Thank you for your interest in buying a home at Guilford Court

Transcription

Thank you for your interest in buying a home at Guilford Court!
Completing this application is your first step towards qualifying to
purchase a home at Guilford Court. Guilford Court move-in target date
is early 2017.
Applications will be accepted period from Monday, August 22 to
Friday, September 23, 2016.
Applications must include the
completed Application Form with all necessary supporting
documentation attached.
Please review the attached Whittier Housing Authority Affordable
Homeownership Program (AHOP) Guidelines to understand
eligibility requirements. Completion and submission of an
application serves as an acknowledgement that applicant has
reviewed AHOP Guidelines.
Mail Application Form and supporting documentation to:
Heritage Housing Partners
Attn: Guilford Court
608 North Fair Oaks Avenue, #126
Pasadena, CA 91103
Send application via US Mail, FedEx, or third party shipping service.
HHP cannot confirm receipt; please ensure that you receive tracking
information.
Hand-delivered applications will NOT be accepted.
Applications must be postmarked by September 23, 2016.
Applications postmarked AFTER September 23, 2016 will be returned.
Page 1
Application Checklist
To ensure a complete application is submitted, please review and check off that all the following
items are included with your application
1.
COMPLETE & SIGN APPLICATION
q
Complete & Sign: “Whittier Housing Authority Affordable Home Ownership Program
(AHOP) Interest Form and Pre-Qualification Application” (Pages 3-5)
q
Complete & Sign: “Heritage Housing Partners Affordable Housing Program Certification
Statement” (Page 6)
2.
PROVIDE REQUIRED SUPPORTING DOCUMENTATION
q
Submit Credit Report. Provide a copy of your credit report, dated within the last 90 days.
You may use any credit reporting web site of your choice. One such web site is
www.annualcreditreport.com Regardless of which site you use, your submittal to us
must include both your credit report and your credit score. You are solely responsible for
any costs associated with requesting your credit report and credit score.
q
Submit Pay Check Stubs. Provide copies of the last two (2) months of paycheck stubs for
yourself and all employed members of your household that you listed in this application.
(any member of your household 18 years of age or older that will be living with you).
q
Submit Bank and Investment Account Statements. Provide copies of account statements
for the last three (3) months for all of the following types of accounts: savings; checking;
certificate of deposit (CD); money market.
q
Submit Income Tax Filings. Provide copies of your completed Federal Income Tax
filings for 2013, 2014 and 2015, including copies of W-2 and/or 1099 forms.
If Self-Employed
q
Submit Profit & Loss Statement. If you are self-employed or own a small business, please
provide a copy of a profit & lost statement for your current operating year.
3.
SUBMIT APPLICATION (#1) & REQUIRED SUPPORTING DOCUMENTS (#2)
q
Mail ALL of the above items to:
Attn: Guilford Court
608 North Fair Oaks Avenue, #126
Pasadena, CA 91103
Important Delivery Notes:
• Hand delivered applications will NOT be accepted.
• Receipt of application will NOT be acknowledged, so please request proof of
delivery service from Post Office, FEDEX, UPS or similar delivery service.
• Do NOT send original documents, Application materials will NOT be returned.
Page 2
Whittier Housing Authority
Affordable Home Ownership Program (AHOP)
INTEREST FORM AND PRE-QUALIFICATION APPLICATION
PARTICIPANTS
Borrower:
Age:
Spouse/Co-Borrower:
Age:
Mailing Address:
City:
Phone#:
State:
Zip Code:
Work#:
E-mail Address:
Borrower’s home address for last five years (include beginning and ending month and year at
each address):
Spouse/Co-Borrower’s address for last five years (include beginning and ending month and
year at each address):
OTHER HOUSEHOLD MEMBERS (not listed above):
Total Household Size:
Name:
Relationship:
Age:
Name:
Relationship:
Age:
Name:
Relationship:
Age:
Name:
Relationship:
Age:
(Son, Daughter, Father, Mother, etc.)
EMPLOYMENT
Borrower Employer:
How Long:
Occupation:
Employer Address:
Previous Employer (if less than 5 yrs. with current employer):
Address:
Occupation:
How Long:
Check One (if applicable, enter badge or certificate number in the space provided):
Sworn Public Safety Personnel;
Registered Medical Professional;
Certified or
Teacher with Bachelors Degree or
higher employed by Accredited Public or Private School;
Co-Borrower Employer:
How Long:
Occupation:
Employer Address:
Page 3
none of the above
Previous Employer (if less than 5 yrs. with current employer):
Address:
Occupation: __________________ How Long:
Check One (if applicable, enter badge or certificate number in the space provided):
Sworn Public Safety Personnel;
Registered Medical Professional;
Certified or
Teacher with Bachelors Degree or
higher employed by Accredited Public or Private School;
none of the above
EMPLOYMENT GROSS INCOME
$
per:
wk. , 2 wks. , 1st & 15th mo. , mo. (circle only one)
Spouse/Co-Borrower: $
per:
wk. , 2 wks. , 1st & 15th mo. , mo. (circle only one)
Borrower Income:
OTHER MONTHLY INCOME (i.e. social security, SSI, disability, AFDC, general relief,
pension, alimony, child support, unemployment insurance, self-employed profits, interest from
bank accounts and cash funds, etc.)
