Staff ReportMEETING DATE: 10/20/15
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COUNCIL AGENDA REPORT ITEM NO. q
DATE: OCTOBER 13, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL R. PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT
WITH HELLO HOUSING FOR ADMINISTRATION OF THE TOWN'S
BELOW MARKET PRICE AFFORDABLE HOUSING PROGRAM (BMP)
RECOMMENDATION:
Authorize the Town Manager to execute an agreement with Hello Housing for administration of
the Town's Below Market Price Affordable Housing Program (BMP Program).
BACKGROUND:
The BMP Program was initiated in 1979 as a mechanism to increase the supply of housing in Los
Gatos that is affordable to low or moderate income households. The BMP Program requires
developers, when they obtain entitlements, to provide a minimum of 10 percent of the total
number of market rate units in a development as affordable housing units. Deed restrictions are
recorded on the title of each property to ensure the long term affordability of the rental and for
sale units and to maintain the Town's repurchase option. When new units are made available by
a developer or via a resale by an existing owner, the Town or its administrator solicits
applications from income qualified households and then selects buyers using the Town's adopted
preference scoring criteria. Approximately 50 for -sale and 119 rental BMP units are in the
Town's BMP Program inventory.
The Town has used an administrator for the BMP Program since July 1999. The Administrator's
expertise and knowledge of HUD requirements and affordable housing program administration is
more extensive than Town staff. Additionally, the Town does not have the resources to dedicate
the time needed to administer the BMP Program.
PREPARED BY: JOEL S. PAULSON )
Planning Manager /f zL
Reviewed by:
Town Manager
Town Attorney
N: \DEV \TC REPORTS\2015 \BMP Administmor.doe Revised: 10 /14/15 10 '57 AM
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: BELOW MARKET RATE AFFORDABLE HOUSING PROGRAM
OCTOBER 13, 2015
BACKGROUND (cont'd):
Since September 2012, Neighborhood Housing Services Silicon Valley ( NHSSV) had
administered the Town's BMP Program under the direction of the Community Development
Department. They monitored the Town's BMP Program rentals and owner occupied homes and
made sure they were following BMP Program policy. NHSSV worked with the Town on sales of
homes to BMP qualified applicants, held meetings to inform interested persons, and made sure
they were qualified for the BMP Program. NHSSV dissolved in 2015 and the Town issued a
Request for Qualifications (RFQ) to find a new administrator.
DISCUSSION:
Staff prepared a RFQ, sent it to three housing organizations, and posted it under "What's New"
to encourage additional submittals.
Given the dramatic systemic changes to the housing and lending markets as a result of the "Great
Recession," the Town's BMP Program has not been immune to potential foreclosures or the
impact of tightened lending requirements. When Neighborhood Housing Services Silicon
Valley closed their doors, staff identified that foreclosure prevention, homebuyer education, and
buyer financial pre - qualification experience would also be necessary areas of expertise to
administer the BMP Program. Three (3) organizations submitted proposals and Hello Housing
was selected by Staff as being the most qualified because of their experience with affordable for -
sale housing and rentals and affordable housing loans. The two organizations who were not
selected were Housing Trust Silicon Valley and West Valley Community Services. Housing
Trust Silicon Valley does not have experience as an administrator for a BMP program and West
Valley Community Services had a much higher cost.
Hello Housing is a 501(c) 3 nonprofit organization which began in 2005 and has been
administering affordable housing programs since 2009. They currently administer the BMP
Program for the Cities of Alameda, Concord, Novato, Menlo Park, Alameda, and Livermore.
Staff recommends that the Town contract with Hello Housing for a five -year period for adbase
cost of approximately $70,000 per year from November 1, 2015 to October 31, 2020 (See
Attachment 1).
ENVIRONMENTAL REVIEW:
Environmental review is not required as this is not a project defined by the California
Environmental Quality Act.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: BELOW MARKET RATE AFFORDABLE HOUSING PROGRAM
OCTOBER 13, 2015
FISCAL IMPACT:
Sufficient funds are available in the Housing In -Lieu Fee Deposit Account to cover the costs of
the services for the Town. The current balance in the deposit account is approximately $2.95
million.
CONCLUSION:
Staff recommends that the Town Council authorize the Town Manager to execute an agreement
with Hello Housing to administer the Town's BMP Program under the direction of the
Community Development Director.
Attachment:
1. Draft Agreement with Hello Housing
Distribution:
Hello Housing, Attn: Mardie Oakes, 1242 Market Street, 3'd Floor, San Francisco, CA 94102
AGREEMENT FOR CONSULTANT SERVICES FOR ADMINISTRATION OF THE
TOWN'S BELOW MARKET PRICE AFFORDABLE HOUSING PROGRAM
THIS AGREEMENT is dated for identification November , 2015, and is made by and
between TOWN OF LOS GATOS, a California municipal corporation, ("Town ") and Hello
Housing, ( "Consultant "), whose address is 1242 Market Street, 3`a Floor, San Francisco, CA
94102. This Agreement is made with reference to the following facts. This contract will remain in
effect from November 1, 2015 to October 31, 2020.
