City+of+Santa+Clara+Affordable+Housing+Program+Power+Point+Presentation+-+3.24.21+Session+5

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HouseKeys-City of Santa Clara Affordable Housing Program Orientation

THURSDAY, MARCH 24, 2021 6:00PM -7:30PM – SESSION #5

House Keeping

-You must be present for the entire orientation and will be considered late if you join us

after 6:10pm (you will have to register for the next orientation)

-Please do not take the Online Quiz during the Orientation If you do, your score will not count, and you will have to retake the quiz If multiple applicants are watching from the

same device, that’s ok We will provide more information about how their attendance will

be counted.

-Webinar Attendance Certificates will not be provided.

We Appreciate your Cooperation!

HouseKeys’ Mission Statement

Improve Programs that

Improve Lives

HouseKeys’ Role

We don’t build the housing

We don’t make the housing policies

HouseKeys Websites

Description Website

HouseKeys Main Site

HouseKeys Software

Application Site (to register

your household and obtain

an Application I.D.)

www.myhousekeys.com

City of Santa Clara Program

“Key” Takeaways

1 How to Navigate the process

2 Understand Affordable Housing Basics

3 How to Identify City of Santa Clara

Affordable Housing Opportunities that

work for you and your family

Key Program Terminology Part 1

# Program Term Definition

1 Household Profile

(Household I.D.) The most important information about a household that determines program eligibility and opportunity qualification This includes

Household Size (Member Profiles) and Total Household Income (Income Profiles) and your email address

Key Program Terminology Part 2

# Program Term Definition

4 Preference

(or Priority) Special designation given to applicants who meet certain program target criteria (e.g applicant works in the program location etc.)

Example: Preference 1: Work/live for a minimum of 6 months OR 2: Other

5 Ranking

Number The number assigned to ALL valid Opportunity Drawing Entrants who meet minimum requirements (INITIAL RANKING lottery/date and time stamp,

FINAL RANKING initial ranking plus the preferences)

6 Filtering The process for re-ordering a list of ranked Opportunity Drawing Entrants

based on their Preference/Priority and any applicable Preference/Priority hierarchy

Create an Account and Log In

You will complete 3 Important Steps at

www.myhouseKeys.com

How to Create a

Household Profile Application I.D Request an

Enter an Opportunity Drawing

(if ready)

**Click on “Continue

Registration Process” to go

on to the 7 Steps This step

This is the screen

you see after you

sign up, verify

Complete steps 1 through 7 of the Registration Process

You must

“Complete

Update Your Profiles and Enter Drawings

(only after you

complete all steps)

Update Your Household Profile

Update Your Household Member Profiles

ADD MEMBER(S)

EDIT MEMBER

INFO

Update Your Household Income

ADD INCOME

INFO

EDIT INCOME

INFO

Step 1 of 3 Complete:

Create a

Household Profile Application I.D Request an Opportunity Drawing Enter an

The Main Screen (“Home Page”) – what we call the “Household Dashboard”

Here is where you’ll see that button that we mentioned for “Program Center”

Once you Log into MyHouseKeys (www.myhousekeys.com) and enter the Program Center from the Home

Screen One of the Programs Listed in the Program Center is the “Municipality Affordable Ownership Program”

Scroll down to City of Santa Clara Rental Program and click on

Activity Log

Program Center Tabs

Programs Opportunities

(List of units) Opportunity Drawings Provider Project

Request Application I.D.

Like Opportunity

Enter Drawing

Note: In order to view Opportunities or Opportunity Drawings

you must Request and Receive an Application I.D.

Once you enter, DO

NOT Opt-Out

unless you no longer want the unit

ALL 3 Steps are Complete:

Household Profile Request Application I.D

I.D.

Enter Drawing (if ready)

All Applicants Must complete Applications, Forms and Exhibits before entering an Opportunity Drawing

If you have questions, please email us

programs@housekeys.org

Go HouseKeys Municipalities and go the Program Information Website

Go to housekeys.org

Visit Santa Clara’s Program Website

by Clicking Here

Program Website-BMR Rental Program

INFO PAGES Tab contains Rental Info Pages 6 Short Videos, Quiz, Doc Checklist, Application Forms, Exhibits, BMR Rental Guidelines, Initial Tasks AND Additional info on upcoming BMR Rental opportunities

www.housekeys7.com website

(lots and lots of resources)

-Rental Opportunities (Available Rental Opportunities)

-FAQ’s (Type in your Question)

-Downloads (Santa Clara County’s 2020 Maximum Income Limits, Registered Lender List, Applicant Road Map etc.)

