Program Updates during Covid-19:
These are unprecedented times and we at Hello Housing would like to make you aware of some resources that may be available to you as a homeowner who purchased through the City’s Below Market Rate (BMR) Program.
As you may know, on March 25, 2020, the Governor announced that nearly 200 state-chartered banks and credit unions as well as 4 of the 5 largest national banks have agreed to mortgage payment forbearances of up to 90 days to borrowers economically impacted by COVID-19. We are writing to share those options with you as well:
- Contact your bank immediately if you believe that you may not be able to make your mortgage payment.
- Contact Project Sentinel if you need assistance with Financial/Credit Counseling: housing.org.
- Visit the City of Cupertino’s COVID-19 response page: https://www.cupertino.org.
- Check out additional resources on our Resources page.
Alternatively, if you are considering selling your home, please email us.
If you are fortunate enough not to be financially impacted, we encourage you to continue paying your rent on time, saving for an emergency, and share this information to anyone in need.
City of Cupertino’s Below-Market Rate Program
Hello Housing is pleased to be administering and monitoring the City of Cupertino’s Below Market Rate (BMR) Housing Program. As part of our program management activities, Hello Housing will assist existing homeowners interested in selling, refinancing or making capital improvements to their home. Please see below for guidelines and requirements.
Program Guidelines for Refinancing
If you are a homeowner and wish to refinance you will first need to contact an experienced lender familiar with the City of Cupertino’s BMR program and direct them to Hello Housing staff. Hello Housing staff will provide the lender with a letter stating the BMR restricted value of your home and any other documentation requested. Sample subordination and program documents are available for lenders upon request to help determine if the 1st loan can work in conjunction with the City of Cupertino’s BMR program. All loans used to purchase or refinance BMR homes must have a fixed interest rate and a fixed loan term without balloon payments to minimize homeowner’s exposure to increased risks of mortgage default.
Lenders will be required to submit the following documentation to Hello Housing as part of the refinance eligibility screening:
- Refinance Application
- Refinance Checklist
- 1003 completed loan application
- 1008 or other loan underwriting form indicating amounts and terms of all financing
- A preliminary title report
- Loan Estimate and Closing Disclosure
Refinance package submittals can be emailed or mailed to:
Hello Stewardship – Cupertino Refinance
P.O. Box 423690
San Francisco, CA 94142
Program Guidelines for Sale
Please note that the resale restrictions of your home are outlined in the City of Cupertino’s BMR Program Manual and the Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Resale Restriction Agreement) made between you and the City of Cupertino at the time you purchased the home. If you wish to sell your home, you will first need to issue Hello Housing an “Owner’s Notice of Intent to Transfer”. You must do this before you put your home on the market. Please send letters to:
Hello Stewardship – Cupertino Resale
P.O. Box 423690
San Francisco, CA 94142
Hello Housing will then calculate the BMR restricted value of your home. Hello Housing will contact you within 7 days of receiving the Intent to Transfer to provide you with the next steps in the sales process, including the scheduling of any necessary inspections of your property. For more information regarding the resale process, please email Hello Housing.
Program Guidelines for Improvements
If you wish to make improvements to your home, and you want the value of the capital improvements to be taken into account when the Maximum Restricted Resale Price (or option price) is calculated, you must obtain written approval of the improvements from Hello Housing before the improvements are made. Please contact Hello Housing staff for approval. The initial cost of such improvements must be at least $2,000 or more, and the improvements must conform with existing building codes and with Federal Housing Quality Standards. A copy of the receipts and invoices must be submitted to Hello Housing for proof of the capital improvements made to your home.
BMR Program Guidelines
For a detailed description of the BMR program, please see the City of Cupertino’s BMR Program Manual.