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HomeMy WebLinkAbout2021-12-02; Affordable Housing Resale Program Update: November 2021 (Districts - 2 & 3); Barberio, GaryTo the members of the: ,.,.Cjl"Tl COUNCIL Date ~CA ✓ cc _L CM V ACM .JL DCM (3).l._ Dec. 2, 2021 Council Memorandum To: Honorable Mayor Hall and Members of the City Council From: Gary Barberio, Deputy City Manager, Community Services Mandy Mills, Director of Housing and Homeless Services Nancy Melander, Program Manager Via: Geoff Patnoe, Assistant City Manager ~ {city of Carlsbad Memo ID #2021220 Re: Affordable Housing Resale Program Update: November 2021 (Districts -2 & 3) This memorandum provides an update regarding the Affordable Housing Resale Program for the sale of city-owned residential units to low income homebuyers. Background The City of Carlsbad's Affordable Housing Resale Program (program) is designed to assist qualified lower-income households to purchase city-owned residential property at an affordable price. Under the program, the city purchases affordable housing units that are at risk of converting to market-rate with the intent of extending the affordability restriction on the property and reselling the unit to qualified lower-income families. This helps the city preserve, extend and enhance the existing affordable housing stock in Carlsbad. To date, the city has acquired and holds title to a total of ten units. The City Council authorized the latest purchase of the eleventh unit in October 2021. Discussion On Dec. 8, 2020, the City Council approved the Affordable Housing Resale Program Guidelines (guidelines) which provides background information and a program overview to describe the purpose and basic features of the program. The guidelines provide details about buyer eligibility requirements, notification and marketing of units to be offered for sale; the application submittal process, screening, sorting and verification of applications; and creation of a waiting list should there be more qualified buyers than available units, and other program details. Baseline eligibility criteria includes a requirement that applicants reside in San Diego County and that total household income is limited to no more than 80% of the San Diego County area median income. Priority consideration will be given to qualified applicants whose total household income is less than or equal to 50% of area median income and applicants who currently have a high housing cost burden, which is 50% or more of household income. Qualified applicants will be selected first from these priority categories and in the order that complete applications are accepted. Community Services Branch Housing & Homeless Services Department 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t Council Memo -Affordable Housing Resale Program Update: November 2021 (Districts - 2 & 3) Dec. 2, 2021 Page 2 Staff began marketing, outreaching and distributing application materials to initiate and promote the city's Affordable Housing Resale Program in November 2021. A 15-day public notice prior to the application period opening ran in The Coast News on Nov. 4, 2021, and concluded on Nov. 18, 2021. The application period began on Nov. 19, 2021, and will remain open for a period of 60-days concluding on Jan. 17, 2022. Additional outreach methods include mailers to Section 8 clients and tenants of the affordable for rent developments in Carlsbad, email notices to local partner agencies and residents that have previously reached out inquiring about the program, press releases, posts to the city's social media pages, announcements in San Diego's largest weekly Hispanic publication El Latino and the largest African-American publication The Voice and Viewpoint. Interest in the program is very high and staff have received more applications than the number of units that are available under this program. Since the initial announcement of the program launching the city has received approximately 80 calls a day and received over 3,500 emails inquiring about the program. To date the city has received approximately 400 applications since the opening day of the application period. Next Steps At the conclusion of the application period, based on the criteria, all verified complete applications will be placed on an eligibility list in the order that applications were accepted. Applicants will be selected first from the list of households who meet a gross annual household income of 50% or less, adjusted for family size, and who meet the current housing cost burden of 50% of gross household income or greater. If units are still available after the first selection has been completed, then applicants with a gross annual household income that is 50% or less, adjusted for family size, or who meet the current housing cost burden of 50% of gross household income, or greater, will be selected. Qualified applicants who were not afforded the opportunity to purchase a currently available unit will be placed on a waiting list. Applicants on the waiting list will be considered for the next opportunity to purchase a restricted affordable housing ownership unit as additional units become available. Attachment: A. Affordable Housing Resale Program Guidelines B. Public Notice C. Program Flyer cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Kristina Ray, Communication and Engagement Director (cityof Carlsbad CITY OF CARLSBAD Attachment A Approved by City Council, Dec. 8, 2020 Resolution No 2020-234 AFFORDABLE HOUSING RESALE PROGRAM GUIDELINES PROGRAM