Sites with Affordable Ownership opportunities (depending on availability):

Transcription

1 CITY OF MONTEREY AFFORDABLE OWNERSHIP - PURCHASE AND RESALE PROGRAM APPLICATION For Affordable Low, Moderate and Workforce Level Households The City of Monterey is dedicated to providing low, moderate and workforce housing to households who otherwise would not be able to afford a home in Monterey. Please take the time to read through the application and all the attachments. Make sure you read through the waiting list process, and take note where you fall on the Household Income chart, based on your entire household s yearly gross income. Incomplete applications will not be accepted. An incomplete application will be returned to the applicant. Applications are only accepted into the Purchase & Resale program when all the information requested is submitted, and applicants MUST LIVE OR WORK in the City of Monterey to become eligible. Applicant Name Co-Applicant Name Social Security No. Social Security No. Address (not P.O. Box) Address (not P.O. Box) City, State & Zip Code City, State & Zip Code Phone Number(s) Phone Number(s) Name of Employer, City of Employment Name of Employer, City of Employment Total Number of Persons in Household Sites with Affordable Ownership opportunities (depending on availability): Cypress Park Homes / 820 Casanova Ave. Yerba Buena Court Footprints on the Bay / 300 Glenwood Ave. Villa Rose 435 Dela Vina Laguna Grande Court Townhomes Laine Hill Condos 585 Laine Vista del Mar / 116 Mar Vista Dr. 565 English Avenue Townhomes Note: THIS HOME YOU ARE APPLYING FOR PURCHASE MUST BE YOUR PRIMARY RESIDENCE ALWAYS You must qualify based on your household size, income, residency and/or employment in Monterey. Please provide us with the following information on your income, and the Asset Worksheet with necessary documentation attached. Please attach the Certification that you are a First Time Homebuyer, and complete the section entitled Demographic Data for our files: Gross Annual Income of EVERY Household Member over 18 years of age 2014 $ 2015 $ Projected Gross Income 2016 $ Amount available for down payment: $ SUBMIT THE FOLLOWING WITH THIS APPLICATION: SIGNED COPIES of the following for all applicants and co-applicants to verify eligibility for the affordable housing program: Federal income tax returns and all attachments including W-2s for the last 3 years for each member of your household over 18 years of age. One Pay stub: from current month with year-to-date cumulative total income. Proof of current residency: utility bill / letter from landlord certifying residence or letter from employer in the City of Monterey. I/We declare under penalty of perjury and the laws of the State of California that the above information provided is true and correct. Applicant s Signature Date Co-Applicant s Signature Date NOTE: YOU ARE RESPONSIBLE FOR INFORMING US OF ANY CHANGES OF ADDRESS IN WRITING.

2 IF WE ARE UNABLE TO REACH YOU, YOU RISK BEING ELIMINATED FROM THE WAITING LIST. ASSET WORKSHEET To be filled out by Applicant & Co-Applicant BE SURE TO IDENTIFY AND ATTACH COPIES OF RECENT STATEMENTS FOR ALL ASSETS 1. Cash $ 2. Savings $ 3. Stocks, Bonds, Other Securities $ 4. Real Property (equity) $ 5. Other (specify) $ TOTAL CONVERTIBLE ASSETS - - (Add Lines 1-5 above) $ Total Household Assets : $ (NOTE: For the purpose of the Program, asset means the value of the household s savings and any equity in stocks, bonds, real property, or other forms of capital investment. Asset does not include items reasonably necessary for the personal use of the household, such as personal effects, furniture, appliances, automobile and real or personal property used in a business or undertaking, which is a primary source of livelihood for such households.) REQUIRED DEMOGRAPHIC DATA Please provide us with the following information for U. S. Department of Housing and Urban Development reporting purposes (mandatory): Applicant/Co-Applicant Racial Categories American Indian/Alaskan Native Asian or Pacific Islander African American Caucasian Other: (provide) Applicant/Co-Applicant Ethnic Categories Hispanic or Latino Non-Hispanic or Latino Please check all below which apply Female Head of Household Senior Citizen Disabled Hand-deliver (preferably) or Mail this Application along with copies of all documents: Return the signed 1) Application, 2) the required information listed on the application, and 3) Asset Worksheet only to: City of Monterey Housing and Property Management Purchase & Resale Program City Hall

3 Updated 3/10/2014

4 Housing and Property Management Purchase and Resale Program Overview The Monterey City Council has made the City s Purchase and Resale Program a high priority because it assists renters to become first-time homeowners. This Program was established to provide reasonably priced homeownership units in Monterey. WHAT IS THE "PURCHASE AND RESALE PROGRAM"? The Purchase and Resale Program consists of the sale of a deed-restricted house or condominium through the City that is priced below a comparable non-restricted house or condo. In order to qualify to purchase a home, the adult members of the household shall not have owned a home for the previous three years (some exceptions apply.) All units are deed restricted for permanent affordability, with the City having an option to purchase the units from subsequent owners. The Deed Restriction provides the City with the right of first refusal to buy the Purchase and Resale unit from the owner when the owner wishes to sell. The unit is allowed to increase by a modest amount each year, based upon the annual Consumer s Price Index (CPI). HOW DOES OWNING A "PURCHASE AND RESALE HOME" AFFECT ME WHEN I BUY AND SELL? When You Buy When You Sell Qualify by income Qualify by Residency or by Employment Qualify as a First Time Homebuyer The buyer is the City You pay no real estate commission Sales expenses less than usual and customary During the time you own a Purchase and Resale unit, you have all the rights of homeownership. You can deduct the mortgage interest and property tax expense on your federal income tax returns; you can decorate, enjoy a sense of permanence and experience the pride of ownership. Conversely, as owner, you are responsible for maintenance and upkeep of the property. When you resell the unit to the City, it must be clean and in saleable condition for the next household. WHAT WILL THE CITY PAY ME FOR MY PURCHASE AND RESALE HOME WHEN I SELL? The price the City will pay for a Purchase and Resale Program home is the lesser of two values. Following receipt of written notification of the intent to sell from the owner, the City will order an appraisal. The City will also calculate the Consumer Price Index (CPI) value of the property based on the length of time you have owned the property. The CPI value is based on the Department of Labor's published index for the San Francisco-Oakland and San Jose area. The lower of these two values (appraised versus CPI increase) is paid to the owner. Any substantial improvements made to the property must have the City's prior written consent and are subject to certain limitations. WHO IS ELIGIBLE TO PARTICIPATE IN THE PURCHASE AND RESALE PROGRAM? Because Purchase and Resale homes are priced less than most comparable homes, they are available only to households that earn less than a certain income. The amount of income a household can earn and still be eligible depends on the number of people in the household. Additionally, residency, employment and first-time homeowner requirements apply. The chart below shows the maximum annual income according to 06/29/2016

