[0:01] Hi there. Welcome to the Anvil Town Homes weight list application

[0:04] informational video. Uh my name is Annne Chase and I am the director of the

[0:09] Silverton Housing Authority. I'm so glad that you are here to learn more about

[0:12] our exciting home ownership opportunity through the Anvil Town Homes program.

[0:17] This is anformational webinar covering the program basics, details about the

[0:22] homes, and walking through the application process.

[0:25] And before we begin, if you require assistance or language translations to

[0:29] access any of our programs or information, or if you have questions in

[0:32] general, please do not hesitate to contact me at 970 88800278.

[0:39] You can text or call this number or by email. Um, email is preferred and

[0:44] easier, but phone works as well. And I work in town hall in Silverton, and

[0:49] you're welcome to stop by, but scheduled appointments are recommended to ensure

[0:53] that I'm available.

[1:00] In this video, we are going to go over project details

[1:05] and an overview of the development um property and unit information,

[1:10] eligibility and qualification requirements, the weight list process,

[1:14] application and instructions and important dates and next steps.

[1:20] Let's dive into an overview of the development itself. So, the Silverton

[1:23] Housing Authority is a municipal housing authority, which means we're a quasi

[1:27] governmental agency. Our board is the town board of trustees. I am a town

[1:32] employee contracted through an agreement between the two entities. And we've been

[1:36] working on the Anvil Town Homes development for the past 2 years.

[1:40] Through our community master plan process and housing studies and citizen

[1:44] surveys, we have heard that increasing our affordable housing options and

[1:48] opportunities is a top community priority. So, we've designed Anvil Town

[1:53] Homes development to rapidly increase opportunities for folks to buy homes in

[1:58] Silverton that are otherwise priced out of the housing market.

[2:02] So, here's the project team breakdown. The housing authority is the owner. We

[2:07] are responsible for the construction and selling of the homes. Sorry, the

[2:10] construction financing and selling the homes. So over the past

[2:15] year, we've been awarded more than $1 million in grant funding to subsidize

[2:18] the cost of the construction down to more attainable sale prices. And then

[2:22] once these homes are built, we will be responsible for overseeing and enforcing

[2:26] the affordability covenants and program guidelines connected to these homes,

[2:30] which we will get into detail here shortly.

[2:34] We hired a local Colorado developer to increase our capacity because we are

[2:38] such a small and new organization. And this is a $4 million project, so we

[2:44] needed um additional capacity and expertise. So, we leveraged our

[2:50] understanding of the local needs and of our community with partners that have

[2:57] experience and expertise in affordable housing development. And so, we hire

[3:02] Tributary Development. They are based in Buenav Vista and they're overseeing the

[3:07] budget and the construction loan details and overseeing our general contractor

[3:11] and builder. And then when we selected a builder for

[3:14] this project, we were weighing several priorities. So first, we want these

[3:18] homes to be really high quality for our future homeowners. Um,

[3:23] and we also needed to build these homes quickly. We have such a need for below

[3:29] market rate homes in Silverton that um we

[3:33] need to rapidly respond to this demand. And so with these priorities in mind, it

[3:39] made the most sense for this project to use a modular manufacturer. And Fading

[3:43] West is a factory located in Buenav Vista and they build modular homes. And

[3:48] modular homes are different than manufactured homes. So modular homes are

[3:51] built to local building code rather than federal building code and they can't be

[3:55] moved once they're built. So, they're on a um permanent foundation and they

[4:00] appreciate more like stickuilt homes than a manufactured or mobile home.

[4:05] Uh we're really excited about the quality of these homes and

[4:10] um I will share more details about them throughout this session.