BACKGROUND In 2018, the Carlsbad City Council authorized staff to exercise the city's option to purchase restricted affordable housing ownership units when the original lower-income buyer provided notice of intent to sell the unit during the 30-year regulatory/loan term. These units were originally constructed by a private residential developer in Carlsbad to satisfy the requirements of the city's lnclusionary Housing Ordinance and initially sold to a qualified lower-income buyer at an affordable restricted price. Because the units are substantially subsidized to a below market price affordable to lower-income households, the city holds a "silent" second loan on the property that equals the value of the price subsidy (the difference between the fair market value of the unit and the restricted price for a lower income household). As part of the loan agreement between the city and the homeowner, the city has an option to purchase the unit at the time they are made available for sale by the homeowner; this option may be exercised at any time of sale during the 30-year term of the loan and the city pays the restricted price for the unit, calculated at the time of sale. The City Council has subsequently approved use of federal Community Development Block Grant (CDBG) funds to purchase these units with the intent of preserving and extending the long-term affordability of the units. Because federal and potentially local housing funds have and will be used to purchase these units, the city intends fo enhance the public benefit of the program through these resale guidelines by providing affordable homeownership opportunities to lower-income households and potentially providing a larger secondary loan if determined to be needed by the city to allow for the purchase by a qualifying buyer who meets the city's priorities. PROGRAM OVERVIEW The City of Carlsbad Affordable Housing Resale Program is a homeownership program specifically designed to assist qualified lower-income households to purchase a city-owned residential property at an affordable price; these affordable units (under city ownership) were purchased from the original low-income homeowner at the time the owner decided to sell the unit and provided required notice to the city of the owner's intent to sell the unit. The price the qualified buyer will pay for the unit will be set by the city to ensure that total housing costs for the qualified buyer will not exceed 30 percent of the gross household income of the buyer. Pricing will be based on incomes ranging from 50 to 80 percent of the San Diego Area Median Income (AMI). The difference between the fair market value of the property at time of sale to the qualified buyer and the actual price paid by the qualified buyer will continue to be Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 1 structured as a secondary loan documented in a promissory note executed by the new homeowner and with the city as the beneficiary. The loan will become immediately due and payable to the City of Carlsbad if the homeowner fails to comply with the terms of the loan and the requirements set forth within these resale program guidelines. The unit may be sold by the new owner but may only be sold to an eligible buyer at a price that is affordable to the designated income level set forth within the 30-year loan agreement. The city will retain an option to repurchase the unit again at a restricted price throughout the term of the agreement when the owner decides to sell at a later date. PROGRAM REQUIREMENTS AND BUYER ELIGIBILITY The city has established basic threshold eligibility criteria for participation in this affordable housing homebuyer program. A. The buyer must currently be living in San Diego County. B. The buyer has not purchased a unit under any other First-Time Homebuyer or Affordable For-Sale Housing Program administered by the City of Carlsbad in the past seven years. C. The buyer's income may not exceed the maximum income limit for the resale program which shall be 80 percent of the San Diego County Area Median Income (AMI) as established by the US Department of Housing & Urban Development and as published by the State Department of Housir:ig and Community Development and in effect at the time of the buyer's application, adjusted for household size. D. The buyer must have a minimum income which allows for the total of all housing costs to not exceed 30 percent of the total gross household income for the buyer. The minimum income shall be determined on a case-by-case basis taking into consideration the size and market value of the unit, the homeowner association fees (if any) and other related housing costs (including a utility allowance) at the time of application to purchase one of the units. E. At time of application for a particular unit, the buyer's household size shall meet the following minimum and maximum household size : Unit Size Household Size Minimum Maximum 1 bedroom 1 3 2 bedrooms 2 5 3 bedrooms 3 7 4 bedrooms 4 9 Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 2 This requirement is intended to promote efficient use of available affordable housing and to prevent overcrowding at the time of sale; however, this does not limit future growth in the household size after the purchase. The buyer must execute legal documents that prohibit the unit or any portion thereof from being used as a short or long-term rental, and require the owner to use the unit as their primary residence for no less than 10 months out of each calendar year. F. Co-borrowers