what is a below market rate home (bmr)
TRANSCRIPT
WHAT IS A BELOW MARKET RATE HOME (BMR) BMR homes are established through a City Ordinance that is specifically targeted to expand the amount of affordable home ownership opportunities in the community. The ordinance requires that developers set aside 15% to 20% of the new units they build to be permanently affordable for low to moderate income households.
Prices are originally set and continuously maintained in compliance with the targeted income levels the Program has been established to serve. Most BMRs are priced to assist households with incomes that range from or are at below 80% of the area’s median income or incomes that range from or are at or below 120% of the area’s median incomes. Incomes are adjusted for household sizes. BMR home prices are finalized by incorporating the various housing costs, including interest rates at the time the home is originally placed on the market. Prices for future resales are then established based on how much incomes rise in the area. Accordingly, a household who purchases a BMR will be assigned a resale price by the City at the time they sell their BMR home. BMR homes in South San Francisco increase or decrease in price by the same amount that Median Incomes change in San Mateo County.
BMR prices are set. Buyers cannot offer a higher price for the unit and there is no purchasing advantage gained by the buyer in offering cash or a higher down payment for the home. Buyers are chosen by the City based on their eligibility to participate and purchase within the parameters of the City’s BMR Program.
BMRs could offer households a viable format to secure the benefits of homeownership in the City of South San Francisco. In many cases, the cost of ownership may be considerably less than purchasing an open market (not a BMR) home; and even in some cases (in today’s market) could be less than or comparable to the cost of renting a home. These privileges and benefits; however, do come with a number of restrictions that apply to BMR homeownership:
The owner must permanently reside in the home – it cannot be rented
There are guidelines that may restrict the transfer of title to another family member or heir
There are restrictions on refinancing the home, including obtaining cash out refinancing
The property must be resold at an assigned price by the City and a strict set of protocols must be maintained in selling the home
The property must be maintained in good shape and within all health and safety codes
There are restrictions in adding capital improvements to the home Prior to closing your purchase transaction, the City will be providing you a comprehensive manual and set of Program agreements that outline all the responsibilities and restrictions associated with the ownership of a South San Francisco BMR unit. It is important that you read and understand all the covenants and restrictions established in the Agreements and discussed in the Manual. These covenants must be strictly adhered to. Violation of any of the covenants could lead to a default in your ownership, which, if not cured, could lead to the required resale of your home to another eligible and qualified Program participant/owner.
There are a specific set of steps and protocols that you need to adhere to in order to become a BMR owner. Please make certain to contact the listing agent, Robert Belli at Home Quest Realty to get a package that outlines all the steps required. You can reach Robert Belli at (415) 317-8540 or at [email protected]. Alternatively you can reach his assistant, Tim Zhovreboff at (800) 480-9020 x3 or at [email protected]
The South San Francisco BMR Program is administered by the Bay Area Affordable Home Ownership Alliance, also known as the Bay Area HomeBuyer Agency
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ROB BELLI
(415) 317-8540
[email protected] CBRE 01913570
PURCHASE INSTRUCTIONS FOR: 2210 Gellert Blvd, #5103, South San Francisco, CA 94080
Below Market Rate Home
All households interested in purchasing this Below Market Rate (BMR) home
must adhere to the following instructions. Failure to do so may disqualify the
household to participate in the purchase of the home. Please make certain to read
this document in its entirety. The following instructions have been provided by
the City of South San Francisco’s Program Administrator.
The above referenced home is part of the City of South San Francisco’s affordable Below
Market Rate home ownership program. There are requirements that need to be met to
participate in the BMR Program; as well as preferences in the buyer selection and lottery
process. All outreach and Program eligibility activity will be conducted without regard to
race, color, national origin, sex, religion, familial status or disability
Core Homebuyer Eligibility Parameters
The following homebuyer eligibility requirements must be met to participate in the
purchase of the BMR. The Administrator of the Program will be reviewing
documentation to finalize and provide final determination of eligibility.