Borrower:
$
Type(s):
Borrower:
$
Type(s):
Co-Borrower: $
Type(s):
Co-Borrower: $
Type(s):
INCOME OF OTHER HOUSEHOLD MEMBERS: Provide the income of any person listed as
a household member 18 years or older.
Name:
Income:
per: wk., 2 wks., month
Name:
Income:
Name:
Income:
DEBTS (List total balance due and minimum monthly payment):
Auto Loans:
Lender/Co. Name
Total Balance Due
Monthly Payment
Other /Debts (i.e. loans, credit cards, department store cards, etc.):
Lender/Co. Name
Total Balance Due
*Attach additional page if necessary
Total Monthly Payments (add all monthly payments):
Page 4
$
Monthly Payment
ADDITIONAL INFORMATION
Borrower is a
U.S. Citizen
Legal Resident
Co-Borrower is a
U.S. Citizen
Legal Resident
Does Borrower or Co-Borrower have an immediate family member residing in the City of
Whittier?
Yes
No; If yes, list address and relationship to Borrower:
Has Borrower or Co-Borrower attended the 8-hour Home Buyer education course provided by
a HUD certified trainer?
Yes
No; if yes, attach certificate.
Person(s) buying home is/are (please check one of the following):
Married/Registered Domestic Partners
Blood Relatives
Operation of Law
Single
Related by
What size unit are you most interested in?
____1 bedroom; ____2 BR; ____3 BR
What is the smallest unit you would accept?
____1 bedroom; ____2 BR; ____3 BR
Have you owned a home within the past three years?
Yes
No
Do you have funds for a minimum 3% down payment
and closing costs?
Yes
No
If “yes”, how much: $
Do you have a good credit history?
Yes
No
If ”no”, please explain (attach additional pages if necessary):
I/WE DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE
ANSWERS GIVEN IN THIS WHITTIER AFFORDABLE HOME OWNERSHIP PROGRAM (AHOP OR PROGRAM)
INTEREST FORM AND PRE-QUALIFICATION APPLICATION ARE TRUE AND CORRECT TO THE BEST OF
MY/OUR KNOWLEDGE. I/WE ACKNOWLEDGE AND UNDERSTAND THAT INFORMATION PROVIDED ON THIS
FORM WILL BE RELIED UPON FOR PURPOSES OF DETERMINING MY/OUR ELIGIBILITY AND PRIORITY STATUS
FOR THE PROGRAM. I/WE FURTHER ACKNOWLEDGE THAT A MATERIAL MISSTATEMENT FRAUDULENTLY
OR NEGLIGENTLY MADE IN THIS APPLICATION OR IN ANY OTHER STATEMENT MADE BY ME/US IN
CONNECTION WITH THE APPLICATION FOR THE PROGRAM MAY CONSTITUTE A VIOLATION PUNISHABLE BY
A FINE AND/OR DENIAL OF MY/OUR APPLICATION. IF A PROGRAM LOAN HAS BEEN ISSUED PRIOR TO THE
DISCOVERY OF THE FALSE STATEMENT, IMMEDIATE CANCELLATION OF THE PROGRAM LOAN WILL OCCUR,
IN ADDITION TO ANY CRIMINAL PENALTY IMPOSED BY LAW.
Borrower Signature
Date
Co-Borrower Signature
Page 5
Date
Affordable Housing Program Certification Statement
I, __________________________________, hereby certify that the information provided in this
(print applicant name above)
Homebuyer Application (Application) is an accurate account of my current financial status and
authorize representatives of Heritage Housing Partners (HHP) and the City of Whittier/Whittier
Housing Authority (City) to evaluate my eligibility for homeownership at Guilford Court
(Project). I further authorize HHP staff to review and discuss financing options with preferred
mortgage lender representatives to evaluate my ability to qualify for a home mortgage loan. I
understand that all parties will strive to keep my personal information confidential and will not
share this information with any unauthorized parties.
I further acknowledge and agree as follows:
(1) Should I qualify to purchase a home at Project, I will occupy the property and use it
as my primary residence;
(2) I understand that I will need to qualify and be approved by a preferred mortgage
lender for a primary home mortgage loan if my application is accepted;
(3) To the best of my knowledge, I meet the income and program qualifications for the
purchase of a home at the Project;
(4) Even if I qualify for all required financing and/or meet all qualifications so
established in the application, I may not be selected to purchase a home at the Project. I
understand that the number of applications from qualified applicants may exceed the
number of units that will be available, and that otherwise well-qualified applicants,
including myself, may be unable to purchase a unit; and,
(5) I understand that HHP will be unable to return any of the financial information
(including pay stubs, bank statements, credit reports, and similar items) submitted with
my application and that HHP intends to destroy such materials after a mandatory
compliance period. I certify that I have submitted COPIES of originals, and I understand
it is my responsibility to assure I retain a copy or the original of the documents I am
submitting.