or co-signers who will not occupy the property as their primary residence are not permitted. A non-borrowing spouse is considered a co- borrower if they will occupy the property, even if they will not be on the loan for the first mortgage. Student dependents who live outside San Diego County at or near their college will not be counted as a household member. G. For the purpose of determining household size, any person claimed as a household member must have lived with the borrower for a minimum of twelve consecutive months immediately prior to purchase and must provide evidence they will live in the subject property after purchase. In addition, any non- borrowing person listed as having no income on the application must be indicated as a dependent on the applicant's tax return for the previous year to be considered a household member. Appendix A provides a ·quick review summary of eligibility requirements, documentation requirements and clarifications of the standards. NOTIFICATION OF AFFORDABLE UNIT FOR SALE BY THE CITY In an effort to be fair and ensure those that meet the priority criteria set forth by the city have an opportunity to purchase one of the city-owned affordable units, the city will open an application period when there are units available for purchase. The application period will remain open for a period of 60 days, or longer if needed to receive enough qualified applications. A. Outreach Strategies o The city will utilize print media and electronic media to inform the public of affordable for-sale housing opportunities. o The city will target outreach to minority and special needs populations that may not otherwise have the opportunity to access affordable housing opportunities. o The city will communicate the status of affordable housing availability to a variety of agencies including social service agencies, Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 3 Is. nonprofit agencies, and special interest groups in the community, advising them of eligibility factors and guidelines so that they can make appropriate referrals. B. Public Noticing and Application Period o The city will provide notice in local newspapers and the city website when affordable housing units will be offered for sale. The notices will announce when the application period will open and provide information on how to apply to purchase an affordable unit. Notices will be sent 15 days prior to the opening date of the application period. o Applications for the purchase of an affordable unit must be filed with the City of Carlsbad, Housing Services Division by the date and time specified in the public notice. Applications will be date and time stamped in the order in which they are received. C. Marketing. o Informational materials for applicants will include a general description such as the locations and number of affordable units, number of bedrooms, number of parking/garage spaces per unit, amenities, pricing, etc. o Marketing materials will include photos of the exterior and interiors of available units. APPLICATION PROCESS A. Once the application period is opened by the city, an interested buyer will be able to download the application from the city's website (www.carlsbadca.gov/housing), complete it, provide the required back-up documentation and then return the original, signed application and supporting documents to: City of Carlsbad 1200 Carlsbad Village Drive, Carlsbad, CA 92008 Attn: Homebuyer Program, Housing Services. o Application forms will be mailed to interested buyers upon request. B. The potential buyer shall be required to complete both a program and uniform residential loan application to purchase the unit and must provide all pertinent documentation requested by the City of Carlsbad to determine eligibility as well as to determine sorting priority (see Section 6 below). Applications will only be accepted if all documentation is provided at the time the application is submitted to the city. Incomplete applications will be returned to the potential buyer with a list of required documentation to be submitted to the city; applications may not be resubmitted until all required documentation is available and included with the completed application. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 4 Please note that all applications must be signed and dated and may be noted on credit reports as an application for a loan. C. Submission of an incomplete application will be returned to the applicant, and the application will not be considered for the purchase of an existing unit until it is accepted as complete. A resubmitted application will be date and time stamped when it is received. If the resubmitted application is accepted as complete, the resubmittal date and time will be used for sorting as described in Section 6 below. It is important to review the application closely and ensure that the application is complete, signed and dated, and that all pertinent documents are included upon initial submission. D. Persons with disabilities are entitled to request a reasonable accommodation in rules, policies, practices, or services, or to request a reasonable modification in the application process and purchasing process, when such accommodations or modifications may be necessary to afford persons with disabilities an equal opportunity to housing. APPLICATION SORTING At the conclusion of the application period, based on the following criteria, all verified complete applications will be placed in one of three eligibility lists, and in the order that