Maximum household incomes cannot exceed 80% of the San Mateo County
Area Median Income as determined by the State of California’s Housing
and Community Development Department. Incomes are adjusted by the
size of the household. Income for all non-dependent household members
will be applied to determine eligibility. Income eligibility will be reviewed
by the Program administrator (see below):
The homebuyer’s household’s lowest median FICO credit score cannot be lower
than 640
The household size must be no less than 2 people. Household members must
either be on title or claimed as dependents on the primary buyer’s tax returns.
BMR Homebuyer Priorities
Homebuyer screening priorities are established and consistent with the objectives of the
City’s affordable homebuyer program objectives. Proof will be required to validate all
Households size allowance 2 3 4
Maximum income allowance as AMI 80% 80% 80%
Maximum income allowance as $ $78,800 $88,650 $98,500
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the stated priorities prior to purchasing the property. Priorities assigned will include:
Households that have a member that currently resides in the City of South San
Francisco
Households who have a member that is currently employed in the City of South San
Francisco
First time homebuyers
The above referenced priority parameters will be incorporated into a point system that will
be applied towards determining the selection order for prospective homebuyers. The point
system is as follows:
Priority Parameter Points
Live in the City of South San Francisco 3
Work in the City of South San Francisco 3
First time homebuyer 3
Total possible points 9
Administrator The City of South San Francisco contracts a Program Administrator, Bay Area Affordable
Homeownership Alliance (BAAHA) to oversee the BMR Program eligibility and approval
process, and to manage the BMR transaction.
Executing the Sale of the BMR Home
Pre-screen BMR Applications All interested prospective BMR purchasers must submit a prescreen application to the
Administrator. You cannot be considered to participate in the purchase of the BMR until
you submit an application. Applicants can gain access to the applications from any of
the sources listed below:
Downloading the application from the Administrators website at www.myhomegateway.com
From the listing agent – Rob Belli, Home Quest Realty, (415) 317-8540 or at
By emailing and requesting a SSF BMR application from Tim Zhovreboff
[email protected] or contacting him at (800) 840-9020 x3
Applications must be filled out as accurately as possible and in in their entirety.
Applications with missing key information will not be reviewed without any further notice
to the applicant. Applicants must provide accurate answers for all questions presented on
the pre-screen application. Any gross misrepresentations of information may void the
applicant from the ability to participate in the BMR purchase process. All information
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provided in the application will be further and thoroughly scrutinized by the Administrator
when and if the applicant continues advancing through the screening and lottery process.
Applicants will receive additional instructions regarding filling out and processing the
prescreen application along with the application.
All filled out prescreen applications must be delivered to the Administrator for review.
Applicants can email, fax, or mail their completed application to the Administrator.
Email your filled out and scanned application to: [email protected]
Fax your filled out and scanned application to: (415) 231-5181
Mail your filled out application to: Tim Zhovreboff, BAAHA, 5517 Geary Blvd, #206,
San Francisco, CA 94121
An application deadline will be provided at the time the application and instructions are delivered to the applicant. Upon receipt of the pre-screen application the Administrator shall 1) contact the applicant and acknowledge the receipt of the pre-screen application; and 2) if necessary request additional pertinent information to complete the screening process
Pre- Screening Process The initial program eligibility screening process will be conducted by the Administrator.
The objective of the pre-screening process is to assess which applicants may be eligible to
advance their efforts to be entered into the lottery to purchase the BMR property. The pre-
screen is only a preliminary overview that analyzes the data provided by the applicant.
Upon completion of the BMR pre-screening process the Administrator shall issue a Notice
of Conditional Eligibility to Eligible prospective buyers. The Notice of Conditional
Eligibility will provide the ranking the City has assigned to the buyer based on the priority
system referenced above under the “BMR Homebuyer Priorities” section.
Lottery All recipients of the Notice of Conditional Eligibility will be automatically entered into
the BMR lottery. The City will instate a lottery if there are more than one equally scored
eligible buyers. The Administrator anticipates that the BMR sale will require a lottery to
be conducted. In order to assure complete objectivity in the lottery process, City staff
(not the Administrator) will conduct the lottery
Preliminary Program Approval
The highest placed winners will all be required to secure 1st lender approval from the
preferred BMR lender prior to submitting a purchase contract to the Listing Agent (Rob
Belli). The preferred lender is assigned by the Administrator. The Administrator and City
will assign a 1st lender that has the capacity and desire to lend on the BMR unit and is able
to work within the resale restrictions and provisions stipulated within the City’s BMR
documents.