[4:15] Before we jump into everything, I want to make sure that we're on the same page

[4:18] of what we mean when we talk about terms or use terms such as income qualified or

[4:23] income level. So every year the federal government calculates the estimated

[4:28] median income of a specific area and in our case it's San Juan County and so

[4:32] they're looking at of all the incomes in San Juan County what is the median or

[4:37] what is the middle income and that's considered 100% area median income also

[4:42] referred to as AMI. From that median then we calculate

[4:48] different percentages based on how much money you make in reference to that

[4:51] median. So, if you earn less than that, you're less than 100% AMI. If you're

[4:57] above that, you're more than 100% AMI. And we can break down exactly what level

[5:02] you're at. So, um,

[5:08] for example, if you're a single person and you make $57,20,

[5:14] you are exactly 80% AMI income. If you are $1 over that, you are above that

[5:21] cutoff of 80% AMI. You're probably 81% AMI.

[5:26] Um, if you're below that 57,000, then you are considered below 80% AMI.

[5:32] And it's very important to note that AMI uses your gross income. So, this is all

[5:37] of the income that you earn before any deductions like taxes or insurance. So

[5:42] even though you pay you may pay taxes directly from your paycheck and that

[5:47] money doesn't go directly to your bank account, that is still money that you

[5:50] earned and we count that in your income calculation.

[5:54] And then income is calculated for everyone in your household over the age

[5:57] of 18. Okay. Now that we understand what we

[6:02] mean when we say income level or AMI, we can start to talk more specifically

[6:07] about what homes are available to you. So, the Anvil Town Homes development has

[6:13] nine units total. Of those nine units, there are two forplexes and there's one

[6:18] single family home. Three units are two bedrooms, one and a

[6:24] half bath at 80% AMI. We have three units at two bedrooms, one and a half

[6:29] bath at 100% AMI. Two units at threebedroom, two bath 100% AMI. And

[6:36] that one unit is a single family, three bed, two bath with a garage. And that is

[6:42] 140% AMI. When you submit an application, you're applying for

[6:47] specific unit type. So you have to meet the qualification standards of the units

[6:51] that you're applying for. So technically, if you earn less than 80%

[6:55] AMI, you could apply for every housing unit because you're below those income

[7:01] levels of all the units. only if you get preapproved for the

[7:05] mortgage of that sale price. So, you have to be able to afford the sale price

[7:13] of 100% or 140%. Um, if you're applying for it and

[7:19] there's a requirement about your monthly housing expenses related to your

[7:23] mortgage and insurance that we'll get into soon. So technically if you're

[7:29] below 80% you could qualify for the higher AMI units so long as you meet the

[7:36] other requirements which we will dive into shortly.

[7:42] And I did forget to mention that one of these units, um, one of the three bed,

[7:46] two bath, 100% AMI units is a visitable unit and a sensory impaired unit, which

[7:54] means that these are designed to accessibility standards so that someone

[7:58] with mobility issues can visit the unit. Um, there isn't a bedroom downstairs, so

[8:05] it's not accessible, but it is visible, so someone in a wheelchair could get

[8:09] into the unit. And then if you have hearing or visual or otherwise sensory

[8:14] impairments, there are features um with the doorbell and fire alarms and

[8:21] etc. to be accessible for people with sensory impairment disabilities.

[8:28] If we receive an application from someone who has a disability,

[8:32] this unit will be its own weight list drawing. Um, so it'll be separate from

[8:38] the other three-bedroom 100% AMI unit. If it if we don't receive any um

[8:45] disabled applicant applications, then we will

[8:49] only have one weight list drawing for the two threebedroom 100% AMI units.

[8:57] This is a timeline of the project. And so, like I said, we've been working on

[9:03] this for over two years. So, we've been in pre-development since uh late 2023,

[9:08] technically early 2024. Um,

[9:12] and the units have been built in the factory, which is exciting. Early

[9:17] October is when we're doing groundbreaking and the applications

[9:20] open. Midocctober is when the homes are transported from Buenav Vista to

[9:24] Silverton. And November 3rd is when applications

[9:29] close. That's when we go through the remedy and appeal periods for those

[9:32] applications and then simultaneously the units are

[9:36] still being built. They're set on the foundations.