5 household size for low and moderate-income households. These are maximum amounts for income eligibility for purchase of a house or condominium in the Purchase and Resale Program. Household Size: Low Income (80% of Median): $42,650 $48,750 $54,850 $60,900 $65,800 Median Income (100% of Median): $48,100 $54,950 $61,850 $68,700 $74,200 Moderate Income (120% of Median): $57,700 $65,950 $74,200 $82,450 $89,050 HOW DO I FINANCE A HOME? The typical real estate purchase has the following components: the Purchase Price is divided into three components: the down payment, closing costs, and the mortgage. The down payment is usually the most difficult component for first-time buyers. Buyer's Cash Down Payment: 30-Year Mortgage: Closing Costs: 3% to 5% of purchase price (depending on City funding source) Balance of the purchase price 2% of the purchase price (estimated; depends on Title Company) The lender of your choice will pre-approve you for a mortgage based on your income, your monthly expenditures and your credit history. You will have 20 days to obtain financing to purchase a unit. The Housing and Property Manager may grant one additional 20-day period. If you are not sure of the price range you are able to afford, make an appointment with a lender. Prepare for the appointment by compiling your personal financial information such as your latest income tax returns, pay stubs, current housing expense, a bank statement showing your assets for the down payment and all information concerning your debts including credit card balances, car loans, etc. In addition to making loans, the lender will also give you an estimate of closing costs associated with buying a house. WHERE DO I START? You will need to take a first-time homebuyers class. Housing Resource Center, in Salinas, is holding firsttime homebuyers classes on Saturdays. Please call them to request information on workshop dates (flyer attached to application). For more information on the Purchase and Resale Program, call the Housing and Property Management Office at (831) /29/2016

6 PURCHASE AND RESALE PROGRAM WAITING LIST PROCESS When the Housing and Property Management Office receives your application and requested documentation for the Purchase and Resale Program (PRP), it is date and time stamped. The application is reviewed for completeness and conformance to eligibility criteria, and either approved or more information is requested. After your application has been determined eligible, you will receive a form letter indicating that you have been added to the waiting list. If, however, your application and documentation are complete but you are determined to be ineligible for the program, you will be notified by form letter. If your application and documentation does not contain all the information requested, you will be sent a form letter requesting additional information. As soon as the additional information is received and reviewed, if you are deemed eligible, you will be placed on the waiting list. At any time you may request changes to your application with regard to household size, preferences for homeownership sites, address and/or phone number changes. You can stop by the Housing and Property Management Office to pick up a Declaration of Change form. Please make sure this form is returned to us as soon as possible, as it will be your responsibility to keep us informed of any changes in writing. When a home becomes available for purchase, those on the mailing list will be sent a letter indicating an open house will be held for the available property. With regard to where you are on the waiting list, the Housing Office will make the determination based on the date you brought your application into our office, and the date it was determined complete. Upon approval of your application, you will be required to take a first-time homebuyers workshop offered by the Housing Resource Center (see attached flyer). Certification of Completion needs to be submitted to the Housing and Property Management office. At this time it would be recommended to talk to a lender of your choice. The Housing and Property Management office does not make recommendations for any lender. The Housing and Property Management Office will make every effort to assist you in purchasing your first home. 06/29/2016

7

8 PURCHASE AND RESALE COOPERATING LENDERS Cooperating Lenders participating in the City of Monterey s Purchase and Resale Program ********************************************************** Bank of America 200 E. Franklin Street Office: (831) Fax: (877) Thomas Brousek, Mortgage Loan Officer Union Bank of California 1400 Munras Avenue Office: ( ) April Robbert, Senior Mortgage Consultant april.robbert@unionbank.com CHASE 291 Alvarado St Office: (831) Fax: (855) California Mortgage 200 Clock Tower Pl. Suite A-100 Carmel, CA Steven Tingley, Loan Officer Wells Fargo Bank Mortgage Inc. 399 Alvarado Street Office: (831) Toll: (1-800) Fax: (1-855) Hendrik Tjaart Pretorius, Home Mortgage Consultant hendrik.t.pretorius@wellsfargo.com Lesley Pretorius, Senior Loan Consultant lesley.h.pretorius@wellsfargo.com Blue Adobe Mortgage Carmel Rancho Lane Carmel, CA Office: (831) Fax: (831) Mike Boerlin, Loan Officer mike@blueadobemortgage.com Christine Riise, Loan Officer christine@blueadobemortgage.com Linda Francis linda@blueadobemortgage.com Jim Challis, Sales Rep Jim@blueadobemortgage.com ***Disclaimer: The City of Monterey does not endorse or recommend any agent or lending institution provided herein. This list is made available for your convenience and information only. 06/29/2016