applications were accepted as complete: List A List B List C Applicant household has Applicant household has All other eligible applicants BOTH EITHER Gross annual household Gross annual household income that is 50 percent of income that is 50 percent of Area Median Income or less, Area Median Income or less, adjusted for household size adjusted for household size AND OR Current housing cost burden Current housing cost burden of 50 percent of gross of 50 percent of gross household income or greater household income or greater Applicants will be selected first from List A in the order in which applications were accepted as complete. If units are still available after selection of applicants from List A has been completed, then applicants from List B will be selected in the order in which applications were accepted as complete. If units are still available after selection of applicants from List B has been completed, then applicants from List C will be selected in the order in which applications were accepted as complete. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 5 Once all units are purchased by applicants on the eligibility list, remaining eligible applicants will be kept on a waiting list as provided in Section 7 below. If units still remain after all applicants from the eligibility lists have been considered and provided an opportunity to purchase a unit, then any remaining units will be sold to an eligible purchaser on a first-come, first-served basis. WAITING LIST AND ASSIGNMENT OF OPTION TO PURCHASE If there are more qualifying buyers than units available at the time of application, the applicant will be placed on a waiting list (with the same rank order) following the completed sale of the last affordable unit until the next application period is opened by the city. The applicant will then be considered for the opportunity to purchase a restricted affordable housing unit at that time. As described in Section 1, in many cases the city has the option to purchase an existing affordable unit when the homeowner chooses to sell. The city also has the right to assign its option to an eligible purchaser rather than purchasing the unit outright and then re-selling it. Accordingly, whenever an owner of an affordable unit notifies the city of their intent to sell, the city may assign its purchase option to an eligible buyer on the waiting list created under this program . Note that in these cases, the qualifying household income limits and affordable unit sales prices will be determined by the terms of the original resale restriction agreement with the owner, generally set at 80 percent AMI and adjusted for household size. Therefore, the waiting list will be screened for applicants meeting the qualifying income requirements, who will then be selected in their ranked order. Applicants should notify the city of any changes in email or mailing address to ensure that the city has the most current contact information for communications regarding unit availability or any program changes. Applicants on the waiting list will be contacted to update their application at the time additional units are made available for purchase. Is. INCOME QUALIFYING FOR PROGRAM ELIGIBILITY The household's gross annual income must not exceed the income restriction set forth within these program guidelines and as noted above (maximum 80 percent of AMI for San Diego County, adjusted for household size). Gross income will be calculated according to these guidelines. The combined gross annual income of all members of the household age 18 and older who are currently living together and have lived together for 12 months or more and will be living in the property must be included in the determination of income. The household's income must be projected as an annual income. It will be assumed that today's circumstances will continue for the next 12 months, unless there is verifiable evidence to the contrary. All households must be income-qualified no more than 60 days prior to the purchase closing date. For the purpose of determining income eligibility, all income is included even if there is less than a two-year work history. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 6 HOUSING DEBT-TO-INCOME RATIO (HOUSING AFFORDABILITY) The buyer/borrower's monthly housing costs/debt-including principal, interest, property taxes, property insurance, and if applicable, private mortgage insurance and homeowners association dues-shall not exceed 30 percent of the buyer/borrower's gross monthly income; this is known as the housing debt-to-income ratio. Please note that the income of a non-borrowing spouse is included when calculating this ratio ifs/he has a work history of two or more years. All household monthly debt (including home loan, car loans, credit card debt, etc.