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
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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
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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,
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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.
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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.
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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.
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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.
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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
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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:
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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.
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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.
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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.
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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.
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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.