I have read and agree to all of the above certifications:
Signature of Applicant:
__________________________________ Date: ______________
Printed Name of Applicant: __________________________________
Page 6
APPENDIX:
AFFORDABLE HOME OWNERSHIP
PROGRAM (AHOP)
GUIDELINES
Please review the following AHOP
Guidelines to understand program and
eligibility requirements. Completion and
submission of an application serves as
an acknowledgement that applicant has
reviewed and understands these
guidelines.
You Do Not Need To Return These
Guidelines
AFFORDABLE HOME OWNERSHIP PROGRAM (AHOP)
I. Rules and Regulations
1.
PROGRAM SUMMARY
To increase homeownership opportunities for eligible Participants (described in
section 2 below) who otherwise would not be able to purchase a home in Whittier,
the Whittier Housing Authority’s (the “WHA’s”) Affordable Home Ownership Program
(AHOP, or the “Program”) provides deferred loans to moderate-income first-time
home buyers to purchase a condominium, town home, or single-family home in
Whittier. Homes purchased under the Program have specific resale restrictions that
intend to maintain the affordable units for a minimum of 45 years and protect the
WHA’s housing funds. Except for an “Equity Appreciation Share” feature described
below, the loans are interest-free.
With the WHA’s assistance, Participants have the opportunity to purchase a home,
either directly from the WHA, a Participating Developer, or from an existing Program
Participant, at an Affordable Sales Price (as defined in section 6). The priority to
purchase a home through the Program is based on the preference point system
described in section 4 below.
2.
ELIGIBLE PARTICIPANTS
•
First-Time Home Buyers. Applicants (all persons listed on the title of the
assisted Property) must not have had ownership interest in a principal
residence at any time within the three (3) years preceding application date.
Exceptions can be made in the discretion of the WHA in the case of divorce
where the Applicant is the spouse who in the dissolution loses all interest in a
house. Co-signers or co-borrowers who are not a part of the household are
not allowed.
•
Home Buyer Education. Applicants will be required to complete a Home
Buyer Education Course on homeownership, as approved by the WHA.
Applicants can call the Los Angeles County Community Development
Commission 1 at (323) 890-7001 3.3.3 for available workshop dates, fees, and
registration. Applicants will receive a valid Certificate of Completion as proof
of attendance. The Certificate of Completion must be submitted to the WHA.
•
Income Requirement.
Applicant’s combined gross annual household
income must fall within the moderate income category for Los Angeles
County, as published by the California Housing and Community Development
1
IF LACDC workshops are not available, applicants may be able to attend the 8-hour HUD approved course by contacting
ClearPoint Financial Solutions (877)877-1995 LA Neighborhood Housing Services at (213)381-2862, New Economics for Women at
(213)483-2060 ext 106, ACORN at (213)484-1475, East LA Community Corporation at (323)269-4214, Consumer Credit Counseling
Services of Orange County at (714)547-2227 ext 0, Neighborhood Housing Services of Orange County at (714)490-1250.
O:\Redevelopment and Housing\2-Programs\AHOP\Legal Documents\WHA-AHOP Program Description_08_19_16 for public.docx
Whittier AHOP
Program Guidelines
Page 2 of 15
Department (HCD). These income limits are subject to change on an annual
basis. Applicant’s income level must meet the requirement at the time the
Program Interest Form is submitted, and continue to qualify at the time of
purchase of the Property.
Allowable Gross Household Incomes
2016*
Household Size
Minimum Income
Maximum Income
1
2
3
4
5
6
7
8
$48,650
$55,600
$62,550
$69,450
$75,050
$80,600
$86,150
$91,700
$54,450
$62,200
$70,000
$77,750
$83,950
$90,200
$96,400
$102,650
*Periodically adjusted by HCD, updated May 2016.
•
Mortgage. Participants must be able to qualify for a 30-year, fixed interest
rate, fully amortizing mortgage from one of the WHA approved lenders,
without co-borrowers or co-signers that will not reside in the property. (While
first loan approval is dependent on many factors, lenders typically require a
FICO credit score minimum of 620 to 640.)
•
Capacity. Participants must be of legal age and must have the capacity to
enter into binding contracts.
•
Household Size Must Meet the Minimum and Maximum Size Criteria for
Available Unit Size. For the purposes of this program the United States
Department of Housing and Urban Development (HUD) Section 8 Housing
Quality Standards will be utilized to determine the maximum occupants per
unit. This standard, as shown below, allows for two persons per sleeping
room plus one person. The minimum household size is established to
prevent larger units from being purchased by small households that would
otherwise fit in a smaller unit.
Minimum and Maximum Household Size by Unit Size
Unit Size
Studio
One Bedroom
Two Bedroom
Three Bedroom
Four Bedroom
•
Minimum Household
Size
1
1
1
2
3
Maximum Household
Size
2
3
5
7
9
No Conflicts. No member of the City Council/Housing Authority Board nor
any employee, official, or consultant who exercises any decision-making
-213230 Penn Street, Whittier, California 90602 - (562) 567-9320 - Fax (562) 567-2872
Whittier AHOP
Program Guidelines
Page 3 of 15
function in connection with the Program (nor any immediate family member of
such person) is eligible for the Program.
