Assignment 12 Bmr San Francisco
The Mayor's Office of Housing and Community Development (MOHCD) requires owners of Inclusionary Affordable Housing Program BMR units to follow the ensuing process when marketing and selling their units. These requirements are documented in the City of San Francisco Residential Inclusionary Affordable Housing Monitoring Procedures Manual 2013("Procedures Manual"). The Procedures Manual governs all MOHCD BMR units. Please note that the typical resale process can take up to130 days in total. Please plan accordingly when selling your BMR unit.
Step One: Contracting with a Realtor
BMR owners must contract with a realtor to list the BMR unit on the Multiple Listing Service (MLS). This listing ensures that the unit will be broadly advertised. MOHCD will add 5% to their base resale price to pay realtors' commission. It is assumed that each realtor will earn half of this amount. The exact commission amount will be listed on the owner's repricing calculations sent by MOHCD.
Step Two: Submitting Pricing Request
The realtor for the BMR owner must submit the following documents in PDF form as a complete submission to firstname.lastname@example.org before the unit can be priced:
- A signed and dated letter (from all owners on title) stating the intent to sell the unit; a request for pricing of the unit; the unit address; the approximate purchase date; the original purchase price and original HOA due amount (an estimate is fine); the number of bedrooms and bathrooms in the unit; the current homeowner association (HOA) fees for the unit; and the reason why you are selling. The following language is an example: I own a BMR unit through the Mayor's Office of Housing and Community Development at ADDRESS, UNIT NO., ZIP which I purchased on DATE. I would like to consider selling my unit and request the current restricted value of the unit from the Mayor's Office of Housing and Community Development. The unit has X bedrooms and X bathrooms. My current HOA dues are $________ as of ________(current date). When I purchased the unit, my HOA dues were $______. The unit was purchased with/without a parking space. I am/am not requesting a capital improvements review. I am/am not submitting a special assessments review. I have decided to sell my unit because: I am relocating; I plan to/have purchase a new home; etc."
- Proof of the current HOA due amount in the form of an invoice or bill.
- A signed listing agreement with a real estate agent who will list the unit on the public San Francisco Multiple Listing Service. In the "sales price" space, realtors may write: "Price to be determined by SF Mayor's Office of Housing and Community Development." Contracts should provide at least a 60-day closing period with a 45 day loan contingency period. Realtors should also note in the listing agreement that the unit is monitored by the Mayor's Office of Housing and Community Development under the Inclusionary Housing Program.
- Documentation of eligible capital improvements on the property or speical assessments paid. See theProcedures Manual for specific information on documenting and submitting this information. BMR units must be at least 10 years old in order for a BMR owner to claim certain eligible capital improvements on their unit and to have this amount added to their resale price.
The realtor should send all documentation at the same time to the contact listed at the bottom of this page.
Step Three: Pricing
MOHCD will price the unit within 30 days of the submission of the listing agreement, resale request and capital improvements documentation. MOHCD will send a letter to the owner stating the resale price. This letter will also be sent to the owner's realtor. Pricing is valid 30 days from the date of the pricing letter. Request for repricing may be subject to a fee.
Explanation of Pricing –
- A BMR unit will be priced so that it remains affordable to another qualifying household.
- Most BMR units will be re-priced using the percentage change in the local median income from the year of the current owner's purchase to the year of resale.
- Some older BMR units will be re-priced using one of two methodologies as dictated by the planning approval for the specific development. These methods include (1) the complete MOHCD pricing formula that is based on the current median income and the current Cost of Funds Index; or (2) the percentage change in the consumer price index from the time of the current owner's purchase to the time of sale. See Repricing Guidelines on the MOHCD website for more information.
CONDO CONVERSION BMR PROGRAM: RESALE PROCEDURES
Welcome to the Condo Conversion Below Market Rate (BMR) Program resale page.
Per Ordinance #320-08, all Condo Conversion BMR Units are subject to the marketing procedures outlined in the 2013 Inclusionary Housing Procedures Manual (See Procedures Manual Section II (F)(page 35). The procedures below outline the resale process for all Condo Conversion Program BMR units.
