Town of Los Gatos’ Below-Market Price Program
Hello Housing is pleased to be administering and monitoring the Town of Los Gatos’ Below-Market Price (BMP) 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. We look forward to serving the great residents of the Town of Los Gatos!
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 Town of Los Gatos’ BMP program and direct them to Hello Housing. Hello Housing staff will provide the lender with a letter stating the BMP 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 Town of Los Gatos’ BMP program. All loans used to purchase or refinance BMP homes must have a fixed interest rate and a fixed loan term without balloon payments to minimize homeowners 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:
- 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 – Los Gatos 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 Notice of Recorded Deed Restrictions, Refinance Restrictions and First Right of Refusal of the Town of Los Gatos made between you and the Town of Los Gatos at the time you purchased the home. If you wish to sell your home, you will first need to issue Hello Housing a “Notice of Intent to Sell.” Please send letters to:
Hello Stewardship – Los Gatos Resale
P.O. Box 423690
San Francisco, CA 94102
Hello Housing will then calculate the BMP restricted value of your home. Once you have submitted a Notice of Intent to Sell, the Town has 90 days to accept its right to purchase the property. The final transfer of property may not occur until up to 270 days after the Town’s receipt of your Notice of Intent to Sell. However, the owner may request that the Town accelerate these time periods. The owner would need to submit such a request in writing within 30 days of the Town’s receipt of the Notice of Intent to Sell. Hello Housing will notify the owner of the approval or denial of the request within 10 days of receipt of the hardship acceleration request. 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 would like to have the improvements considered when calculating the BMP restricted value of your home, please contact Hello Housing prior to the work being completed. If the improvements were not done in compliance with the Notice of Recorded Deed Restrictions, Refinance Restrictions and First Right of Refusal of the Town of Los Gatos, the value of the improvements will not be captured in the BMP restricted value of your home.
BMP Program Guidelines
For a detailed description of the BMP program, please see the Below Market Price Housing Program Guidelines.