I. RECITALS
1.1 The Town desires to engage Consultant to administer the Town's Below Market Price
Affordable Housing Program.
1.2 The Consultant represents and affirms that it is qualified and willing to perform the desired
work pursuant to this Agreement.
II. AGREEMENTS
2.1 Scope of Services. Consultant shall provide services as described in that certain Proposal
for Services sent to the Town on August 7, 2015, which is hereby incorporated by reference
and attached as Exhibit A.
2.2 Term and Time of Performance. The services of the Consultant are fixed for a five year
period that will commence upon the execution of the contract. At the end of this period,
should the Town not renew the contract, the contract shall automatically expire. The
individual time of performance schedule for each project referred to the Consultant is
required to be perform as outlined in the scope of work section of this contract.
2.3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes,
ordinances, and regulations of governing federal, state and local laws. Consultant
represents and warrants to Town that it has all licenses, pemlits, qualifications and
approvals of whatsoever nature which are legally required for Consultant to practice its
profession. Consultant shall maintain a Town of Los Gatos business license pursuant to
Chapter 14 of the Code of the Town of Los Gatos.
2.4 Sole Responsibility. Consultant shall be responsible for employing or engaging all persons
necessary to perform the services under this Agreement.
2.5 Information /Report Handling. All documents furnished to Consultant by the Town and all
reports and supportive data prepared by the Consultant under this Agreement are the
Town's property and shall be delivered to the Town upon the completion of Consultant's
services or at the Town's written request. All reports, infonnation, data, and exhibits
prepared or assembled by Consultant in connection with the performance of its services
pursuant to this Agreement are confidential until released by the Town to the public, and the
Consultant shall not make any of the these documents or information available to any
I
ATTACHMENT 1
individual or organization not employed by the Consultant or the Town without the written
consent of the Town before such release. The Town acknowledges that the reports to be
prepared by the Consultant pursuant to this Agreement are for the purpose of evaluating a
defined project, and Town's use of the infonnation contained in the reports prepared by the
Consultant in connection with other projects shall be solely at Town's risk, unless
Consultant expressly consents to such use in writing. Town further agrees that it will not
appropriate any methodology or technique of Consultant which is and has been confirmed
in writing by Consultant to be a trade secret of Consultant.
2.6 Compensation. Compensation for Consultant's professional services shall be an estimated
$70,000 annually with possible optional increases for sales and resales of homes. Payment
shall be based upon Town approval of each task.
2.7 Billing. Billing shall be quarterly by invoice within thirty (30) days of the rendering of the
service and shall be accompanied by a detailed explanation of the work performed by whom
at what rate and on what date.
Payment shall be net thirty (30) days. All invoices and statements to the Town shall be
addressed as follows:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
110 E. Main Street
Los Gatos, CA 95030
2.8 Availability of Records. Consultant shall maintain the records supporting this billing for
not less than three years following completion of the work under this Agreement.
Consultant shall make these records available to authorized personnel of the Town at the
Consultant's offices during business hours upon written request of the Town.
2.9 Assignability and Subcontracting. The services to be performed under this Agreement are
unique and personal to the Consultant. No portion of these services shall be assigned or
subcontracted without the written consent of the Town.
2.10 Independent Contractor. It is understood that the Consultant, in the performance of the
work and services agreed to be performed, shall act as and be an independent contractor and
not an agent or employee of the Town. As an independent contractor he /she shall not obtain
any rights to retirement benefits or other benefits which accrue to Town employee(s). With
prior written consent, the Consultant may perform some obligations under this Agreement
by subcontracting, but may not delegate ultimate responsibility for performance or assign or
transfer interests under this Agreement. Consultant agrees to testify in any litigation brought
regarding the subject of the work to be performed under this Agreement. Consultant shall
be compensated for its costs and expenses in preparing for, traveling to, and testifying in
such matters at its then current hourly rates of compensation, unless such litigation is
brought by Consultant or is based on allegations of Consultant's negligent performance or
wrongdoing.
2
2.11 Conflict of Interest. Consultant understands that its professional responsibilities are solely
to the Town. The Consultant has and shall not obtain any holding or interest within the
Town of Los Gatos. Consultant has no business holdings or agreements with any individual
member of the Staff or management of the Town or its representatives nor shall it enter into
any such holdings or agreements. In addition, Consultant warrants that it does not presently
and shall not acquire any direct or indirect interest adverse to those of the Town in the
subject of this Agreement, and it shall immediately disassociate itself from such an interest,
should it discover it has done so and shall, at the Town's sole discretion, divest itself of such
interest. Consultant shall not knowingly and shall take reasonable steps to ensure that it
does not employ a person having such an interest in this performance of this Agreement. If
after employment of a person, Consultant discovers it has employed a person with a direct
or indirect interest that would conflict with its performance of this Agreement, Consultant
shall promptly notify Town of this employment relationship, and shall, at the Town's sole
discretion, sever any such employment relationship.