3.
PROPERTY
The Properties are specific designated homes located in the City of Whittier, owned
by either the WHA, a Participating Developer, or existing Program Participants.
These Properties may be single-family detached homes, town homes, or
condominiums.
4.
PARTICIPATION PRIORITY
When Properties are available for purchase through this Program, Participants are
offered the opportunity to purchase the Properties through a priority list. The priority
list is established based on the total preference point system which is calculated
based on the residency, the location of the employment of the Applicant, and other
criteria. Priorities are given to the following:
•
•
•
•
•
Current city of Whittier residents displaced by the WHA;
Current city of Whittier residents;
Persons with current employment in the city of Whittier;
Persons currently providing public safety (sworn police or fire personnel),
education, or medical services in the city of Whittier; and
The length of time a person has been on the waiting list.
The Applicant’s priority will be established based on all five sections of the
preference point system chart. The higher the point total the higher the priority. For
Applicants with the same point total, lottery drawings will be conducted to determine
the priority. Applicant priority ranking will be based on characteristics of either the
head of household or the two primary members of the household. If two household
members are used for the priority ranking, the highest ranking person in each
category will be utilized to compute the total.
When necessary and available, Applicant license and/or registration as a public
safety, education or medical services employee shall be checked by contacting their
employer or by using the State of California, Department of Consumer Affairs license
lookup web page located at http://www2.dca.ca.gov/pls/wllpub/wllquery$.startup.
The priority list established by the preference point system is good for two (2) years
from the time of establishment. A new priority list may be established or refreshed,
as needed, by restarting the entire application process. New Applicants may also
be added to the priority list at any time.
5.
FINANCING
The financing of the purchase of the Property requires the Applicant, the private
lending institution, and the WHA to work together.
Whittier AHOP
Program Guidelines
Page 4 of 15
•
Applicant’s First Lien. Applicants must obtain a 30-year fixed interest rate,
fully amortizing, mortgage loan in the amount equal to no more than 97% of
the Affordable Sales Price (determined based on their income category and
the number of bedrooms of the Property). This mortgage is to be secured by
a First Deed of Trust from one of the private lending institutions approved by
the WHA. The financial criteria used by the private lenders may be different
and possibly more stringent than that used by the WHA. The mortgage may
be FHA, VA, or conventional. The mortgage payment, plus other housing
related expenditures, may not exceed the Affordable Sales Price established
by the California Health and Safety Code Section 50052.5. See Section 7
AFFORDABLE SALES PRICE for more detailed information.
Default in payments on the First Lien will also constitute default under the WHA’s
second Deed of Trust and may result in foreclosure by the WHA.
6.
•
Applicant’s Down Payment and Closing Costs. Applicant must contribute
a minimum down payment of three percent (3%) of the Affordable Sales Price
plus any closing costs for the purchase of the Property. Funds for down
payment and closing costs must be from Participant’s own sources.
•
WHA’s Assistance to Participant. The WHA provides a deferred loan to
Participant to assure that the home is available at an Affordable Sales Price.
The WHA’s loan amount is equal to the market price, less the determined
Affordable Sales Price for the Property.
See Section 6 FINANCIAL
ASSISTANCE and Section 7 AFFORDABLE SALES PRICE for more detailed
information.
FINANCIAL ASSISTANCE
The WHA’s loan, funded by the low- and moderate-income housing set-aside funds,
is secured by a deed of trust as a second lien on the title, subordinate only to the lien
of the first mortgage lender (the “First Lien”). The WHA’s loan amount is the
difference between market price and the Affordable Sales Price. The Affordable
Sales Price is the sum of the First Lien (the amount of which must be determined in
accordance with California Health and Safety Code Section 50052.5, as described in
Section 7 below) and the down payment.
A sample calculation is illustrated as follows:
Affordable Sales Price = 3-Bedroom Unit - 1st Mortgage + 5% Down Payment
+
1st Mortgage
Down Payment (5% of the Affordable Sales Price)
Affordable Sales Price
+
$264,100
13,900
$278,000
WHA’s Loan Amount = Market Price – Affordable Sales Price
Market Price (Purchase Price)
$477,300
Whittier AHOP
Program Guidelines
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7.
-
Affordable Sales Price
WHA’s Loan Amount
- $278,000
$199,300
•
Refinancing/Subordination. No refinancing of the Participant’s First Lien
may be undertaken without the written consent of the WHA. To protect the
WHA’s financial interest in the Property, the WHA will not subordinate its
Deed of Trust to any cash-out refinance, a new first Deed of Trust that has a
variable interest rate, or a loan that includes any negative amortization. The
WHA will not subordinate below a second position on the title. The WHA also
will not subordinate to a refinancing loan unless the income requirements and
affordability requirements are met. The WHA would consider subordination
only if the Participant desires to refinance their existing First Lien with no cash
out to a lower fixed interest rate, with the intent to lower their mortgage
payment. The WHA allows the Participant to roll customary fees, but not
prepaid interest points, incurred as part of the refinance into the new loan
amount.
