Program Update: In order to better support our applicants during the Covid-19 Shelter in Place order, the preapplication deadline has been extended to April 9th.
Below-Market Rate Homes at The Hub
Hello Housing is pleased to be managing the sale of eight (8), three-bedroom, brand-new, Below-Market-Rate (BMR) homes on behalf of the developer, City Ventures, and the City of Daly City. The pre-application period will be open from March 5th at 9:00 am to April 9, 2020, at 5:00 pm.
All homes will have a purchase price of $678,189 and are priced to be affordable to moderate-income (120% AMI) households. Income limits apply.
Information on the Homes
Number of homes available: 8
Purchase Price: $678,189
HOA dues: $174.98
HOA dues will cover all exterior maintenance to the homes as well as to the common areas and amenity spaces on site, plus all administrative fees (HOA management, legal fees).
AMI Level: 120%
Interior Sizes: 1,317 -1,325 Sq. Ft.
Key Program Restrictions
What is a Below Market Rate Home?
A Below Market Rate Home (often called a BMR) is a home that has certain deed restrictions recorded on the property which ensure the home remains affordable for future generations. BMRs are often a result of public investment in affordable housing developments or a result of “inclusionary housing policy” which ensures affordable homes are built as a result of market-rate development.
What restrictions am I signing up for?
The most important restriction to understand is that your future selling price is restricted to the greater of:
- The price you pay for your home plus the depreciated value of any pre-approved capital improvements, or
- The total sum of an affordable purchase price that is affordable to a household earning no more than 110% of current Area Median Income of San Mateo County, plus the depreciated value of any pre-approved capital improvements.
Additionally, these homes were developed to be occupied by homeowners, so all owners on Title must occupy the home as their primary residence.
Key Program Eligibility Requirements
- Eligible households* must have at least three (3) household members to qualify for this home. All household members must live together for at least six (6) months prior to the pre-application period in order to be considered a household, as evidenced by tax returns, driver’s license, or other documentation requested by the City.
*Household members must include dependents claimed on the buyer’s tax return and/or co-buyers that will be on title. Dependents and co-buyers must reside in the home. For the purpose of the application, unborn children will not be included as household members.
- All household members must be first-time homebuyers, which means you haven’t owned a home within the past three (3) years.
- Homebuyers must have legal residency status in the United States of America at the time of pre-application.
- Homebuyers must be able to qualify for a first mortgage with a thirty (30) year, fixed rate, amortizing term with a reasonable interest rate, based on current market conditions.
- Households must provide documentation of completion of a HUD First Time Homebuyer Certification course.
- Households must have at least a 3% ($20,345) down payment of their own funds which will be verified by bank statements.
- All households must earn below 120% of the Area Median Income. Please note, depending on how much time has passed since the initial application is submitted, updated information may be required and can result in a household no longer qualifying for the program.
For more detailed information on eligibility and ongoing program requirements download the City’s Below Market Rate Ownership Unit Implementing Guidelines.
Eligible households do not have to live or work in Daly City to qualify for this opportunity. However, households that have lived or worked in the City for a minimum of six (6) months prior to the date of the pre-application can qualify for preference in the lottery.
Preference Point Categories:
City of Daly City Resident
To qualify for this preference, the household’s primary residence must be within the incorporated city limits and the household must have lived in the home for at least six (6) months prior to the pre-application. Households requesting a “live” preference must provide evidence of their eligible address through Tax Returns, Paystubs, and/or Lease documents.
Work in the City of Daly City
To qualify for this preference point a member of your household must work as a full-time (minimum 32 hours per week) permanent employee at a business located within the city limits (this includes self-employment) for at least six (6) months prior to the pre-application. Telecommuting or working from an address located in Daly City for an employer not located in the City as defined above, shall not qualify as employment in the City, unless the employer is providing the workspace in Daly City as part of its corporate/company offices. Households requesting a “work” preference must provide evidence of their eligible employment through Tax Returns, Paystubs, and/or a Letter from your Employer.
|Household Size||Income Limit at 120% AMI|
The Application Process
Buying a home, especially in the Bay Area, is an emotional journey. And because of the scarcity of affordable homes for sale, the competition to buy an affordable home in today’s market can be tremendous. Our goal is to create a qualification process that meets the City of Daly City’s program requirements AND is respectful of your time. With this in mind, we have broken the application process down into a few key steps which mean you will only have to compile a detailed application with supporting documentation if you have a reasonable chance of being offered the home for purchase.
How to Apply
- If you would like to apply for the lottery for these homes, please complete an online pre-application form by clicking on the “apply now” button on this page during the pre-application period March 5th – April 9th.
- If your pre-application is eligible, you will receive an email with your unique lottery number and the date and time of the lottery. If you do not receive an email within 24 hours of submittal, please first check your spam filter. If you still do not have an email, contact Hello Housing to ensure your application was received.
- The lottery will result in your being assigned a ranking order. The households at the top of the list will be invited to attend a mandatory workshop to learn more about the program and how to prepare and submit a complete application with copies of relevant financial information.
Complete applications received from workshop attendees by the application deadline will be screened for income eligibility*, lender qualification, household composition eligibility, first time homebuyer eligibility, preference point verification, and any other requirements outlined in the City’s Below Market Rate Ownership Unit Implementing Guidelines in lottery ranking order.
Income of spouses will be included in total household income, regardless of whether the spouse is currently living with the household unless there is a legal separation agreement.
*Hello Housing projects future income based on the Gross Income set forth on each applicant’s income documentation for each source of income.
- As specific newly built homes become available for sale, Hello Housing will offer these homes to conditionally approved households for purchase, based on their ranking order.
Hello Housing, City Ventures and the City of Daly City do not discriminate against any persons on the grounds of race, color, religion, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, marital status, familial status, source of income, genetic information, medical condition, physical disability or mental disability, or any other category protected by law.