} shall not exceed 50 percent of the buyer household's gross monthly income. I 10. INCOME FOR DEBT-TO-INCOME CALCULATIONS Program guidelines require the combined income of all persons on title, including a non-borrowing spouse (if applicable}, to be included in the calculation of income. The household's actual /average income will be calculated for underwriting purposes. It will be assumed that today's circumstances will continue for the next 12 months, unless there is verifiable evidence to the contrary. Applicants, co-applicants and non-borrowing spouses must have a minimum of a two- year continuous work history. I 11. DOWN PAYMENT REQUIREMENTS The following down payment requirements shall apply to this affordable housing resale program with the intent of requiring minimal investment by the buyer to extend the opportunity for homeownership to a larger population of lower income households. But, there is also a cap to the cash investment to ensure maximum public benefit. An all-cash transaction will not be permitted, except where exceptional circumstances demonstrate that is necessary to serve a special population such as very-low or extremely low-income seniors or the disabled. B. Minimum required down payment is three percent of the purchase price. o The borrower's down payment must be from their personal funds or a gift from an immediate family member. Immediate family members include the following people: father, mother, brother, sister, grandparent, uncle, aunt or child. C. Maximum down payment: 20 percent of the purchase price. o An exception to the maximum down payment guideline may be made for buyers whose sole source of income is derived from Social Security, Social Security Disability or Veterans Disability, in which case a down payment sufficient to bring their housing debt-to-income ratio to no less than 30 percent may be accepted. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 7 o As the program is designed for lower-income buyers with limited assets but sufficient income to support a first mortgage payment, large down payments from family members with significant assets to assist the buyers qualify for the mortgage loan will not be considered. D. All-cash transactions are not permitted. An exception may be made for buyers whose sole source of income is derived from Social Security, Social Security Disability or Veterans Disability, and the proposed payment for property taxes, homeowners association (HOA) dues and homeowners insurance is equal to or greater than 30 percent of their income. The buyer must meet all eligibility requirements, have acceptable credit and have sufficient income to support the HOA, property taxes and monthly debt obligations. I 12. ASSET LIMITATION At the time eligibility is determined, the liquid assets of all household members, including children, must not exceed an amount equal to the maximum income limit set for the particular affordable unit, as adjusted for household size. A. The term "liquid assets" refers to cash and assets, which are readily convertible to cash within a reasonable period, including but not limited to savings and checking accounts, certificates of deposit of any term, marketable securities, money market and similar accounts, mutual fund shares, and insurance policy cash values. B. The term "liquid assets" shall not include retirement account funds if those accounts are not accessible to the buyer. C. An exception may be made for buyers whose sole source of income is derived from Social Security, Social Security Disability or Veterans Disability and a down payment of more than 20 percent is required to reduce their housing debt-to- income ratio to no more than 30 percent. In this case, the borrower's assets must not exceed an amount equal to the maximum income limit (50 percent of San Diego County Area Median Income), as adjusted for household size after the maximum allowable down payment contribution. D. The minimum household reserve requirement is $1,000. The reserves must be from liquid assets. I 13. CREDIT GUIDELINES A. Minimum credit score: 640 B. No foreclosure or bankruptcy (Chapter 7 or 13) within the last seven years C. A letter of explanation is required for all derogatory reporting dated within two Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 8 years prior to the close of escrow D. All collections, charge-offs and judgments must be paid or settled with the creditor through escrow or prior to the close of escrow. Back-up documentation showing the account has been paid is required if paid outside of escrow E. A credit report for a non-borrowing spouse is required. All debt of the non- borrowing spouse will be used in the debt-to-income ratio calculations I 14. FIRST TRUST DEED LOAN The borrower shall secure a 30-year fixed rate loan from a private lender. No adjustable rate loans or other financing programs shall be permitted. Conventional, Federal Housing Administration (FHA) and Veterans Administration (VA) financing are acceptable. First trust deed lenders are required to collect and manage an impound account for payment of taxes, assessments and property insurance for the term of the first mortgage. I 1s. HOMEBUYER EDUCATION CLASS All applicants, co-applicants and non-borrowing spouses, whether on title or not, are required to attend a homebuyer education class given by a City of Carlsbad-approved Homebuyer Education Provider. I 16. OCCUPANCY REQUIREMENTS As long as the borrower(s) owns the affordable unit, the borrower(s) must reside in the unit as their principal place of residence. The borrower(s) shall not rent or lease all or any part of the restricted unit at any time. The unit shall be occupied full time (at least 10 months out of the year) and may not be used at any time as a vacation home or short- term vacation rental, or allow any other rental transaction or similar use. Borrower(s) must comply with annual occupancy certification requirements and submit the certification to the city upon request. I 11. AFFORDABLE RESALE RESTRICTIONS On the date of the sale of each Affordable Housing Resale Housing Program property, the city will record resale restrictions on the property. The resale restrictions will include income restrictions for new buyers, future sales price