[9:39] In December, on December 1st, we will have the weight list drawing and that is

[9:43] when we will determine the order of the weight list. Uh we expect that the first

[9:50] forplex, so one of the forplexes will be completed by the end of December and we

[9:54] will begin pre-sales for all the units once we have that weight list

[9:58] established. January is when that second forplex is expected to be issued its

[10:04] certificate of occupancy and then February is when the single family home

[10:08] will be completed. We're really excited about the quality

[10:12] of these homes. So each home will have one off- streetet assigned parking

[10:16] space. They are noise insulated and this is a really big deal because they're

[10:20] attached town homes. So each home since it's built in a factory is its own box.

[10:25] We call it a box. So each home has a 16-in wall. And in between you and your

[10:31] neighbor is your 16-in wall, a 2-in airspace, and then your neighbor's 16-in

[10:37] wall. Um, we can't guarantee that there's soundproof, but we did test the

[10:45] um, sound in existing homes in URA that use the same manufacturer and um, unit

[10:55] style and we couldn't hear each other across the unit. So, that is good news.

[11:01] The appliances are energy efficient and these homes are built to climate zone 7,

[11:06] which has high insulation ratings. And this will likely translate to lower

[11:12] energy bills each month than the typical home in Silverton due to the energy

[11:16] efficiency and the insulation. These homes are intentionally designed to be

[11:21] high quality. We really want these homes to be lasting homes for our community.

[11:28] And just because they're affordable doesn't mean that we have to cut corners

[11:31] on the quality. So instead, we use grant funding to subsidize the cost of

[11:35] construction down to a more attainable sale price.

[11:41] Since each of these homes received significant public and private funding,

[11:45] they're designed to protect that investment in the project for many

[11:49] homeowners to come. So these properties are subject to the Silverton Affordable

[11:53] Housing Guidelines. This is a document that's adopted by the Silverton Housing

[11:57] Authority that governs the processes and uses of these homes both for the owners

[12:02] and the housing authority. In addition to the guidelines, the homes are

[12:05] encumbered with affordability covenants. And this is a legal document that's

[12:10] attached to the property in perpetuity that governs how the property can be

[12:14] used and sold. And so when we think about the covenants

[12:18] versus the guidelines, the covenants are the rules that legally bind the owner

[12:24] and the property to these rules. And the guidelines are instructions for the

[12:28] owner and the housing authority for how to follow the rules and covenants

[12:32] through specific processes. Um that is to say though, not to say that you don't

[12:40] have to follow the guidelines. the guidelines are enforcable,

[12:44] but they are not specifically attached to the property.

[12:51] And so here are some of the examples of the use restrictions on the home. So the

[12:54] buyer must meet the income level of the unit at the time of purchase. It's

[12:58] important to note that your income can change once you own the home. So you're

[13:04] not locked into earning a specific income during your ownership. However,

[13:08] when you sell the home, the next buyer needs to be at that same income level of

[13:12] the unit. Um, these homes are designed to be

[13:16] primary residences. So, we these are not going to be second homes or investment

[13:21] homes. These are homes that you are going to live in full-time year round.

[13:27] You have to occupy the home 8 months out of the year. And you cannot use this as

[13:32] a short-term rental. Um, SHA, the Silverton Housing Authority, has

[13:37] legal authority to enforce the covenants and guidelines, which may include fees

[13:42] and potentially a force sale of the home if you're not in compliance. All this is

[13:46] to say, though, is that we've created processes like a leave of absence and a

[13:51] tenant approval process so that if life circumstances change for a period of

[13:56] time, we can work with you. So ultimately our goal is that you're

[13:59] successful in your home ownership and we need to ensure that these homes are used

[14:05] as intended. Um

[14:09] and let's see what else the if you want to make capital improvements to the

[14:13] homes it has to be approved by the housing authority if you want that

[14:16] credit and that value of the improvement to be reflected in the sale price when

[14:20] you sell the home. And then additionally, there is an HOA that

[14:24] governs these properties to prepare for expenses such as roof repair,

[14:32] um sidewalk repair, any uh improvements that need to happen on these homes

[14:42] in the future. Another important restriction on these

[14:46] homes is that they do have an appreciation rate cap. So what this

[14:50] means is that every year your house appreciates

[14:55] and this is true of homes in the unrestricted housing market.