2.12 Equal Emplolnnent Opportunity. Consultant warrants that it is an equal opportunity
employer and shall comply with applicable regulations governing equal employment
opportunity. Neither Consultant nor its subcontractors do and neither shall discriminate
against persons employed or seeking employment with them on the basis of age, sex, color,
race, marital status, sexual orientation, ancestry, physical or mental disability, national
origin, religion, or medical condition, unless based upon a bona fide occupational
qualification pursuant to the California Fair Employment & Housing Act.
IIl. INSURANCE AND INDEMNIFICATION
3.1 Minimum Scope of Insurance:
i. Consultant agrees to have and maintain, for the duration of the contract,
General Liability insurance policies insuring him /her and his /her firm to an
amount not less than: one million dollars ($1,000,000) combined single limit
per occurrence for bodily injury, personal injury and property damage.
ii. Consultant agrees to have and maintain for the duration of the contract, an
Automobile Liability insurance policy ensuring him /her and his /her staff to
an amount not less than one million dollars ($1,000,000) combined single
limit per accident for bodily injury and property damage.
iii. Consultant shall provide to the Town all certificates of insurance, with
original endorsements effecting coverage. Consultant agrees that all
certificates and endorsements are to be received and approved by the Town
before work commences.
iv. Consultant agrees to have and maintain, for the duration of the contract,
professional liability insurance in amounts not less than $1,000,000 which is
3
sufficient to insure Consultant for professional errors or omissions in the
performance of the particular scope of work under this agreement.
General Liability:
i. The Town, its officers, officials, employees and volunteers are to be covered
as insured as respects: liability arising out of activities performed by or on
behalf of the Consultant; products and completed operations of Consultant,
premises owned or used by the Consultant. This requirement does not apply
to the professional liability insurance required for professional errors and
omissions.
ii. The Consultant's insurance coverage shall be primary insurance as respects
the Town, its officers, officials, employees and volunteers. Any insurance or
self - insurances maintained by the Town, its officers, officials, employees or
volunteers shall be excess of the Consultant's insurance and shall not
contribute with it.
iii. Any failure to comply with reporting provisions of the policies shall not
affect coverage provided to the Town, its officers, officials, employees or
volunteers.
iv. The Consultant's insurance shall apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that
coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except
after thirty (30) days' prior written notice by certified mail, return receipt requested, has
been given to the Town. Current certification of such insurance shall be kept on file at all
times during the term of this agreement with the Town Clerk.
3.3 Workers' Compensation. In addition to these policies, Consultant shall have and maintain
Workers' Compensation insurance as required by California law and shall provide evidence
of such policy to the Town before beginning services under this Agreement. Further,
Consultant shall ensure that all subcontractors employed by Consultant provide the required
Workers' Compensation insurance for their respective employees.
3.4 Indemnification. The Consultant shall save, keep, hold harmless and indemnify and defend
the Town its officers, agent, employees and volunteers from all damages, liabilities,
penalties, costs, or expenses in law or equity that may at any time arise or be set up because
of damages to property or personal injury received by reason of, or in the course of
performing work which may be occasioned by a willful or negligent act or omissions of the
Consultant, or any of the Consultant's officers, employees, or agents or any subconsultant.
u
IV. GENERAL TERMS
4.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder
shall operate as a waiver of any other right or remedy that party may have hereunder, nor
does waiver of a breach or default under this Agreement constitute a continuing waiver of a
subsequent breach of the same or any other provision of this Agreement.
4.2 Governing Law. This Agreement, regardless of where executed, shall be governed by and
construed to the laws of the State of California. Venue for any action regarding this
Agreement shall be in the Superior Court of the County of Santa Clara.
4.3 Termination of Agreement. The Town and the Consultant shall have the right to tenninate
this agreement with or without cause by giving not less than fifteen days (15) written notice
of termination. In the event of termination, the Consultant shall deliver to the Town all
plans, files, documents, reports, performed to date by the Consultant. In the event of such
tenmination, Town shall pay Consultant an amount that bears the same ratio to the
maximum contract price as the work delivered to the Town bears to completed services
contemplated under this Agreement, unless such termination is made for cause, in which
event, compensation, if any, shall be adjusted in light of the particular facts and
circumstances involved in such termination.
4.4 Amendment. No modification, waiver, mutual termination, or amendment of this
Agreement is effective unless made in writing and signed by the Town and the Consultant.
4.5 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be
entitled to reasonable attorney's fees, including costs of appeal.
4.6 Notices. Any notice required to be given shall be deemed to be duly and properly given if
mailed postage prepaid, and addressed to:
Town of Los Gatos Hello Housing
Attn: Town Clerk Attn: Mardie Oakes
1 10 E. Main Street 1242 Market Street, 3'a Floor
Los Gatos, CA 95030 San Francisco, CA 94102
or personally delivered to Consultant to such address or such other address as Consultant
designates in writing to Town.
4.7 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the
terms and conditions of this Agreement in respect of the Products or Services and any
attachments to this Agreement, then the terms and conditions of this Agreement shall
prevail over attachments or other writings.
5
4.8 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and
exclusive statement of the Agreement between the Town and Consultant. No terms,
conditions, understandings or agreements purporting to modify or vary this Agreement,
unless hereafter made in writing and signed by the party to be bound, shall be binding on
either party.
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement.