-Info Pages (Read Me (How to use the Website), BMR Rental

Program Info Page)

Keep this in mind about the

BMR Rental Program

Rents are based on formulas derived from

Housing Agreements, City Ordinances and State

Income Limits ( Income Limits are provided Annually by the State of

California to ALL 58 counties)

Santa Clara County (as of 4/30/20)

Maximum Annual Gross Household Income Per Household Size Area

https://www.housekeys7.com/renter-info-page

Download, Print and

Complete to the best of your

ability:

1 Rental Application Part 1

2 Rental Application Part 2

3 Rental Application Part 3

4 Exhibits A-F

Note: If an item does not apply

do not complete it

Leverage the Standard Rental Program Document Checklist (guide you to build your FILE)

City of Santa Clara Rental Program Application Guide

Please Read Program

Guidelines before

entering an

Opportunity Drawing

City of Santa Clara BMR Rental Priority Levels

1 st Priority Level

(Lives and Works)

At least one qualifying household member who both lives within the City Limits of the City of

Santa Clara AND operates a business or is employed by a business or a public or quasi-public

agency in The City of Santa Clara for at least 6 months prior to the application date

2 nd Priority Level

(Lives)

At least one qualifying household member who lives within the City Limits of the City of

Santa Clara for at least 6 months prior to the application date

3 rd Priority Level

(Works)

At least one qualifying household member who operates a business or is employed by a

business or a public agency or quasi-public agency within the City Limits of the City of Santa

Clara for at least 6 months prior to the application date

4 th Priority Level

(All Others)

Any other qualified applicant household without regard to residency or employment

Notes: The qualifying household member must be the person or a dependent (a dependent is

qualifying applicant who is going on title who lives or works within the City limits of the City of Santa Clara It would not include children dependents) of a person whose name will appear

on title and who will use the unit as their primary residence

BMR Rental Program Minimum Requirements

Rental Score Recommendation: Approved, Approved with Conditions OR Denied

Meet Property Management Company Qualification Criteria

Sufficient Funds for Deposit(s) and Background Check Fees if applicable

Must Make at least 2x the Rent (in most cases)

All applicants and co-applicants must have a valid Photo Government issued I.D., Social Security Card or ITIN Number

*Documentation Requirements may vary by Property

City of Santa Clara BMR Rental

BMR Rental “Approved Applicant” Approx Timeline

Plan For an estimated 1 - 6 Months Process Time or longer

• Do not provide your current landlord a 30 days notice to vacate UNTIL you are notified

by HK or Property Manager (file

underwriter)

If you have questions, please email us

programs@housekeys.org

Go HouseKeys Municipalities and go the Program Information Website

Go to housekeys.org

Visit Santa Clara’s Program Website

by Clicking Here

Program Website-BMP Ownership Program

INFO PAGES Tab contains BMP Ownership Info Pages

8 Short Videos, Quiz, Doc Checklist, Application Forms, Exhibits, BMP Ownership Guidelines, Initial Tasks AND Additional info on upcoming BMP Ownership opportunities

www.housekeys7.com website

(lots and lots of resources)

-Home Buyer Opportunities (Available Ownership Opportunities)

-FAQ’s (Type in your Question)

-Downloads (Santa Clara County’s 2020 Maximum Income Limits, Registered Lender List, Applicant Road Map etc.)

-Info Pages (Read Me-How to use the Website, BMP Ownership

Program Info Page)

Note:

-You must Download, Print and Complete (to the best of your ability) ALL

Application Forms and Exhibits (if something does not apply do not complete it).

-Leverage the Standard and Addendum Home Buyer Checklists to Help you Build your File

-You do not need to provide HouseKeys a File Until If and When

we Request it via Email (per your Opportunity Drawing Final Ranking

Below Market Purchase Below Market Purchase (BMP)?

What is a Below Market Purchase Program (BMP)?

California cities establish Below Market Purchase (BMP) or Below Market Rate (BMR) programs

to facilitate the inclusionary housing requirements mandating housing developers to make a

percentage of housing units in new residential developments available to low- and

moderate-income households

Keep this in mind:

-Cities have different housing plans and programs

-Program requirements and restrictions will vary from city to city

City of Santa Clara Below Market Purchase

(BMP) Program Things to Remember

-The City negotiates with developers to create more Affordable

Housing units

-The negotiations determine an Affordable Sales Price (ASP)

based on affordability to a household having an income not

exceeding 120% of Area Median Income (AMI)

Keep this in mind about Affordable Ownership Housing

The BMP Purchase Price is based on the unit’s Total Number of Bedrooms and The State

Maximum Income Limits

(Income Limits are provided Annually by the State of California to ALL 58 counties)

