What to do if you are a Buyer
 
The Housing Authority of the City of San Buenaventura has a list of pre-qualified buyers who have expressed interest in purchasing affordable housing. The interested buyers may meet the income requirements necessary to purchase your home.  Please be aware this is not a guarantee of income verification or that the interested buyer can qualify for a First Trust Deed Mortgage.  If you are interested in having your name placed on the interested buyers list, read the requirements below and complete the Interested Affordable Homebuyers Intake Form.  Return the completed form to the Housing Authority of the City of San Buenaventura, 995 Riverside Street, Ventura, CA 93001.

To receive a list of pre-qualified buyers, please contact Susan Everett, Affordable Housing Program Manager at (805)648-5008 Ext. 2257.

There are certain requirements you need to meet if you are interested in purchasing an income-restricted unit.

1. Your income must not exceed the maximum allowable household income limit (please review the “What Income Verification is Required from the Buyer” below). Maximum Allowable Household Income (see below)
2. Within 5 days of opening escrow the HACSB should be contacted by either the buyer or the listing agent by submitting the completed signed original Affordable Housing Program application along with the requested documentation.
3. Within 10 days of opening escrow the buyer needs to submit all required income documentation to the City.

For some developments there is a requirement that you be a first time homebuyer. You cannot have had an ownership interest in a principal residence in the preceding three (3) years to be considered a first time homebuyer.

What Income Verification is Required from the Buyer?

The buyer is required to submit a complete signed original Affordable Housing Program application and the requested documentation
Copies of the following are required to be submitted as verification of income for all adult occupants of the buyer’s household. Any person in the household over the age of 18 who earns income must be included in the calculation of maximum household income. Any person whose income is used to qualify for the purchase of the property must have a vested interest in the property income is calculated using gross income:

1. Most recent pay stubs for all adult wage earners of the household, regardless of who will be showing on title.
2. Previous 3 years of W-2’s and federal income tax returns, including all corresponding Schedules and forms.  The income tax and W-2 documents must be submitted to the HACSB within 10 days of opening escrow.
3. Current statements for all bank accounts including checking and savings.
4. Current statements for all household assets.
   
   
   'Household Assets' means the value of a household's savings and equity in stocks, bonds, real property (minus debt), or other forms of capital investment. 'Assets' does not include items that are reasonably necessary for the personal use of the household, such as personal effects, furniture, appliances, automobiles, and real or personal property used in a business or undertaking which is a primary source of livelihood for such household. Restricted accounts, such as IRA's, 401(k)'s, SEPs and pension funds will not be used to calculate total amount of assets, but will be used to calculate household income, if a household is currently drawing down from such account(s).


5. Lenders Underwriting Analysis (HUD form 1008 and 1003). Please note that there are certain loan products that will not be accepted in conjunction with the sale of its affordable units. These loan products include Stated Income, First Trust Deeds with a Balloon Payment, Interest Only, Negative Amortization, and CalHFA.

Meeting the Compliance Certificate Requirements

In order for the sale of a city affordable property to be completed, the HACSB must approve and issue a Certificate of Compliance. The HACSB has 35 days from notification that escrow has opened to issue a Certificate of Compliance, provided that all requirements have been met. The following are the items that need to be reviewed and approved by the HACSB before the issuance of a Compliance Certificate to the escrow company:

1. Seller has furnished the HACSB with a Letter of Intent to Sell and all required information. (Numbers 1-8 under the “What to do if you are the Seller” section)
2. Buyer has provided the HACSB with the Affordable Housing Program application and requested documentation
3. Buyer has provided proof of income and asset documentation which is received within 10 days of escrow opening.
4. HACSB has verified that Buyer meets the income eligibility requirements.
5. HACSB has received a copy of the Purchase Agreement, and any amendments, Escrow Instructions (if applicable), Buyer’s Vesting Interest in Property, Lender’s 1008 and 1003 form, and Legal
6. Description of property.
7. Buyer has signed request for a Notice of Delinquency form.
8. The purchase price of the home does not exceed Maximum Allowable Housing Price.

When the above requirements have been met HACSB issues the Certificate of Compliance.
Important dates to keep in mind:

1. Prior to opening escrow, the seller must submit a complete Notice of Intent to Sell packet (Numbers 1-8 under the “What to do if you are the Seller” section below) to the HACSB.
2. Within 5 days of opening escrow the HACSB should be contacted by either the buyer or the listing agent by submitting the completed signed Affordable Housing Program application and the requested income and asset documentation.
3. The HACSB has 35 days from notification that escrow has opened to issue a Certificate of Compliance, provided that all requirements have been met.

Who to Contact

If you are interested in completing the Interested Buyer Form, please send your contact information to: severett@hacityventua.org. 
If you wish to speak with someone regarding income qualifications and/or compliance certificate requirements, please contact:

Susan Everett
Affordable Housing Program Manager
Phone: (805) 648-5008 Ext. 2257
severett@hacityventura.org



Maximum Allowable Sales Price for Low-Income Units

Based on an equation definedin the Declaration of Covenants, Conditions and Restrictions and incorporates the income for the total number of people residing in the household and the FNMA interest rate when HUD publishes the Area Median Income
*Effective December 11, 2012
 

1 Bedroom	2 Bedroom	3 Bedroom	4 Bedroom
$308,639	$347,253	$385.592	$447,374

Maximum Allowable Sales Price for Moderate-Income Units

1 Bedroom	2 Bedroom	3 Bedroom	4 Bedroom
$420,896	$473,577	$525,982	$610,382

How is the Maximum Housing Price Calculated?

The calculation of the maximum allowable sales price is based on the following factors:

1. Area median income (published annually by the Department of Housing & Urban Development (HUD)), adjusted for family size (3 person for 2-bedroom homes, 5 person for 3-bedroom homes, and 6-person for 4-bedroom homes), and
   


2. Interest rates (FNMA 60-day rate for a 30-year fixed mortgage)


3. For purpose of calculation, a 10% down payment is assumed, a loan consisting of principal and interest is allowed to be 25% of a family’s income. On the date the area median income figures are published by HUD, we also verify the FNMA 60-day rate for a 30-year mortgage. A margin of .125 is added to the published rate. Based on that interest rate, the allowable 25% of a family’s income loan amount can be calculated. The maximum allowable sales price is achieved, by adding the 10% down payment to the maximum supportable mortgage.


4. Maximum sales price of your home can either be the current maximum sales price cap or the purchase price of the home, whichever is greater.