Town of Los Gatos by:
Laurel R. Prevetti, Town Manager
Recommended by:
Joel S. Paulson, Planning Manager
Approved as to Form:
Robert W. Schultz, Town Attorney
N:ADEVABMPAHello Housing \Hello Housing Agieementdoe
6
Consultant by:
Mardie Oakes, Executive Director
4E IMPLEMENTATION PLAN
is
A. Brief Narrative
Hello Housing, a non - profit serving the greater Bay Area, is uniquely positioned to offer comprehensive BMP
Portfolio administration services to the Town of Los Gatos. Hello Stewardship, a program of Hello Housing,
currently manages an array of homeownership, home repair and rental programs for five jurisdictions and
provides active management of 583 deed - restricted homes. Hello Housing has a proven track record in each
of the requested services, except homebuyer counseling which would be referred out to a partner agency.
Hello Housing is one of ten organizations nationwide awarded multi -year funding from the Social Innovation
Fund and the Ford Foundation to build its capacity to professionally manage BMP programs using national
best practices.
B. Strategies for Implementation
Hello Housing offers comprehensive administration services for the management of BMP programs. Below are
our proposed strategies and methodologies for managing the Town of Los Gatos' program.
a. Program set -up.
Hello Housing will draft and send an introduction letter to all BMP owners and BMP rental property
managers announcing the change in BMP program administrators. Hello Housing will set -up a dedicated
webpage on its website with program information, FAQ's and contact information for BMP Program
Manager. Hello Housing will review all digital files and enter BMP owners into Salesforce database for
ongoing administration. Hello Housing will create flow charts for the resale and refinance process identifying
each activity and responsible parry for each action and will submit for Town approval. Hello Housing will
review Town's application, procedures, and /or guidelines and suggest modifications that are in -line with
industry best practices, if applicable.
b. Ongoing BMP administration.
Hello Housing will field all program inquiries, maintain a dedicated program webpage, advertise the BMP
Program, provide applications upon request, maintain a waitlist of qualified buyers and maintain a preferred
BMP lender list that have program documents approved. Hello Housing will provide a semi - annual report to
the Town outlining BMP program activity, Hello Housing will offer translation services in Spanish as needed.
At the request of the town, Hello Housing will provide BMP Prices for new BMP projects, suggest
modifications to the program and assist Town staff on program related matters.
c. Annual compliance monitoring of BMP ownership portfolio.
Hello Housing will annually send up to three letters to BMR homeowners requesting verification of
occupancy and any other compliance requirements of the program. Upon completion of annual monitoring
and compliance of BMP units, Hello Housing will provide the city with a monitoring report summarizing the
findings and listing detailed information regarding non- responders or non - compliant responders. Please
refer to Section 5 - Exhibits for a sample monitoring report. All monitoring results will also be tracked in
our Salesforce database. Optional - Hello Housing will annually send newsletters to BMR owners sharing
helpful resources available to them and a home maintenance checklist. Please refer to Section 5 -
Exhibits for a sample newsletter.
d. Annual compliance monitoring of BMP Rental portfolio.
Hello Housing will coordinate with BMP rental property managers to get updated lists of rent restricted
tenants and addresses. Hello Housing will annually mail a re- certification application with a list of required
supporting documents. Hello Housing will follow -up with tenants for missing documents up to three times.
Hello Housing will underwrite each tenant for income, program eligibility and affordable rent levels. Hello
Housing will then send a report with its compliance findings to the Town and to the property managers.
e. Process the sale and resale of BMR homes.
Hello Housing will prepare marketing material and will advertise units through email blasts to dedicated
leads, listings on our website and the current waitlist. Interested homebuyers can also sign up via our
website to receive email blasts of available units or when Hello Housing is accepting new applications to
the waitlist. Please refer to Section 5 - Exhibits for a sample marketing flyer. Hello Housing will perform
a site inspection to determine any repairs any repairs needed before listing the home for sale. Hello
Housing will calculate the restricted resale price as outlined in the Town agreements, create a resale
application to be uploaded on our website and provided to the listing agent to distribute to prospective
applicants during the open house. The necessary education about program requirements, a responsibility
matrix and the timeline will also be provided to listing and buyer agents, as well as answering all calls and
emails from the public and providing the guidance required. Hello Housing will screen applications for
completeness and preference points to determine the ranking order for program eligibility and approval.
Hello Housing will collect all backup documentation from applicants to be screened and reviewed for
income and program eligibility. Please refer to Section 5 - Exhibits for a sample application screening
worksheet. A complete file will then be sent to the Town along with an income'calculator, detailed checklist
and our recommendation for approval. Once the Town approves the file, we will begin collecting the
required information from escrow and the lender that is needed to complete the Town documents including
restrictions, notes, DOTs and escrow instructions. Hello Housing will create the documents and route with
instructions for signature and notarization to the Town of escrow ensuring conforming loan is secured, a
timely close is met and the Town receives copies of recorded documents. Once complete, these files
become part of our ongoing monitoring portfolio. Finally, Hello Housing will send an exit survey to BMP
owner leaving the program to track the impact of the program including equity gained, and type of housing
they are moving into (e.g. rental, affordable or market -rate ownership.). Please refer to Section 5 -
Exhibits for a sample flowchart that details our preferred resale process.
f. Process refinances of BMR homes.