[15:00] The the unrestricted housing market that appreciation rate is not controlled.

[15:06] It's controlled by forces of the market. And

[15:10] we're trying to keep these homes affordable to buyers in the future. And

[15:15] so what that means is that we have to put a appreciation cap on the homes. And

[15:20] so they will appreciate 1% of the value of the home or the sale price of your

[15:26] home. Sorry, the sale price of your home at 1% compounding per year. So every

[15:33] year that your house appreciates, that's the new number that the 1% is based

[15:38] upon. So it is a very slow appreciation. However, you will still be making money

[15:45] during your home ownership period of these homes. It's just not going to be

[15:50] the same like 5%, 15%, 20% crazy appreciation increases that uh drive the

[15:59] housing market. Um, so when you resell your home, we have a resale maximum

[16:05] resale price formula that looks at what you bought the home for, how much you

[16:11] how long you owned it for, and then calculate using that 1% compounding

[16:18] compounding um, appreciation rate plus any permitted

[16:23] capital improvements that you have done to the house um, that have been approved

[16:28] by the housing authority. Um, we never guarantee that you can sell

[16:32] the home for the maximum resale price because again, um, the future buyer has

[16:40] to be at that same income level and they may not be able to afford the new resale

[16:45] price, but we will try our best. And the whole resale procedure and the um

[16:52] maximum resale price calculation is in the guidelines and I encourage you to

[16:56] look at that to make sure that this aligns with your home ownership goals.

[17:02] And then I did just want to share visuals of these documents so it feels

[17:06] more tangible when we're talking about guidelines and covenants and

[17:09] restrictions. So the covenants are on the right here and these are the legal

[17:17] uh restrictions that run with the land in perpetuity or until the housing

[17:20] authority releases them in the future. Then the guidelines are a living

[17:24] document that is adopted by the housing authority and can be amended from time

[17:28] to time to outline the processes and the procedures associated with the covenants

[17:32] like the resale procedure um the rental procedure the leave of

[17:37] absence procedure permitted capital improvements etc. So the guidelines are

[17:43] kind of the instructions to how to comply with the covenants.

[17:50] Okay. So, let's talk about who is eligible to apply for these homes.

[17:54] Like we said before, you must be below or exactly equal to the income limit of

[17:59] of the home at the time of application. And then again, right before you buy the

[18:03] home, but we'll get into that in a second. All of the income of your

[18:06] household members that are over the age of 18 is included. And that is the gross

[18:12] income. So that's all the income that you earn before any deductions like

[18:17] taxes, like um insurance. If you're self-employed, you cannot deduct your

[18:25] business expenses from your income like you typically do for your taxes. We are

[18:30] looking at all of the income that comes to you into your bank account, and we

[18:35] count that as your income. And we'll get into what documentation we

[18:41] need to verify all of this shortly. Second, you need to be pre-approved for

[18:47] a mortgage for the sale price of the home that you're applying for. If you

[18:51] are not using a mortgage and you're paying cash, we need to see proof of

[18:54] funds of that cash in the amount of the sale price.

[18:59] So, with your pre-approval letter, you need to request that your lender

[19:04] specifically calls out what your primary interest, taxes, and insurance costs are

[19:11] going to be or estimated to be. Um, these are referred to as pity or PITI

[19:19] costs. In addition to those costs, we're looking at the homeowners

[19:24] uh association fee. And all of those costs combined must be less than 35% of

[19:31] your monthly income. So, we're not looking at utility expenses. We are just

[19:36] looking at primary interest, taxes, insurance, and HOA fees. And we're

[19:42] ensuring that these are less than 35% of your monthly income.