restrictions, initial occupancy restrictions, and length of restriction {30 years). Note that future buyer income restrictions and future sales price limits shall apply throughout the entire 30-year affordability term. The resale restrictions are included in the following documents: Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 9 A. Declaration of Restrictive Covenants Regarding Restrictions on Transfer of Property, Occupancy Restrictions, Refinancing Restrictions, and Option to Purchase B. Deed of Trust C. Promissory Note D. Notice of Affordability Restrictions E. Buyer's Disclosure Statement I 1s. CITY'S CONTINUING ROLE The City of Carlsbad is the Affordable Housing Homeownership Program administrator and secondary lender. As the program administrator, the city is responsible for oversight and compliance of the affordable resale restrictions. The city's responsibilities include but are not limited to: A. Managing the Affordable Housing Homeownership Program interest and waiting list B. Calculating the sales price for affordable for-sale units at the time of the first sale and foreach subsequent sale C. Ensuring that upon resale, the property is in a "move-in" ready condition D. Verifying eligibility of buyers that participate in the program E. Monitoring owner-occupancy compliance The city may use third parties to assist in administering the program. The City of Carlsbad is a lien holder on each unit and has no further ownership interest in the properties after the initial sale of the unit. I 19. REFINANCE The Deed of Trust and Promissory Note to the city may be subordinated to the refinancing of the existing first trust deed loan in order to lower the interest rate and subsequent monthly payment only. Refinancing that increases the current principal balance (except for reasonable costs of refinance) or increases the monthly mortgage payment will not be permitted. Mortgage loans or equity lines of credit junior in lien priority to the city deed of trust are not permitted. No reverse mortgages will be approved for the affordable units. All refinances are subject to prior written approval by the city. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 10 I 20. PROPERTY CONDITION Units offered under this program will be sold by the City "as is", which the City has determined is in "move in condition". The city will make no repairs and is not responsible for any defects in the construction of the units or any repairs or replacements that may be required for the units. All buyers are encouraged to engage the services of a home inspector to provide for a full home inspection prior to close of escrow on the purchase transaction. The potential buyer will be permitted to cancel escrow if there are any conditions in the unit which are unacceptable to the buyer and with the understanding that the city will make no repairs or correct any identified defects. At the time the new owner decides to resell the purchased affordable unit, the unit shall be restored to "move in condition" prior to providing the Notice of Intent to Sell to the City of Carlsbad. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 11 These guidelines are provided as a basis for the determination of program eligibility and underwriting of Affordable Housing Resale Program loans. The City of Carlsbad at its sole and reasonable discretion, and with the City Manager's approval, may make exceptions to any guideline set forth herein, if not inconsistent with City Council Policy No. 73. Please be aware that reporting fraudulent, untrue and/or incomplete documentation is a serious program violation. This could lead to the termination of your participation in the Affordable Housing Resale Program. It is also important to acknowledge that Title 18, Section 1001 of the United States Code, states that a person is guilty of a felony for knowingly and willingly making false or fraudulent statements to any department or agency of the United States. It is very important to provide complete and accurate information as requested by the City of Carlsbad. tat EQUAL HOUSING OPPORTUNITY The City of Carlsbad is committed to affirmatively furthering fair housing by promoting fair and equal housing opportunities for individuals living in the City of Carlsbad and San Diego County. This commitment extends to all housing programs managed or owned by the city and to all grant-funded programs provided by the city. It is the policy of the city to provide services without regard to race, color, religion, national origin, ancestry, age, gender, source of income, familial status or physical/mental disability. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 12 Appendix A Summary of Applicant Eligibility and related standards and acceptable documentation: Applicant Eligibility Standards Co-Signers Co-signers who will not occupy the property are prohibited. Documentation ~ If married: spouse must sign city forms, disclosures and promissory note, regardless of vesting. ~ If divorced: copy of final divorce decree and judgment from the court. • Death certificate for deceased spouse . • Non-U.S. Citizen: copy of permanent alien registration card (green card). All borrowers must be a U.S. Citizen or Permanent Resident. • Copy of driver's license or other government-issued photo ID. Income (Required for ALL household Standards members over the age of 18) Alimony and Child Support Copy of divorce decree and/or child support agreement, with six months proof of payment. To be used for eligibility and underwriting. Support must