Hello Housing will answer questions from the public and provide information on acceptable first loan
Products for a refinance, required documentation needed to process a request, and timeline expectations
for lenders and owners. Hello Housing will coordinate with the Title Company and first lender for access to
a preliminary title report and loan terms in order to review and confirm that the refinance meets program
guidelines. Once our review is complete and the request is approved, Hello Housing will prepare the
subordination agreement, escrow instructions and all other required Town documents and route for
signature. Lastly, we will follow up with the title company on close of escrow, and status of the Town's
receipt of copies of recorded documents. Please refer to Section 5 - Exhibits for a sample flowchart
that details our preferred refinance process.
g. Rental Housing Services.
Hello Housing will provide updated income guidelines to all property managers of the BMP program
annually. Hello Housing will manage the entire rental process, including advertising the BMP rental program
as necessary and verification of program eligibility of all new tenants through an application and thorough
review of a list of financial documentation that is required as part of the application.
h. Design and Distribution of an Impact Survey,
Hello Housing will send homeowners an optional "Impact Survey" to help us better understand and
measure the impact BMR programs are having in the lives of those who participate in them. As part of our
NCB Capital Impact and the White House's Social Innovation Fund grant award, Hello Housing is helping
to collect data from BMR owners to contribute to a national study being done on the impacts of BMR
investments. This information will help demonstrate whom BMR programs impact and how /if these
Programs improve the lives of participates and contribute to healthier more vibrant cities. Please refer to
Section 5 - Exhibits for a sample of our Impact Survey.
Conduct informational workshops.
Hello Housing will conduct workshops as needed informing the general public regarding opportunities and
availability of the Town's BMP homeownership programs, answering questions, and capturing attendee
information to track as leads.
C. Fee Schedule
Proposed Pricing for the Town of Los Gatos
Administration of Los Gatos' BMP Program Created 8.6.15
BMP Ownership Homes in Portfolio
BMP Rental Homes in Portfolio
Estimated Number of Resales
Estimated Number of Refinances
Estimated Number of Waftlist Applications
Workshops
Estimated Number of BMP Rental Unit Turnover
..-. ....,�, ..,.<.;.u, . a.._'
Contract Set -Up Fee (due contract execution) N
i�a�- ...z�,,J3ria:'a";.e`'�ae.s
"
Onboarding BMP Ownershi p files
$3500 one time tee
$
3,500
$
_ `
(a)
Onboard'Ir�u BMP gental files
$50 per home
$
2 500
$
_
$25 per unit
6G".a`ab °v�v%tm2�8"'Ci..
Reid cells, nlalntain dedicated websfte, submital �'`
$ -
of semi- annual report
BMP Ownership Compliance Monkodng (b)
$15000 annual fee
0
15,000
BMP Rental Compliance Monttonng
$150 per home
$
7 500
$
7.500
357to�$ - 35,700
BMP Odentatlon Meefing/Workshope _"" "�'^' -- °- �A%N>+�`i
'h*..
Management of Resales
$750 per workshop
$
-
$
750
Management of Refinances (c)
$7500 per home
$
-
$
7,50D
BMP Rental Eligibility Verification (upon BMP rental vaoan20 Idl
$650 per home
$
1,300
$
1,300
$300 per applicant
$
1,500
$
1,500
$
69,975
$
69,250
Year One Set -Up Costs
$
8,975
$
-
Annual Fixed Costs
$ -
58,200
$
58,200
Projected Transaction Costs
$
2,8DO
$
11,050
$
69,975
$
69,250
BMP Homeowner Custom Annual Newsletter
Open Wallis! and Process New BMP Wafflist Applications
$2500 per issue
Recordation of Updated Requests for Notice of Default
$100 per applicant
$40 per unit
Executive Director
Program Director
Program Manager
Program Associate
Notes
(a) The assumes all program documents and owner files will be delivered in a digital format. Hello Housing will enter all files into Saleeforce database for
ongoing management. Fee only charged in Year 1.
N) Regardless of the transaction level in the BMP program, Hello Housing dedicates trained staff to be knowledgeable about the program to field inquires and
have capacity to manage transactions when they arise. This fixed fee is meant to cover those staff members time dedicated to the program, This fee is to be
billed on a pro rata monthly basis.
(c) 50% of fee due at when eligible buyer has been approved by the city and enters into a purchase agreement. NI broker fees from the transaction will be
used to pay a Realtor partner and the cooperating broker.
(d) Pricing assumes gathering eligibility packages from each development & reviemng of each tenants' income.
• Sample Marketing Flyer
• Sample BMR Sale Workshop Ad
• Sample BMR Sale Application Screening Worksheets
• Sample Resale Program Flowchart
• Sample Refinance Program Flowchart
• Sample Monitoring Report
• Sample Annual Newsletter
• Impact Survey Template
Marketing Flyer
C.ome to on open h0L)se or
, Cche ul o fou-
1829 Para Street, . lamedo
Offered of $202,636
Located in the beautiful City of Alameda
It's still possible to own part of the American dream. This
Below Market Rate (BMR) home is the result of an
innovative public - private partnership to create
permanent, high - quality BMR homes in the City of
Alameda. Applications can be downloaded at
www.hellohousing.org /stewardship /cityofolamedo/
homes /. Please submit applications with offer package
to Sally Rudloff.