•
Additional Financing. To ensure that the Participant is living “affordably”
and not incurring additional payment obligations, in the event that the
Participant attempts to obtain a home equity loan secured by a third (or
subsequent) Deed of Trust on the Property, a default will occur and the WHA
will have the option to purchase the Property at the Price that would result in
an Affordable Sales Price to a hypothetical moderate income buyer.
Participants with extraordinary circumstances that need financial assistance
from the home’s equity will be considered on a case-by-case basis. Written
request for a waiver of the provision against additional financing must be
submitted to the WHA’s Executive Director for consideration prior to obtaining
an additional loan. The WHA has the sole discretion in approving or denying
the request.
AFFORDABLE SALES PRICE
The maximum allowable amount Participants may pay for housing related
expenditures when participating in the Program is based on the provisions of the
California Health & Safety Code Section 50052.5.
Affordable Sales Price, defined by the California Health and Safety Code Section
50052.5, is determined based on the number of bedrooms of the Property and the
income category of the buyer. It is the maximum amount of gross monthly
household income that can be used for the cost of housing, which includes the
monthly mortgage payment, property taxes, hazard insurance, homeowners
association fees, utilities, and maintenance.
Affordable Sales Price is set at defined percentages of the Los Angeles County
median income. For moderate-income households, the Affordable Sales Price is not
less than 28 percent of the gross income of the actual income of the household
purchasing the home, and not more than the product of 35 percent times 110
percent of the Los Angeles area median income, adjusted for family size appropriate
Whittier AHOP
Program Guidelines
Page 6 of 15
for the unit. Family size appropriate for the unit is not an occupancy standard.
Rather, it is a benchmark used in a standardized Affordable Sales Price calculation.
The household sizes used in California Health and Safety Code Section 50052.5(h)
calculations are as follows: a household of one person in the case of a studio unit,
two persons in the case of a one-bedroom unit, three persons in the case of a twobedroom unit, four persons in the case of a three bedroom unit, and five persons in
the case of a four bedroom unit. The cost of a housing unit is set based on the
number of bedrooms in the unit, not the number of persons in the household
occupying the unit.
A sample calculation to determine the Affordable Sales Price is illustrated as follows:
Scenario:
•
•
Property: a 3-bedroom condominium
Applicant: a 3-person household with a gross annual income of $67,000
Steps to Determine the Income Category of the Applicant
1.
To qualify for the Program, the Applicant needs to be a moderate-income
household. The 2016 moderate-income range for Los Angeles County for a
3-person household is $62,550 to $70,000.
2.
The Applicant’s gross annual income of $67,000 falls within the range, and
therefore qualifies for the Program.
Whittier AHOP
Program Guidelines
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Steps to Determine the Affordable Sales Price based on the Size of the Property
1. Size of the Household appropriate for the Property
= # of Bedrooms + 1
=3+1
=4
2. Calculated Income available per California Health and Safety Code 50052.5
formula:
= 110% x median income adjusted for household size
= 110% x $64,800*
= $71,280
*The 2016 Los Angeles County area median income for a household of 4 is $64,800.
3. Maximum Affordable Sales Price
= 35% of the Calculated Income
35% x $71,280 = $24,948/year
= $2,079/month
4.
Maximum monthly mortgage payment is the percentage of the maximum
income less other housing related costs. For purposes of this example, the
sum of other housing related costs (i.e., property taxes, hazard insurance,
Homeowners Association Fees, utilities, maintenance, and property taxes) is
assumed to be $661 per month.
$2,079 - $661 = $1,418/month.
5.
Maximum Mortgage Amount for a 30-year fixed interest rate loan at 5.0% that
yields a monthly payment of $1,418 is approximately $261,500.
6.
Adding the 5% benchmark down payment requirement of $13,900 to the
above calculated mortgage amount of $261,500 equals a maximum
Affordable Sales Price of:
$278,000
Scenario Summary: Based on the preceding example, that is based on the
benchmark standards imposed by California Health and Safety Code Section
50052.5, the Affordable Sales Price for a three-bedroom unit is set at $278,000. The
home buyer has the flexibility to modify the mortgage and/or down payment amount.
However, the total Affordable Sales Price for a three-bedroom unit cannot exceed
$278,000.
Whittier AHOP
Program Guidelines
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8.
RESALE OF THE PROPERTY
To preserve the supply of affordable housing stock in Whittier, the Properties
purchased through the Program will remain in the Program as affordable units for a
minimum of 45 years, or a shorter period in the rare event that Resale Priority 3 (see
below) is exercised.
When a Participant intends to sell the Property, he/she must notify the WHA in
writing via certified mail sent to City Hall. There are three resale options presented
below in priority order. The affordable units shall only be sold under these
prescribed conditions.