continue for 12 months or more. Disability Income Copy of award letter from payer. Social Security Income Copy of award letter from payer. Pension Income Copy of award letter or W-2 from payer. Workers Compensation Benefits Copy of award letter from payer. Unemployment Compensation Copy of award letter from payer. Financial Aid (student loans, etc.) Copy of award letter from payer. Interest or Dividend Income Two years 1040s, copies of current statements verifying buyer's assets. Tax Returns & W-2s Three years of signed tax returns. Two years W- 2s for all employers. Salaried/ Wage Earners Most recent pay stubs covering a minimum ·of two month's income. Pay stubs to reflect year- to date earnings and deductions. If there are multiple employers, all pay stubs showing year- to-date earnings. Part-Time Employment Most recent pay stubs covering a minimum of two months. Pay stubs to reflect year-to-date earnings and deductions. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 13 Bonus and Overtime Income Must be documented on pay stub. Will be used if there is a two-year history and likelihood of continuation. Self-Employed Two years of tax returns with schedule C and a year-to-date signed profit and loss statement. Must have a minimum two-year history of self-employed income. Commission Only Two years of tax returns with schedule C and a year-to-date signed and dated profit and loss statement or most current pay stubs covering a minimum of one month. Must have a minimum two-year history of commission income. Assets (Required for ALL households Standards members over age 18) Checking and Savings Accounts Three months most recent bank statements for ALL accounts. Stocks and Bonds Must be verified by brokerage firm or similar company and statement of account. Saving Bonds Copy of bond. 401K or Retirement Accounts Copy of account statement and letter from employer verifying that borrower does not have access to the funds, if applicable. Liabilities Standards Alimony/Child Support Included as debt if more than six months remaining. Copy of divorce decree. Installment Loans Included as debt if more than six months remaining. Revolving Accounts Payment stated on credit report or application is used, whichever is higher. If payment is not stated, the higher of $10 or 5% of the outstanding balance owed is used. Student Loan If loan is deferred for one year or more, it is not included as a monthly obligation. If less than a year deferment or borrower making payments, it is included as a debt. Credit History Standards Credit Reports Must be a "three repository merged" credit report. Any items not belonging to borrower must be removed from the report. Credit report cannot be dated more than 60 days from underwriting. Minimum credit score: 640. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 14 Collections All unpaid collections must be paid. Need letter of explanation from borrower. Derogatory Credit Letter of explanation is required for all derogatory credit. No accounts can be past due at the time of loan application. Bankruptcy No bankruptcy (Chapter 7 or 13) within the last seven years. Short Sales/ Foreclosures No short sale or foreclosure within the last seven years. Judgments, Garnishments and No outstanding judgments, garnishments or Involuntary Liens involuntary liens are allowed. Inquiries Any inquiries within the last 90 days must be explained. No or Limited Credit History Alternative credit history is required. Utility payment records (at least three months most recent statements), rental payments (past 12 months) or other personal loans (past 12 months). Need three forms of credit history, at least one must be a rental history. Community Development Housing Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 t December 2020 15 Attachment B PUBLIC NOTICE: APPLICATION PERIOD OPENING FOR AFFORDABLE HOUSING FOR SALE NOTICE IS HEREBY GIVEN, that the City of Carlsbad will be accepting applications for the sale of city owned affordable housing for a period of 60 days beginning Nov. 19, 2021 and ending Jan.17, 2022 at 5 p.m. Applications will be reviewed in the order they are received. The city intends to sell the units to low-income eligible buyers whose household gross annual income is at or below San Diego's Area Median Income restrictions. Mulberry at Bressi Ranch is a 100-unit development located off Gateway Road and Village Green Drive. The first available condominiums for sale are 2 bedroom/1 bath units with a one-car garage, one uncovered parking space and access to the community pool and clubhouse. The City of Carlsbad Affordable Housing Resale Program is a homeownership program specifically designed to assist qualified lower-income households to purchase a city-owned residential property at an affordable price. These affordable units were purchased from a low-income homeowner at the time the owner decided to sell the unit. The city has established basic threshold eligibility criteria for participation in this affordable homebuyer program, participants are strongly encouraged to review the criteria and program guidelines on the city's website at www .ca rlsbadca .gov /housing. In an effort to be fair and ensure those who meet the priority criteria set forth by the city have an opportunity to apply to the program, the city will open an application period when the units are available for purchase. The application period will remain open for a period of 60 days, or longer if needed to receive enough qualified applications. Applications will be reviewed