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In order to secure BMR program approval all lottery winners will be required to provide
support documents to the 1st lender and the Administrator. These documents will be
supplied in order to 1) further substantiate information provided on the pre-screen
application; and 2) receive 1st lender pre-approval. Information and documents must be
provided by all non-dependent household members that will be residing and on title of the
property. Documents required include:
Three years tax returns
Two years W-2s Last two consecutive pay check stubs
Last two consecutive bank account, investment, and retirement statements
Tri-merged mortgage credit report
Complete loan application (1003)
The Administrator will commence in proceeding its underwriting process upon securing 1st
loan approval from the 1st lender. The underwriting process will include reviewing and
approving all the documents and findings from the 1st lender in addition to conducting and
underwrite to determine the households income eligibility.
Purchase Contract
Upon securing preliminary BMR program and 1
st lender approval, the real estate agent
representing the buyer (which may include the listing agent – dual agency) will be
instructed to submit a purchase contract to the listing agent and seller. In the case that the
purchase contract is written by the “listing” agent, all dual agency disclosure
documentation, including language exempting the City from any Agency related liability,
will be provided and executed with the purchase contract.
Title Company The Administrator may have a title company they prefer that already maintains a
strong understanding of the City’s BMR program.
City Oversight The City and Administrator has the authority to demand that a non-performing BMR
buyer have their contract terminated, especially if: 1) the buyer has continuously failed to
meet their original purchase agreement contingency deadlines; 2) the Administrator,
through the transaction process, discovers a material fact and/or situation that adversely
affects the buyers Program eligibility; and 3) the buyer, through their interaction and
activity, is unrealistically delaying and blocking the ability of a subsequent eligible BMR
buyer to purchase the subject unit.
BMR PRE-SCREEN APPLICATION INSTRUCTIONS
The following application is only used to establish a preliminary BMR Program eligibility determination. If deemed eligible, applicants will be invited to participate in a Program lottery to be conducted by the City of South San Francisco. Lottery winners, by priority determined through the lottery process, will be entered into a comprehensive approval process to finalize their Program approval status and capacity to proceed forward with the purchase of the property Please read the entire package that is attached with this application for a detailed explanation of the BMR purchase process. The package will also provide you additional insight on data required to fill out the prescreen application. It is important that the application is filled out accurately. Wrongful and withheld information could lead to the disqualification of the applicant to participate in the lottery process. Make certain to fill out all sections pertaining to your situation. Please make certain to write eligibly. We are not responsible for not being able to contact you if we cannot read your email address or phone number. Completed applications must be submitted to the City’s Program Administrator, the Bay Area Homeownership Alliance (BAAHA). Applications can be submitted by: Scanning and emailing the application (preferred) to [email protected] Faxing the completed application to (415) 231-5181 Mailing the completed application to BAAHA, 5517 Geary Blvd, #206, San Francisco, CA 94121
All applications must be received by no later than 5:00pm on Monday, November 28th, 2016. Please submit your application as soon as possible. This will provide the Administrator a better chance to review your application and request additional information, if necessary. The Administrator will verify receipt of your application and contact you with any additional questions or concerns that they may have. All communications will be conducted by email. For any further questions or concerns please contact the listing agent, Rob Belli at Home Quest Realty either (415) 317-8540 or at [email protected].
BELOW MARKET RATE UNIT
APPLICATION / WORKSHEET
DATE RECEIVED:
(BAHBA fill out only)
The accuracy of information provided in this worksheet is
very important. An incomplete or wrongfully filled out
application could disqualify you from the screening and
selection process
CO-BORROWER GENERAL INFORMATION
First Name: MI Last Name:
Social Security No: Date of Birth: / /
Home Address:
City: State Zip Code:
Home Phone: ( ) Work Phone: ( )
Cell Phone: ( )
Home Email: Work Email:
What is your relationship to the borrower:
CO-BORROWER HOUSEHOLD INFORMATION
Number in Household: Have you owned a home in the last 3 years?