[19:47] And then finally, you need to have completed a HUD certified home buyer

[19:52] education course in the past three years. Regardless of if you've owned a

[19:56] home in the past or even if you're a current homeowner,

[20:00] um this is a requirement of one of our funders that we have to fulfill.

[20:05] However, I recommend strongly that you take a HUD certified oh sorry that you

[20:12] take this course through Homes Fund or Housing Resources of Western Colorado

[20:18] because when you take these courses, you're fulfilling a prerequisite to

[20:24] access their down payment assistance programs

[20:28] and their um second mortgage programs, which may be the key to reducing your

[20:33] monthly costs. the pity costs to below that 35% threshold. So, if you're

[20:39] putting more money down or you're paying less interest, you're reducing your

[20:44] monthly costs and this might be the key to get you qualified for these homes.

[20:50] Um, Homes Fund and Housing Resources of the of Western Colorado are coming to

[20:56] Silverton on October 18th to teach these courses.

[21:00] Um, they have other times available, but those courses are in Durango or Grand

[21:04] Junction. And you can take a HUD certified home buyer education class

[21:08] online. Some are live, some are self-paced. The live classes are usually

[21:14] free or cheap, while the self-paced course is about $80. This info is

[21:20] available on our application page on the website.

[21:23] Okay, I forgot to mention on the last slide that you do not have to currently

[21:27] live in San County or work in San Juan County or even be a legal citizen of the

[21:32] United States to apply for this program. You could be retired, unemployed,

[21:38] disabled, and still qualify for this program so long as you meet the other

[21:43] initial qualification standards. Once you meet the initial qualification

[21:48] standards, you are you earn one entry into the weightless drawing.

[21:54] In addition to that one entry, you could qualify for bonus qualification

[21:58] standards. So that's one of these four definitions

[22:03] um to earn additional entries into the weightless drawing. Total number of

[22:08] entries that you can get into the weightless drawing is four.

[22:11] You cannot combine qualifications with other members of

[22:18] your household. So say you and your partner are both vital workforce, you

[22:22] cannot multiply that three bonus entries into six bonus entries. It's capped at

[22:27] three. Um and it's capped at one person

[22:34] qualifying for the bonus standard. Um what else? This is in your

[22:40] application packet. This is in the guidelines and it's written out in much

[22:45] clearer detail than this. One thing I wanted to call call out is that the

[22:51] qualified disabled bonus entry only applies to the three-bedroom, two bath,

[22:56] 100% AMI visitable, sensory impaired unit. So,

[23:03] the qualified disabled bonus does not apply to

[23:07] um any of the other units, but you could qualify for resident of San Juan County

[23:13] if you live here. Uh in order to qualify for the bonus

[23:17] standards, you do need to submit additional supporting information, which

[23:22] we will get into once we start to walk through the application process.

[23:28] Okay. So, when you submit your application, you will be assigned an

[23:31] applicant ID and I will be the one that will be reviewing your application. I

[23:37] will either approve or deny your application. If you're approved, you

[23:40] will be entered into the weight list drawing and you will be assigned entry

[23:43] numbers. Um, if I deny your application or you

[23:48] disagree with the number of bonus entries that I assigned you, you can

[23:53] appeal that decision during the appeal hearing on December

[23:57] 1st prior to the weight list drawing. And I will give you all that information

[24:01] so that you can go through that process if needed. Hopefully, you don't, but

[24:06] that process is available. Um, your applicant ID and your entry

[24:12] numbers will be completely anonymous. You will know what they are, but I will

[24:17] be the only one that knows them. And the numbers will be sorted randomly. So,

[24:22] we've created this weight list process to be a transparent and fair and

[24:26] randomized process to determine the order in which applicants will be

[24:29] offered the opportunity to purchase a home. So, this is very important to call

[24:33] out. If if and when you are on the wait list, you are not automatically offered