THIS PROGRAM IS NOT DESIGNED FOR PARTICIPANTS TO REALIZE A
LARGE AMOUNT OF EQUITY THROUGH THE RESALE OF THE PROPERTY. IN
PRIORITY 1 AND 2, THE RESALE PRICE IS RESTRICTED AT THE AFFORDABLE
SALES PRICE, WHICH IS BELOW THE MARKET VALUE, WHERE THE SELLING
PARTICIPANT WOULD ONLY RECEIVE A LIMITED EQUITY GAIN, EVEN IN A
POTENTIAL PROFITABLE MARKET.
IN PRIORITY 3, THE SELLING
PARTICIPANT WOULD BE REQUIRED TO SHARE ANY REALIZED EQUITY WITH
THE WHA.
Priority 1: Selling to An Eligible Purchaser
As a first priority, the Participant must sell the home to an income Eligible Household
at an Affordable Sales Price. Participants interested in selling should contact the
WHA as soon as possible to seek assistance in identifying an Eligible Household.
The WHA will maintain a list of potential buyers who have expressed interest in
purchasing an affordable home in Whittier. Potential buyers will be ranked in order
of priority as described in Section 4 PARTICIPATION. The highest ranked
household that fits with the occupancy standard for the available unit will be given
the first priority in purchasing the available unit.
In order to verify the potential Buyer's status as an Eligible Household, the
Participant shall submit to the WHA adequate information evidencing the income and
household size of the proposed buyer. Said income information shall be submitted
together with the notice of proposed sale (“Notice of Sale”) not less than sixty (60)
days prior to the proposed sale.
A new owner would be required to record a new silent second loan in favor of the
WHA to ensure that the Property will remain affordable for the remaining term of the
original 45-year covenant period.
Resale Price. The maximum allowable resale price is based on the Affordable
Sales Price as calculated at the time of the resale. If the home is sold under Priority
1, the outstanding WHA loan would be deemed to be repaid when escrow closes on
the escrow for the resale. A new second deed of trust will be issued to the next
Participant in an amount equal to the then current fair market value of the Property
minus the defined Affordable Sales Price.
Whittier AHOP
Program Guidelines
Page 9 of 15
Priority 2: WHA Buy-Back
If efforts to find an Eligible Household are not successful, the Participant shall
provide its Notice of Option, triggering the WHA’s option to purchase the unit back.
The WHA has 45 days after the receipt of the Notice of Option to respond to the
Participant, in writing via certified mail, that it chooses to exercise the option to buy
back. The WHA may, instead of purchasing the Property itself, assign its right to
purchase the Property to a person or entity of its choosing.
In the event that the WHA exercises the Option, then the WHA shall promptly open
escrow for the Property and shall close escrow within a reasonable time. Title to the
Property shall be delivered to the WHA at the close of escrow free and clear of
monetary liens and encumbrances, and closing costs shall be allocated in the
fashion as is customary for buyers and sellers in Los Angeles County.
Resale Price. The purchase price for the WHA is capped at the Affordable Sales
Price for a Moderate Income Household (as defined by California Health and Safety
Code Section 50052.5), as the case may be, adjusted for family size based on the
number of bedrooms in the Property. The selling Participant’s existing WHA loan
would be forgiven, and the selling Owner would not need to repay the loan.
Priority 3: Selling to An Ineligible Purchaser
If, and only if, the WHA or its designee does not exercise the Option within forty-five
(45) days, the Participant may sell the Property to any buyer at the unrestricted
market price, provided that the Equity Appreciation Share and the Note Amount are
paid to the WHA in full at the closing of the sale. This option would only be
exercised as a last resort and is strongly discouraged.
Resale Price. The Property shall be sold at the fair market value. The Participant
must repay the WHA’s entire loan and any Equity Appreciation Share, which would
be based on the resale price (or the fair market value of the property as shown by an
appraisal if the resale price is less than the fair market price). The Equity
Appreciation Share, also known as “contingent deferred interest”, is designed to
protect the WHA’s financial interest in the Property and low- to moderate-income
housing set-aside fund. It is determined based on the WHA’s original loan amount,
the original market price, and the “net appreciation” from the sale of the unit. The
“net appreciation” is the resale price less the original Purchase Price. It is calculated
before repayments of any encumbrances. For example, the equity share would be
calculated as follows:
WHA’s
Equity Share
=
WHA’s Original Loan Amount
Original Market Price (Purchase Price)
x
Net Appreciation*
* Net Appreciation = Resale Price – Purchase Price
For example:
Whittier AHOP
Program Guidelines
Page 10 of 15
WHA’s
Equity Share
=
$199,300
$477,300
=
41.8% X $122,700
=
$51,300
X ($600,000 - $477,300) = $122,700
In any case where the Property is sold at a below-market price, the WHA’s Equity
Appreciation Share shall be calculated using a current value as established by an
appraiser selected by the WHA. The cost of the appraisal would be paid by the
Participant.
The Loan Agreement also provides a credit for property owners if they have invested
funds into the unit for qualified capital improvements. These provisions are excluded
from the above example for ease of use.