GHOUSing
Interested? Please contact Sally Rudloff,
Realtor" (BRE# 00968085) with Kane and
Associates Real Estate at (510) 301 -8418 is
learn more. For application details and BMR
program guidelines, please call Andrea at
Hello Housing at (415) 863 -3036.
The City of Alameda's Below Market Rate
Homeownership Program does not discriminate
against any persons on the grounds of race,
color, national origin, religion, sex or age, per
Title VI of the Civil Rights Act, Section 109.
EOUq HOUSING
OR PORT ON IT
BMR Sale Workshop Ad
City of t'
Below Market Rate Program
Informational
On behalf of the City of Novato, Hello Housing will be hosting a
workshop to share important information and resources with the
residents of Meadow Park and Villa Entrada.
join us t o learn about
The ins and outs of refinancing
Making improvements to your home
Re- selling your Below Market Rate home
Upcoming monitoring on behalf of the City
Foreclosure prevention
O&A
- - There is room for 50
www.hellohousing.org /stewardship /cityofnovato workshop participants
BMR Sale Application Screening Worksheets
County of Alameda NSP
QUALIFICATION FOR ELIGIBILITY
APPLICANT:
LENDER:
Yes No
(Hello Housing)
COMMENTS:
Household size:
Tax Returns - Confirm
Loan Application (2° review)
.....
..
.Other.
Verify income:
Payroll stubs (2 most recent;. more ff needed)
Tax Returns (all pages, induding W -7s, 109Ws, etc.)
Proof of child support, alimony, other sources of income, etc.
Loan application (2- review)
Other:
Verify assets:.
Financial Statements/Other (1 month, all pages)
Loan application (21 review)
1003 form matches Income Certification Form (21 review)
'Down Payment
Buyer Contrbution is greater Dr equal to NSP Down Payment Assistance being requested
Gift letter
(Hello Housing)
COMMENTS:
County of Alameda Income Certification
Eff ,moo e: 913
Paystub Breakdown
( Mm Igrc Cbvtly or Alaa�a NSP
nouseroia srza: o
Poceseor: Matt Werrer
X819'. 9/5113
Resale Program Flowchart
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Monitoring Report
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City of ® Annual Compliance Monitoring
September 25, 2013
Hello Housing has performed its 2013 annual monitoring for located in the City of M.
This process included mailing up to three rounds of letters to residents, responding to phone and email
inquiries, and collecting and reviewing responses for completeness and compliance within the City of
M's primary program guideline of owner occupancy.
The following chart reflects the completeness of responses from the owners at
IIF
66% provided a complete response
18% provided a partial response
• 16% provided no response
Non - responders
Partial Responses (✓) form ( ) license (✓) utility bill
.1 Partial Response (✓) form (✓) license ( ) utility bill
s Partial Response (✓) form ( ) license ( ) utility bill
Complete Responses (✓) form (✓) license (✓) utility bill
For detailed information about non - responders or non - compliant responders, please refer to:
Attachment A for a list of the names and addresses of non - responders from . Please note
that individuals who have been reported as >$5,000 behind on their HOA dues are highlighted in blue.
Attachment B for a list of responders whose information did not fully satisfy the monitoring requirements.
Notes regarding their responses are included.
Attachment C for a list of responders who submitted all documents, but have an incorrect address on their
driver's license.
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Annual Newsletter
" • Alameda!
Info + Insights on Affordable Homeownership in Alameda
The City of Alameda has retained Hello Housing, a non - profit organization serving the greater Bay
Area, to manage its affordable homeownership programs. We at Hello Housing are excited by the
opportunity to serve the residents of the City of Alameda and want to make sure you are aware of
helpful resources currently available to you as an owner of a Below Market Rate (BMR) home.
Interested in Refinancing your home?
You may have heard that interest rates are currently
very low. If you are interested in refinancing your BMR
home for a lower monthly housing payment, you must
first have your new loan approved by Hello Housing on
behalf of the City. We are here to help walk you through
this process, refer you to lenders who understand the
program and answer any questions you might have.
Refinancing is also now possible if you have a Down
Payment Assistance Loan from the City. For more
information on refinancing your BMR home, please
give us a call or send us an email.
Thinking about selling your
Below Market Rate home?
We are here to help you through each step of the
process involved in re- selling your BMR home. We will
work with you to collect the information needed to
calculate your maximum resale price, refer you to
experienced Realtors, help find qualified buyers and
more. Please note that the City requires a written
Notice of Intent to Sell before you begin the listing and
sales process of your BMR home. For more
information on selling your BMR home, please give us a
call or send us an email. You can download a copy of
the Notice of Intent to Sell form at www.hellohousing,
org /stewardship /cityofalameda.
Interested in Post- Purchase
Counseling?
We have links to post - purchase counseling classes
available to existing homeowners on our website.