BMP Ownership Program Minimum Requirements 1

Credit Score: 640 Minimum Median Score

(Experian, Equifax, Trans Union) lowest of the borrowers on record All adults living in the same dwelling unit as the Primary Applicant (“Applicant’s Household”) at time of application must individually and collectively qualify as a

First Time Home Buyer (not owned any property for the past 3 years)

Down Payment- 3% Minimum Down Payment OF THE BMP Purchase Price from

buyers own funds

+ Closing Costs (average is 3% of the purchase price) (Total= 6% of the purchase price from buyers own funds (down payment + closing cost)

All members of the Applicant’s household must provide acceptable documentation in Program application to verify that they are permanent legal residents of the U.S

BMP Ownership Program Minimum Requirements 2

Combined Household Income must not exceed the designated annual Gross

Household Area Median Income (AMI) by household size for the development and unit

Comply with the post-closing liquid and non-liquid asset limit (excluding retirement

assets) for income level

All applicants and co-applicants including listed dependents must be present in the

BMP Program Equity Share

-The owner and the City share the home’s equity after 5 years of home ownership – Owner earns 5% equity per year during the 20-year Equity Share Covenant

market value” increases as that was a figure that was determined at the point of purchase and not at the time of sale.

Years 1-5 of the BMP Program

If a BMP homeowner decides to sell their BMP UNIT, they

must sell at a Restricted Resale Price to an eligible

homebuyer as defined by the BMP Program Resale

Restriction that is signed between the City and Buyer(s)

The principal amount of the BMP Promissory Note is

forgiven, and another principal amount is established for the new owner Equity share is capped.

Years 6-20 of the BMP Program

The BMP Owners/Seller pays either a % of

equity share OR 7% interest on the loan; using

the lowest amount calculated for both items

The equity share OR interest is due to the City

in addition to the principal loan balance

After the 20 th Year of Ownership

The homeowner is required to pay back the outstanding

principal of the BMP Promissory Note

The homeowner can convert all the market-driven

appreciation in the home above its initial market value No

more equity share or interest due

BMP Program Restrictions and Option to Purchase will

expire and be removed after the City has been paid back the outstanding principal

Benefits of the BMP Program

Live in a home which would otherwise be unaffordable

▪ Sales Price & Financing Based on Income Limits for Santa Clara County known

as Area Median Incomes(AMI)

▪ Mortgage payments remain the same vs rents that increase

▪ Property taxes** calculated on Affordable Sales Price, not the Initial Market

What does Area Median Income (AMI) mean?

Median Income or “AMI”

is the midpoint of a county’s income

distribution.

Half earn more than the MEDIAN and Half earn

less than the MEDIAN

Meet the Garcia’s (Family of 5) How Does HouseKeys Calculate Your Income (to ensure that the Household is below the Maximum Income Limits) ?

Charles Garcia (9)

Santa Clara County

(Area Median Income (AMI) as determined by the State of California Housing and Community Development department

Meet the Garcia’s (Family of 5) How Do Lenders Calculate your Income (to ensure the Borrower(s) can afford the Financing)?

Jona Garcia (18)

$12,000

Averaging

$110,000

Jona’s Income will be

removed because he will not

be on the loan/title and was

16 years old twenty-four (24) months ago

We will use Fabian and Angela’ income only (they will both be on the Loan and on Title

Household Profile Overview

Program Eligibility vs Lender Qualification

ELIGIBILITY INCOME

$122,000

All Family Members Income

is Calculated

It is Used to make sure that the

Household is below the Maximum

Income Limits (per Santa Clara

County’s Income Limits)

QUALIFYING INCOME

$110,000

2-Year History Income

It is Used to make sure the Borrower(s) can afford the

Financing

If you have questions, please email us

programs@housekeys.org

City of Santa Clara BMP Priority Levels

(eligible applicants selected from the highest priority level will have the first opportunity to purchase the available BMP home)

1 st Priority Level

(Lives and Works)

At least one qualifying household member who both lives within the City Limits of the City of

Santa Clara AND operates a business or is employed by a business or a public or quasi-public

agency in The City of Santa Clara for at least 6 months prior to the application date

2 nd Priority Level

(Lives)

At least one qualifying household member who lives within the City Limits of the City of

Santa Clara for at least 6 months prior to the application date

3 rd Priority Level

(Works)

At least one qualifying household member who operates a business or is employed by a

business or a public agency or quasi-public agency within the City Limits of the City of Santa

Clara for at least 6 months prior to the application date

4 th Priority Level

(All Others)

Any other qualified applicant household without regard to residency or employment

Notes: The qualifying household member must be the person or a dependent (a dependent is

qualifying applicant who is going on title who lives or works within the City limits of the City of Santa Clara It would not include children dependents) of a person whose name will appear

on title and who will use the unit as their primary residence