Monthly Rent $ Years Renting at Current Location:
Have you attended a Home Buyer Seminar or Workshop?
Which One? Date: City:
CO-BORROWER EMPLOYMENT INFORMATION
Are you self employed? For How Long?
Current Employer: Title:
Work Address:
City: State Zip Code
From: Mo / Yr To: Mo / Yr
If less than 2 years please fill out prior employment history:
Prior Employer Title:
From: Mo /Yr To: Mo /Yr
MYHOMEGATEWAY.ORG
5517 Geary Blvd, Suite 206 San Francisco, CA 94121 [email protected] (800) 480-9020 x3
FULL ADDRESS OF PROPERTY APPLYING FOR (if specified):
2210 Gellert Blvd, #5103, South San Francisco, CA 94080
BORROWER GENERAL INFORMATION
First Name: MI Last Name:
Social Security No: Date of Birth: / /
Home Address:
City: State: Zip Code:
Home Phone: ( ) Work Phone: ( )
Cell Phone: ( )
Home Email: Work Email:
BORROWER HOUSEHOLD INFORMATION
Number in Household: Have you owned a home in the last 3 years?
Monthly Rent $ Years Renting at Current Location:
Have you attended a Home Buyer Seminar or Workshop?
Which One? Date: City:
BORROWER EMPLOYMENT INFORMATION
Are you self employed? For How Long?
Current Employer: Title:
Work Address:
City: State Zip Code
From: Mo / Yr To: Mo / Yr
If less than 2 years please fill out prior employment history:
Prior Employer Title:
From: Mo /Yr To: Mo /Yr
JOINT GENERAL INFORMATION (for both the Borrower & Co-Borrower
Are you currently working with a real estate agent? Full Name, Company, & Contact info:
Are you currently working with a lender/ loan officer? Full Name, Company, & Contact info:
Additional comments and notes:
BORROWER INCOME CO-BORROWER INCOME
SOURCE GROSS AMOUNT PER YEAR SOURCE GROSS AMOUNT PER YEAR
Current Employment $ Current Employment $
$ $
$ $
BORROWER ASSET ACCOUNTS (CASH & EQUIVALENT) CO-BORROWER ASSET ACCOUNTS (CASH & EQUIVALENT)
NAME OF BANK TYPE ESTIMATED BALANCE NAME OF BANK TYPE
D
BALANCE
Checking Checking $
Savings Savings $
$
BORROWER INVESTMENT AND RETIRMENT ACCOUNTS CO-BORROWER INVESTMENT AND RETIRMENT ACCOUNTS
TYPE OF INVESTENT/ RETIREMENT ACCOUNT CURRENT VALUE TYPE OF INVESTENT/ RETIREMENT ACCOUNT
CURRENT
VALUE
$ $
$ $
$ $
$ $
BORROWER DEBTS (INSTALLMENTS & CREDIT CARDS) CO-BORROWER DEBTS (INSTALLMENTS & CREDIT CARDS)
CURRENT MINIMUM CURRENT MINIMUM
NAME OF LENDOR/CREDITOR BALANCE MOS PYMNT NAME OF LENDOR/CREDITOR BALANCE MOS PYMNT
$ $ $ $
$ $ $ $
$ $ $ $
$ $ $ $
FICO score in known: FICO score if known
IS THERE ANY OTHER INFORMATION THAT YOU FEEL WE NEED? (or for additional information related to the above questions)
BORROWER ACKNOWLDEGEMENT AND CREDIT CHECK AUTHORIZATION
I/We verify that the above information is truthful and accurate. Information provided and derived through this application will be used to determine your Program eligibility and home purchase
capacity. Inaccurate or wrongful information could, at the Program Administrator's discretion, disqualify you from the Program screening process. I/We authorize BAHBA to share our
information with an affiliated organization for the purpose of completing the program screening process. If required, I/We authorize BAHBA to request additional information; including
requesting one of its affiliates to obtain a Tri-Agency Mortgage Credit Report (“Report”) on me/us. If I/we provide BAHBA with a recent credit report, my/our signature verifies that the
provided tri-agency report is accurate and was run within the last 45 days.
BORROWER CO-BORROWER
Signature Printed Name Date Signature Printed Name Date