These classes cover topics such as the importance of
community involvement, budgeting for successful
long -term homeownership, and planning for repairs,
maintenance and improvements to your home. For a
list of counselors, please visit www.hellohousing.org /
stewardship /cityofalameda/ or email us for a list.
Having trouble making
your payments?
If you find that you have fallen behind on your mortgage
payments, please contact Hello Stewardship immediately
at (415) 689 -7746 or email Matt at matt@hellohousing.
org. The City of Alameda and Hello Housing can direct
You to counselors or programs that may help you to
avoid foreclosure or we can assist you in the sale of your
home prior to foreclosure, but timely notification is critical.
Please visit www.hellohousing.org /stewardship/
stewardship Have questions? Matt has answers! Please call him at (415) 689 -7746
or email him at mattChellohousing.org.
Wondering what's happening with home values in Alameda?
The housing market is showing some signs of a recovery in the Bay Area with the number of foreclosures dropping and
home values rising. This trend increases the opportunities for BMR owners to refinance or resell their home. Most
recently, the discount that buyers had come to expect if they bought a foreclosed home is disappearing.
Median sales Price $ 600,000
$ 400,000
$ 200,000
. Median Sales Price — Median foreclosure Sales Price
Sep'12 Oct '12 Nov'12 Dec '12 Jan '13 Feb'13
A Market Summary for Alameda, CA according to RealtyTrac
— As of May 7, 2013, there were 114 properties in
Alameda, CA in some stage of foreclosure (default,
auction or bank owned) while the number of homes listed
for sale on RealtyTrac was11.
— In March 2013, the number of properties that received
a foreclosure fling in Alameda, CA was 36% higher than
the previous month but 63% lower than the same time
last year.
— Nome sales for February 2013 were down 24%
compared with the previous month, and down 16%
compared with a year ago. This reflects a Bay Area trend
that fewer and fewer homes are available for sale, which
drives up purchase prices.
— The median sales price of a non - distressed home in
February 2013 was $525,000.
— The median sales price of a foreclosure home in
February 2013 was $506,000 (4% lower than non -
distressed home sales).
Let us know how we're doing by sending an email to hello@hellohousing.org
with any feedback. suggestions or compliments.
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Home Maintenance Checklist
MONTHLY
0 Fire Extinguisher: First, make sure you
have one and know where it is! Then,
check that it's fully charged; recharge or
replace if needed.
0 Sink/Tub Stoppers and Drain Hales:
Clean out debris. Running warm water
helps loosen debris.
0 Garbage Disposal: Flush with a
mixture of hot water and baking soda to
keep it running properly.
0 Forced -!lair Heating System: Change
filters monthly if your system uses
fiberglass filters.
EVERY 2 MONTHS
0 Wall Furnace: Clean grills so they are
free of dust bunnies or other debris.
0 Range Hood: Clean the grease filter.
EVERY 3 MONTHS
0 Faucets: Clean debris and mineral
deposits out of the aerator (a small
screen screwed onto your faucet) to
keep water flowing smoothly.
❑ Tub Drain: Clean out debris
0 Outdoor Drain Grates: Clean out
debris to ensure proper drainage around
your home.
0 Termites: Inspect the perimeter of your
home for evidence of termites, such as
mud tubes around the foundation. Make
sure that there is at least six inches of
clearance between any soil or mulch
and the bottom of your siding.
EVERY 6 MONTHS
0 Smoke Detector: Test batteries and
replace if needed. We recommend you
do this before that dreaded beeping
sound wakes you up in the middle of
the night.
0 Toilet: Check for leaks and water run -
on. That running sound means you are
wasting water and money.
0 interior Caulking: Inspect caulking
around tubs, showers, and sinks;
replace any if missing or cracking. Caulk
helps keeps water from your relaxing
bath from rotting the wood studs and
plywood behind your wall and floors.
0 Forced -Air Heating System: Replace
the filter if your system uses high -
efficiency pleated or HEPA -style filters.
0 Garbage Disposal: Tighten drain
connections and fasteners.
0 Range Hood: Clean fan blades
and housing.
ANNUALLY
0 Termites: If termites or other pests
have taken a liking to your home,
consider signing up for regular pest
inspections and treatments. There are
effective, non -toxic options available.
0 Main Cleanout Drain: Consider having
a "rooter" professional clean out the
main line, particularly if there are mature
trees in your yard whose roots could
have cracked the pipe in their search
for moisture.
Checklist adapted from Sunset Books' JoAnne Liebeler's Do It Herself by Hello Housing
/Seasonal
EVERY SPRING
❑ Roof: Inspect roof surface, flashing,
eaves, and soffits; repair if needed.
❑ Gutters and Downspouts: Clean
them out (or hire a professional). Inspect
and repair weak areas; check for
proper drainage and make repairs if
needed.
❑ Trees: Inspect for any branches that
are at risk of falling on your home (or
your neighbors) and have them
trimmed, if needed.
❑ Siding: Inspect and clean siding and
repair if needed.
❑ Exterior Caulking: Inspect caulking
and replace any that is deteriorating.
Just like inside your home, caulk helps
keep the rain from rotting the wood
studs and plywood behind your siding.