(The WHA will reinvest the repayment of the WHA loan and applicable equity share
in future affordable housing opportunities.)
9.
LOAN REPAYMENT
The WHA’s assistance is a deferred loan with no annual, accruing interest, except in
some cases for the “Equity Appreciation Share” (constituting contingent deferred
appreciation interest) described in Section 8 above. The loan may not be pre-paid
and all Program restrictions are to remain in affect throughout the 45-year covenant
period. The loan will not become due unless a sale or transfer of the Property to an
ineligible buyer or another Event of Acceleration (see below) occurs. In such a case,
the loan and an Equity Appreciation Share (based on the greater of appraised value
or actual sales price) shall in the sole and absolute discretion of the WHA, become
due and payable in full.
Some examples of Events of Acceleration are as follows:
•
•
•
•
•
10.
Sale or transfer of the Property to an ineligible buyer;
Refinancing or further encumbering the Property with a third or subsequent
mortgage without prior written approval of the WHA or cash out refinancing;
Participant fails to occupy the Property as his/her principal residence;
Participant defaults under the Deed of Trust securing the loan, the
Promissory Note, or the Notice of Restrictions; or
Any person making a material misrepresentation in any affidavit or
certification made in connection with the application for, or the issuance of a
Program loan, or in the loan documents.
USE AND OCCUPANCY OF THE PROPERTY
As a condition of participation, the Participant will execute and acknowledge the
Notice of Restrictions that references the Program restrictions on the use,
occupancy and sale of the Property. The Notice of Restrictions shall be recorded
Whittier AHOP
Program Guidelines
Page 11 of 15
against the Property and its restrictions shall remain in effect 45 years following the
issuance of a Certificate of Occupancy for the unit.
11.
•
Use. Properties must be used as Participant’s principal residence and for no
other purpose except as expressly approved by the WHA in accordance with the
Whittier Municipal Code. Principal residence is defined as living at the Property
for at least eleven (11) months in a calendar year. Participant shall not enter into
an agreement for the rental or lease of all or any portion of the Property. In
addition, the Property must be used in accordance with applicable laws, including
zoning and other applicable Municipal Code requirements.
•
Maintenance Requirements. Participants must maintain Properties in good
repair and in a decent, safe, and sanitary condition consistent with community
standards and the Whittier Municipal Code.
•
No Criminal Activity/Nuisance. Participants shall not permit criminal activities
to occur on the Property or permit Property improvements to suffer deterioration
or decline, or maintain, or permit to be maintained any public or private nuisance
on or about the Property.
•
Nondiscrimination. There shall be no discrimination against or segregation of
any person or group of persons, on account of race, color, creed, religion,
ancestry, sex, marital status, national origin, age or any other basis listed in
subdivision (a) or (d) of Section 12955 of the California Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the
California Government Code, in the sale, transfer, use, occupancy, tenure or
enjoyment of the Property.
•
Property Insurance. During the term of the WHA loan, Participants must
maintain an all-risk property insurance policy insuring the Property in an amount
equal to the full replacement value of the structure on the Property. The policy
shall name the Whittier Housing Authority as additional insured/loss payee.
OWNER OCCUPANCY; ANNUAL RECERTIFICATION
Upon the closing of the escrow for the purchase of the Property, Participant usually
has 30 days to move in. The WHA may require a proof of residency (i.e. a driver’s
license indicating the new address, or a copy of a utility bill), and/or conduct a home
visit to verify the Participant’s occupancy of the Property.
Every year, the WHA may require the Participant to certify in writing that he/she is
the occupant of the Property. The WHA may also require a proof of occupancy,
conduct a home visit, and/or use other means to verify owner occupancy. The
Participant’s full cooperation is required. As part of the annual recertification, the
WHA may also obtain a current owner property profile for the Property, at the WHA’s
cost, as evidence that no subordinate financing has encumbered on the Property
Whittier AHOP
Program Guidelines
Page 12 of 15
without the WHA’s prior waiver of its option to purchase. (See Section 6 FINANCIAL
ASSISTANCE for the WHA’s policy on subordinate financing on the Property.)
12.
AMENDMENTS
These Guidelines may be changed in the future by action of the WHA. The
Executive Director of the WHA is also given discretion to make certain technical
changes to these Guidelines, as those changes are necessary due to changes in law
or changes required by one or more private First Lien lenders for the Program, and
the Executive Director may also make changes which are administrative in nature.
Whittier AHOP
Program Guidelines
Page 13 of 15
AFFORDABLE HOME OWNERSHIP PROGRAM (AHOP)
II. Procedures
Step 1:
AHOP Interest List
Applicant requests to be placed on the WHA’s AHOP Interest List. The WHA will
add new interested households to the List as requests are received.
Step 2:
Advertising and Mailing of Information
When the Program has Properties available for purchase, the opportunity to
participate in the Program will be announced in the City’s Growing Whittier
newsletter and/or other feasible means (e.g. the City’s website, local paper, utility
bills, or advertising by the project developer). Each household on the AHOP Interest
List will be mailed an information package from the WHA that includes basic
program information and an Interest Form.