Step One: Contact the Mayor’s Office of Housing and Community Development (MOHCD)
No less than 30 days prior to marketing the BMR unit, the owner on title must request that the Mayor’s Office of Housing and Community Development (MOHCD) establish the restricted sales price of the unit. The following information must accompany the owner’s resale price request:
- A signed and dated letter (from the seller) stating the unit address; the intent to sell the unit; a request for pricing of the unit; and the current homeowner association fees for the unit. The following language is an example: I own a BMR unit through the Mayor's Office of Housing and Community Development at ADDRESS, UNIT NO., ZIP. I would like to consider selling my unit and request the current restricted value of the unit from the Mayor's Office of Housing and Community Development. My current HOA dues are $________ as of ________(current date). The unit was purchased with/without a parking space. I am/am not requesting a capital improvements review.
- A copy of the Settlement Statement (HUD-1) from the owner’s purchase of the unit. This document can be located among the owner’s original closing materials.
- A signed listing agreement with a real estate agent who will list the unit on the Multiple Listing Service (MLS) and at least one citywide housing forum, such as Craig’s List.
- Documentation of all capital improvements for which the owner wishes to receive credit. Owners must submit the following documentation of eligible capital improvements:
- Itemized list of each capital improvement using the capital improvements spreadsheet.
- Legible receipt or invoice that shows the name of the establishment or seller, date and amount for each listed capital improvement.
- Proof of payment for each listed capital improvement.
- Contractor invoices must show the contractor’s license number and company name.
- When work is done where a permit is required, a signed copy of the permit must be provided.
At MOHCD’s discretion, MOHCD will schedule an inspection of the capital improvements to verify the information provided. All codes, laws and regulations must be followed. Please note that the owner may not get capital improvement credit for all requested items if the improvements do not fit within MOHCD’s Capital Improvements Policy. Click here to review the capital improvements policy under the old program. Click here to review the capital improvements policy applicable to owners who opt into the updated program.
- Documentation of all special assessments for which the owner wishes to receive credit. Special assessments are those payments that are in addition to the homeowner’s regular HOA dues. Regular HOA dues are not eligible under this policy. Documentation of special assessments must include:
- Itemized list of each special assessment.
- Invoice from the homeowner’s association verifying the amount and date the assessment was billed to the particular BMR unit.
- Proof of payment for each listed special assessment.
MOHCD will price the unit within 30 days of the complete submission of all of the documentation listed above. MOH will send a letter to the owner stating the resale price, including all approved capital improvements and special assessments.
Owners must contract with a real estate agent to list the unit on the Multiple Listing Service (MLS) and at least one citywide housing forum, such as Craig’s List. This listing ensures that the unit will be broadly advertised. MOHCD will add up to 5% to the BMR resale price to pay the owner’s realtor and the buyer’s realtor. If the owner is selling the property to the existing tenant, MOHCD will add up to 2% of the BMR resale price to pay the realtor for the transaction. It is assumed that each realtor will earn half of this amount; however, this can be negotiated between the parties involved.
Step Two: Marketing Requirements
Seller’s real estate agent must submit the MOHCD website template and the MLS language for approval by MOHCD no less than 5 business days prior to listing the property. MOHCD will work with the real estate agent to list the property on MOHCD’s website and distribute an email to a list of interested buyers.
Seller’s real estate agent must list the announcement of the resale unit on the Mayor’s Office of Housing and Community Development website for a period of no less than 21 days. The property may not be listed on the MLS prior to being listed on MOHCD’s website.
Seller’s real estate agent must list the property on the MLS and at least one citywide housing forum, such as Craig’s List, for a period of no less than 21 days, with a notation that the property is designated for households of low- or moderate- income and a link to the MOHCD website for additional information on the program.
Seller’s real estate agent must hold at least two open houses for the unit, one on a weekday evening and one during the weekend. Seller’s agent must notify MOHCD of the date and time of the open house for inclusion on its website. During the open house, seller’s agent must collect names of interested homebuyers and submit this documentation to MOHCD.