in the order they are received. This notice serves to provide a 15-day notice prior to the opening date of the application period. Applications for the purchase of an affordable unit must be filed with the City of Carlsbad Housing & Homeless Services Department by the date and time specified in this public notice. Applications will be date and time stamped in the order in which they are received. Submission of an incomplete application will be returned to the applicant, and the application will not be considered for the purchase until it is accepted as co'mplete. Interested buyers can download the application online from the city's website starting Nov. 19, 2021 at www.carlsbadca.gov/housing, and must submit completed applications via mail or email by Jan. 17, 2022 at 5 p.m. to: City of Carlsbad 1200 Carlsbad Village Drive, Carlsbad, CA 92008 Attention: Homebuyer Program, Housing & Homeless Services Department affordablehousing@carslsbadca.gov If you have questions or wish for further information, please contact KC Clifford, the city's authorized Affordable Housing Realtor by phone at 619-866-5304 by email at affordablehousing@carlsbadca.gov or by mail to the city address listed above. [Type here] Attachment B Persons with a disability may request an application in appropriate formats as required by the American with Disabilities Act of 1990 by contacting the Housing & Homeless Services Department at 760-421-2812 (voice), 711 (free relay service for TTY users), 760-720-2037 (fax) or affordablehousing@carlsbadca.gov. FOR SALE 2 Bedroom/1 Bath, 879 square feet Mulberry at Bress i Ranch A limited number of affordable condominiums are available for purchase by qualified low-income buyers through the City of Carlsbad's Affordable Housing Resale Program. 0 KC Clifford Affordable Housing Realtor affordablehousing@carlsbadca.gov 619-866-5304 www.carlsbadca.gov/housing Attachment C Application deadline Jan.17,2022 Applications will be reviewed in the order they are received. Eligibility • Shall not exceed the gross maximum yearly income shown on chart below • Currently live in San Diego County • No previous purchase in past 7 years under other City of Carlsbad first-time homebuyer or affordable for-sale housing program • Additional eligibility requirements apply. Visit www.carlsbadca.gov/housing for fl.ill details. Family Size 2 3 4 5 Very Low Income Gross Maximum Yearly Income $42,450 $48,500 $54,550 $60,600 $65,450 ~ *Affordable Housing Program sponsored by The City of Carlsbad. l=.f Restrictions apply. Sales: Ocean Mortgage Realty (DRE#0l 238502). :,,,ci,., Preferred Lender: Cross Country Mortgage, LLC (NMLS #40397 / DRE #01197403). All square footage, measurements, elevations, and options are approximate and may not be included in all homes. Broker cooperation not available with this Affordable Housing Program. l The City of Carlsbad and its contractors are.committed to affirmatively C). furthering fair housing by promoting fair and equal housing opportunities for individuals living in the City of Carlsbad and San Diego County. This commitment extends to all housing programs managed or owned by the city and to all grant-funded programs provided by the city. It is the policy of the city to provide services without regard to race, color, religion, national origin, ancestry, age, gender, source of income, familial status or physical disability. EN VENTA 2 habitaciones/1 bano, 879 pies cuadrados Mulberry en Bressi Ranch Un numero limitado de condominios asequibles en la comunidad Mulberry en Bressi Ranch estan disponibles para la compra por compradores calificados de bajos ingresos a traves del programa de reventa de viviendas asequibles de la ciudad de Carlsbad. 0 KC Clifford Agente de Vivienda Asequible affordablehousing@carlsbadca.gov 619-866-5304 www.carlsbadca.gov/housing Fecha limite de solicitud 17 de enero de 2022 Las solicitudes se procesaran en el orden en que se reciban. Elegibilidad No debera exceder el ingreso anual maximo bruto que se muestra en la tabla a continuaci6n. • Actualmente vive en el condado de San Diego Ninguna compra previa en los ultimos 7 anos bajo otro programa de vivienda asequible o para compradores de vivienda por primera vez de la Ciudad de Carlsbad. Se aplican requisitos de exigibilidad adicionales. Visite www.carlsbadca.gov/housing para mas detalles. Miembros Maximos ingresos defamilia anuales netos 1 $42,450 2 $~8,500 3 $54,550 4 $60,600 5 $65,450 ~ *Programa de vivienda asequible patrocinado por la ciudad de Carlsbad. 1:J Se aplican restricciones. Ventas: Ocean Mortgage Realty {DRE# 01238502). wi~-:-;, Prestamista preferido: Cross Country Mortgage, LLC (NMLS # 40397/DRE 6. # 01197403). Todos los pies cuadrados, las medidas, las elevaciones y las opciones son aproximadas yes posible que no se incluyan en todas las casas. La cooperaci6n de corredores no esta disponible con este Programa de Vivienda Asequible. La ciudad de Carlsbad y sus contratistas estan comprometidos a promover afirmativamente la vivienda justa mediante la promoci6n de oportunidades de vivienda justa e igualitaria para las personas que viven en la ciudad de Carlsbad y el condado de San Diego. Este compromise se extiende a todos los programas de vivienda administrados o propiedad de la ciudad ya todos los programas financiados por subvenciones proporcionados por la ciudad. Es politica de la ciudad brindar servicios sin distinci6n de raza, color, religion, origen nacional, ascendencia, edad, genera, fuente de ingresos, estado familiar o discapacidad ffsica.