incomes in the county are more than 100% AMI and fifty percent of the household incomes are less than 100% AMI. In Campbell, the moderate income limit is 120% of AMI, while the low income limit is 8 0% of AMI . Use the table below to determine which income level your household falls under. All household members ages 18 or older must have their inco me verified. Household members that do not work or will not have any income in the next 12 months must complete a zero-income affidavit.
CALIFORNIA DEPT. OF HOUSING & COMMUNITY DEVELOPMENT
2016 SANTA CLARA COUNTY SINGLE FAMILY INCOME LIMITS (as of MAY 24, 2016) Number of Persons in Household
Income Category 1 2 3 4 5 6 7 8
Moderate Income
120% AMI $89,950 $102,800 $115,650 $128,500 $138,800 $149,050 $159,350 $169,600 Median Income
100% AMI $74,950 $85,700 $96,400 $107,100 $115,650 $124,250 $132,800 $141,350 Low Income
80% AMI $59,400 $67,900 $76,400 $84,900 $91,650 $98,450 $105,250 $112,050
Income earned (or imputed) from assets, such as dividends, interest, rental income, business income, etc., is included in the household’s annual income pursuant to the Code of Federal Regulations, Title 12, Part 5 income inclusions (§ 5.609).
Please also see Section 4 of this document regarding asset limitations.
Note: Income is looked at differently to qualify for a mortgage. It’s possible to be income eligible for the program, but not a loan, and vice-versa.
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Attachment: Interim Guidelines (2-2017) (1297 : BMR Guidelines (Resolution/Roll Call Vote))
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Attachment: BMR Guidelines; established by CC Res. 12375 (Housing Program Update and HouseKeys
City
Council
Report
TITLE: Council Committee Reports
RECOMMENDED ACTION
That the City Council report on activities from their committee assignments.
DISCUSSION
This is the s ection of the City Council Agenda that allows the City Councilmembers to report on items of interest and the work of City Council Subcommittees.
MAYOR BYBEE
Cities Association of Santa Clara County:
Board Representative
Legislative Action Committee and City Selection Committee City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Finance Subcommittee
Friends of the Heritage Theater Liaison
Legislative Subcommittee
Silicon Valley Animal Control Authority Board (SVACA)
West Valley Mayors and Managers
VICE MAYOR LANDRY
Advisory Commissioner Appointment Interview Subcommittee City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Education Subcommittee
Economic Development Subcommittee
Santa Clara Valley Water District County Water Commission Santa Clara County Library District JPA Board of Directors
West Valley Clean Water JPA (Alt.)
West Valley Solid Waste Authority JPA (Alt.)
West Valley Mayors and Managers (Alt.)
Item: 13
Category: COUNCIL COMMITTEE
REPORTS
Meeting Date: June 20, 2023
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Council Committee Reports Page 2 of 3
COUNCILMEMBER FURTADO
Advisory Commissioner Appointment Interview Committee
DCBA Liaison
Santa Clara County Emergency Operational Council (EOAC)** Silicon Valley Regional Interoperability Authority (SVRIA) West Valley Clean Water JPA
West Valley Sanitation District
West Valley Solid Waste Authority JPA
Association of Bay Area Governments (Alt.)
Silicon Valley Animal Control Authority Board (SVACA) (Alt.) Valley Transportation Authority Policy Advisory Committee (Alt.)
COUNCILMEMBER LOPEZ:
Association of Bay Area Governments
Bay Area Quality Management District Board of Directors** Economic Development Subcommittee
Finance Subcommittee
League of Cities Peninsula Division Executive Committee** Legislative Subcommittee
Santa Clara County Housing and Community Development Advisory Committee Silicon Valley Clean Energy Finance and Audit Committee Valley Transportation Authority Board of Directors**
Campbell Historical Museum & Ainsley House Foundation Liaison (Alt.) Cities Association of Santa Clara County:
Board Representative (Alt.)
Legislative Action Committee and City Selection Committee (Alt.) Friends of the Heritage Theater Liaison (Alt.)
Santa Clara Valley Water District: County Water Commission (Alt.) Silicon Valley Clean Energy JPA Board of Directors (Alt.) West Valley Sanitation District (Alt.)
COUNCILMEMBER SCOZZOLA
Campbell Historical Museum & Ainsley House Foundation Liaison Education Subcommittee
Silicon Valley Clean Energy JPA Board of Directors
Valley Transportation Authority Policy Advisory Board
DCBA Liaison (Alt.)
Santa Clara County Housing and Community Development Advisory Committee (Alt.) Santa Clara County Library District JPA Board of Directors (Alt.)
**appointed by other agencies
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Council Committee Reports Page 3 of 3
Prepared by:
Andrea Sanders, City Clerk
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