Step 3:
Interest Form
Applicant submits a completed and signed Interest Form, which can be obtained
from the WHA, on or before any deadline that may be specified by the WHA.
Incomplete Interest Forms will not be accepted.
Step 4:
Applicant Attends Home Buyer Education Workshop
Applicants may call the Los Angeles County Community Development Commission
at (323) 890-7001 3.3.3 for available workshop dates, fees, and registration.
Applicants will receive a valid Certificate of Completion as proof of attendance. The
Certificate of Completion must be submitted to the WHA.
Step 5:
Preliminary Eligibility Determination
The WHA or its designee will review all Interest Forms for basic eligibility. Since the
Interest Form does not require submittal of supporting documentation, final eligibility
will not be determined until Applicant submits full documentation to first mortgage
lender as directed in Step 8 below.
Step 6:
Establishment of the Priority Participation List
Based on information submitted within the Interest Form and evaluated under the
preference point system, a priority list is established. Although highly unlikely due to
the preference point system, lottery drawings will be conducted for Applicants with
the same number of total points to determine the priority.
Whittier AHOP
Program Guidelines
Page 14 of 15
Step 7:
Highest Priority Applicants Sent a Reservation Letter
Those Participants for which a housing unit is available will be notified of their
standing by mail. The WHA will issue a reservation letter, which will be valid for 45
days.
Step 8:
Application Submittal to First Lien Holder
Upon receipt of the reservation letter, Applicants should contact one of the private
lending institutions approved by the WHA to submit an application and initiate the
process of approval for the required First Lien loan amount. First lender begins to
compile its underwriting loan package at this time. Among other items, Applicant
must submit evidence of income, family size, first-time home buyer status, down
payment and closing cost availability, and U.S. citizen or legal resident status, as
well as the certificate evidencing Applicant’s attendance at an approved first time
home buyer workshop.
A determination will be made regarding the size, type, and location of the unit that
the eligible household desires to purchase, technically qualifies to buy under the
Program rules, and is in top priority position to purchase.
Step 9:
Approval by First Lien Holder and Submittal of Purchase Contract
Upon approval from the first mortgage lender, Applicant will be offered the
opportunity to purchase the Property. Applicants will be given at least seven (7)
calendar days (but not more than fourteen (14) calendar days) to decide to enter into
a purchase contract to buy the identified unit.
Step 10: Acceptance of Purchase Contract and Submittal of Loan Package to ACS
Upon acceptance from the seller, Applicant submits the fully executed purchase offer
to the first mortgage lender. Lender formalizes its loan package for final approval.
Upon final approval of the first loan, lender submits a copy of the underwriting loan
package to Amerinational Community Services, Inc. (ACS). The list of required items
to be included in the underwriting package is shown below.
•
•
•
•
•
•
•
•
•
•
•
•
Funds Reservation Request
Fair Lending Notice
Purchase Contract signed by buyers and sellers
First Time Home Buyer Affidavit
Home buyers Assistance Program Workshop Certificate of Completion
FNMA Form 1003 application, completed and signed
Preliminary Title Report
Appraisal/Fair Market Valuation
Good Faith Estimate
Lender’s Underwriting Worksheet and approval memo
Credit Report
Three (3) years signed and complete tax returns & W2’s
Whittier AHOP
Program Guidelines
Page 15 of 15
•
•
•
•
•
•
•
•
•
Statement of household composition letter
Most recent three months bank statements
All Appropriate verifications including but not limited to:
V. O. E’s
V. O. D’s
Pay-stubs for last 30 days
Gift Letters where applicable
Explanation of derogatory credit
(FHA’s) Mortgage Credit Analysis Worksheet (MCAW) OR (FNMA) 1008
form, where applicable
Step 11: ACS Review of Loan Package and Recommendation to WHA
ACS performs its review and prepares a recommendation to the WHA to approve or
deny the request. Turnaround time is estimated to be 3 to 5 days from date of
receipt. If file is not complete, first lender will be advised of what missing items are
required and the file will be placed on hold. Once any missing items are received,
the review will be completed.
Step 12: WHA Approval of Loan
WHA reviews and approves or denies the ACS recommendation. If denied, all
parties will be notified. If approved, WHA will return to ACS the approved, signed off
recommendation. ACS will prepare and issue to lender an approval letter and
document request form.
Step 13: Final Loan Document Preparation and Loan Funding
Lender will complete the document request form and submit to ACS, who will
prepare WHA loan documents for submittal to escrow, with escrow instructions. ACS
will coordinate with lender, escrow and WHA for finalization and funding to close
escrow.
Step 14: Escrow Closing
Applicant, the First Lien lender, ACS, and the WHA will work together to close the
escrow within sixty (60) days or less as agreed upon between the Applicant and the
WHA.
Step 15: Participant’s Occupancy of the Property
Participant has thirty (30) days, after the closing of the escrow, to occupy the
Property, unless the WHA consents in writing to a longer period.

Thank you for your interest in buying a home at Guilford Court

Transcription

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