❑ windowsills, Doorsills, Thresholds: Fill
cracks, caulk edges, repaint; replace if
needed.
❑ window and Door Screens: Clean
screening and repair or replace if
needed; tighten or repair any loose or
damaged frames and repaint if needed;
replace broken, worn, or missing
hardware; tighten and lubricate door
hinges and closers.
EVERY FALL
❑ Roof: Inspect roof surface, flashing,
eaves, and soffits; repair if needed.
❑ Gutters and Downspouts: Clean
them out (or hire a professional).
Inspect and repair weak points;
check for proper slope.
❑ Trees: Inspect for any branches that
are at risk of falling on your home (or
your neighbors), and have trimmed if
needed.
❑ Chimney: Clean flue (more frequently
if needed); repair any cracks in flue or
any loose or crumbling mortar.
❑ Siding: Inspect and clean siding and
repair if needed.
❑ Exterior Caulking: Inspect caulking
and replace any that is missing or
deteriorating.
❑ window and Door weather
Stripping: Inspect and repair or
replace if it is deteriorating or if it does
not seal.
Saving up for Summer?
The best way to keep home repair costs low is to
perform preventative maintenance. if you see tasks
on this list that you aren't sure how to tackle, there
are videos available online that describe just about
everything. Check out websites such as www.
wikihow.com or www.ehow.com to learn how to
perform basic repairs.
Impact Survey
Impact Survey 2013
Optional but appreciated.!
Many thanks for your participation in this survey! Your responses will be kept strictly confidential
and will be used only to better understand the impact of affordable homeownership programs
offered by cities and counties. Please note this is not required as part of your annual monitoring.
Your Name
Current Address
Your Living Situation Before You Bought Your Home
What was your living situation at the time you applied?
❑ Rented ❑ Owned ❑ Lived with parents /friends ❑ Lease Purchase ❑ Other
Number of bedrooms?
❑ Studio ❑ 1 bedroom ❑ 2 bedrooms ❑ 3 bedrooms ❑ 4 bedrooms ❑ 5+ bedrooms
Number of bathrooms?
❑ 1 bathroom ❑ 1.5 bathrooms ❑ 2 bathrooms ❑ 2.5 bathrooms ❑ 3 bathrooms ❑ 3.5+ bathrooms
How would you rate the quality of your living situation prior to purchasing your home?
❑ Good ❑ Adequate ❑ Poor
What was your housing type?
❑ House /Townhouse ❑ Condominium ❑ Mobile Home ❑ Apartment ❑ Lived in Shelter
What was your primary reason for purchasing a home?
What were your monthly housing costs prior to purchase)?
$ rent payment or $ mortgage payment (if owned a home) $ in utilities
How many places did you live in the 5 years prior to purchasing your home?
01 02 ❑3 ❑4 ❑5 ❑6+
Number of household members prior to purchasing your home?
01 ❑2 03 ❑4 ❑5 ❑6+
Would you consider your prior living situation to have been overcrowded?
❑ Yes ❑ No
Had you ever owned a home before?
❑ Yes ❑ No
What hurdles to homeownership did you have to overcome?
❑ Residency in the US ❑ Too many assets ❑ Pending divorce
❑ Not enough income ❑ Credit issues
❑ Over income ❑ Own existing home
❑ Too much debt ❑Other
Impact Survey 2013
Your Current Home in Alameda
What is your current housing type?
❑ Single - Family House ❑ Townhouse ❑ Condominium
How many bedrooms?
❑ Studio ❑ 1 bedroom ❑ 2 bedrooms ❑ 3 bedrooms ❑ 4 bedrooms ❑ 5+ bedrooms
How many bathrooms?
❑ 1 bathroom ❑ 1.5 bathrooms ❑ 2 bathrooms ❑ 2.5 bathrooms ❑ 3 bathrooms ❑ 3.5+ bathrooms
Number of Household Members?
❑1 ❑2 ❑3 ❑4 ❑5 E:] 6+
How many household members are under 18 years of age?
❑1 ❑2 ❑3 ❑4 ❑5+
In what year was your home built?
Exact Year or ❑ 1940s ❑1950s ❑ 1960s ❑1970s ❑1980s ❑1990s ❑2000s ❑2010s ❑ No clue)
Is your home part of a Homeowners' Association (HOA)?
❑ Yes ❑ No If yes, what are the monthly dues? $
Do you or any of your household members work within the city limits of the City of Alameda? ❑ Yes ❑ No
Did purchasing your home result in a shorter commute to work for you? ❑ Yes ❑ No
For other household members? ❑ Yes ❑ No ❑ Mixed
Looking back, how do you feel about your decision to buy your home?
Demographic information
What is your current occupation?
Are you or anyone in your household a veteran?
❑ Yes ❑ No
What is your current marital status?
❑ Single ❑ Married /Domestic Partnership ❑Divorced ❑ Separated ❑ Widowed
What is your race?
What is the primary language spoken in your home?
Are you a female head of household?
❑ Yes ❑ No
Does anyone in your household have special needs?
❑ Yes ❑ No If yes, would you be willing to elaborate?
Ethnicity?