[24:39] a home. We then have to double check that you are pre-qualified for your

[24:45] mortgage. So, this will be a hard pull of your credit. This will be the lender

[24:50] officially offering you a mortgage. Um, and we will recalculate your income

[24:55] if if it's been more than 120 days since the last time we calculated it. So, this

[25:01] is very important. Please do not make any big financial

[25:06] decisions um between the time that you apply and

[25:10] the time that you have the keys to your new home. Here's why. If your income

[25:16] changes, so say you get a bonus and you are now over that income limit, you do

[25:21] not qualify to buy this home anymore. On the same

[25:27] line, if you make big purchases, your credit score

[25:34] goes down, your debt goes up, your lender may disqualify you from a

[25:40] mortgage, and then you can't buy the home. So, please be very, very careful

[25:45] with everything related to your income, both income and expenses, from the time

[25:50] that you apply to the time that you have the keys to your new home.

[25:55] Great. Okay, let's get into the application

[25:58] process. So, the official application is an online form. However, you should not

[26:05] start this form until you've gathered all the required supporting

[26:08] documentation, which there's plenty of that. So, please

[26:13] do not start that until we've completed the application checklist. And so now

[26:18] what we're going to do is we're literally going to walk through the

[26:20] application packet and process and look at what the supporting documentation

[26:25] is that's required.

[26:30] Okay. So let's get into the application process and the actual application

[26:36] itself. So everything that you need to submit an application is on our website

[26:43] on our weight list application page. For quick reference, you can just click this

[26:47] link on the top uh banner. This will bring you to this page. Um

[26:56] application period has opened. It will close on November 3rd.

[27:02] We'll I'll review the application on November 5th. You'll have if there's any

[27:08] deficiencies in your application or errors, I will let you know and I will

[27:13] deny your application. If everything's good to go, I'll approve your

[27:17] application. If I deny your application, I will outline the remedies needed um to

[27:25] have your application be approved. So, you'll have until November 13th to

[27:29] submit any remedies. On nove November 14th, I'll issue the

[27:35] final administrative decision. This will be um the final decision

[27:43] of approval or denial. If you're approved, you will be entered into the

[27:48] weight list drawing. If you are denied, you can then submit an appeal if you

[27:54] wish. I will give you appeal instructions

[27:58] on November 14th whenever I issue the notice of final administrative decision.

[28:06] So then you'll have until the 26th to submit an appeal request. Your appeal

[28:11] request will then be heard at the appeal hearing right before the weight list

[28:16] drawing on December 1st.

[28:20] We will not be accepting late applications. Um but we will work with

[28:24] you during this remedy period to make sure that uh your application is ready

[28:29] to go. Everything that you need to submit this

[28:33] application is here on this page. If you see something that you

[28:40] can't find something, please let me know.

[28:42] Um the official application itself is an online form. So

[28:50] when you are ready to apply, you will come to this form and begin filling it

[28:55] out. However, like it says here, do not begin this application form unless you

[29:00] have read and understood the application packet, completed the application

[29:03] checklist, and you have all your supporting documentation ready to

[29:06] upload. If you require an alternative format, language, accommodations, or

[29:11] assistance to complete this application, please contact me hopefully prior to uh

[29:17] November 3rd so that we can get any accommodations that you need underway.

[29:24] So let's get into what the supporting documentation is that you need to

[29:30] upload.

[29:33] Um so where I would start with this whole process

[29:38] is the application checklist. So the application checklist is part of

[29:43] the actual application packet. The application checklist is a simple

[29:50] one-page reference guide of what you need to upload. The packet is about a

[29:55] 100 pages long of all of the information about these properties in this program.

[30:02] You do need to read this. Um, but I think maybe I'd start here

[30:09] and see what I need and then use that to work through the packet. So here is the

[30:17] checklist. This uh first half is items that every

[30:22] applicant needs to include in their application.

[30:27] The second half of this page gets into specific details and required documents

[30:33] for different types of income earners. Let's start with what everyone needs to

[30:40] do. So there is a $25 non-refundable application fee. You can pay that here

[30:45] on our website using this link uh where you'll submit your card

[30:50] information. Otherwise, you can pay in town hall with cash, check, or card.

[30:57] No matter how you pay, you need a receipt and you'll upload that receipt

[31:01] to your actual application form. And this is what it looks like, but we'll

[31:06] get into that in a second. This is the back end of it all. Um,

[31:11] once you've done that, you need a copy of your unexpired legal ID.

[31:18] Again, this all needs to be digital copies to upload.

[31:22] Um, you need to sign the weight list applicant agreement. That's on page nine

[31:26] of the application. So, if you go to the actual weight list

[31:30] application packet, you go to page nine. And this is an agreement that you make

[31:36] when you submit the application. This needs to be notorized.

[31:40] So once it's signed and notorized, you will upload it into a digital format.

[31:44] Save that in a folder to be ready to upload to the actual um online form.

[31:52] Mortgage pre-approval letter or proof of funds. So if you're not using a

[31:57] mortgage, I'll need to see that you have access to the cash to purchase the

[32:03] property. Um,

[32:08] and let's go to section 303.6 of the guidelines. This is in your application

[32:14] packet um to see exactly what you need for your

[32:17] mortgage pre-approval letter or your proof of funds.

[32:21] So, that is down in the guidelines section,

[32:30] section 303.6. I think we passed it actually.

[32:38] Nope. Sorry. Bear with me. Here it is. Mortgage pre-approval

[32:44] letter. Um,

[32:48] in this pre- approval letter, you'll be working with your lender

[32:53] to get pre-approved for a mortgage uh at or above the sale price of the unit that

[32:59] you are applying for. There's two really important things that you need to talk

[33:05] with your lender about when you're going through this process.

[33:08] Uh first, this is a deed restrict deed restricted or um it's a deed restricted

[33:15] property. Technically, it's affordability covenants, but they're

[33:19] effectively the same sort of legal documentation

[33:22] attached to these properties. Um there's an option to purchase that

[33:27] the Silverton Housing Authority has. And what that is is that if you go into

[33:31] foreclosure, the housing authority has the right to buy the property before the

[33:36] bank uh sells it. And so they need to be aware of and feel

[33:43] comfortable with the affordability affordability covenants on these

[33:46] properties. If they have any issues with anything in the covenants or the option

[33:51] to purchase, please let me know. Um, in addition to that, you do specifically

[34:00] need to call out that your pre-approval letter needs to include the estimated

[34:07] principal mortgage payment, interest mortgage payment, taxes, insurance, um,

[34:13] and the homeowners association fee is in the property information here in this

[34:17] packet. For the town homes, it's $60 a month. Single family, it's $35 a month.

[34:22] But collectively all these fees monthly expenses are referred to as PITI

[34:30] costs. And we will be checking that these costs do not exceed 35% of your

[34:37] gross monthly income. So, um, if these do exceed 35% of your gross monthly

[34:46] income, you may need to access down payment assistance or, uh, mortgage

[34:52] assistance in order to lower your monthly costs.

[34:58] Um, but we will be checking this. Uh, I'd honestly recommend talking to me

[35:04] if you think you're close to meeting that 35 or exceeding that 35 limit

[35:10] um prior to applying. If you're paying cash and you're not

[35:15] using a mortgage, I still need to see that your property taxes, insurance, and

[35:19] HOA fees do not exceed that 35% threshold.

[35:25] Um, again, your standard pre-approval letter does not usually include an

[35:30] estimated principal, interest, and taxes. So, you need to make this special

[35:35] request of your mortgage lender.

[35:39] You also need a certificate of completion of a HUD certified home buyer

[35:43] education course stated within the past 3 years. There are no exceptions to

[35:47] this. It doesn't matter if you have already owned a home in your life or you

[35:51] currently own a home. This is a requirement of our one of our funders

[35:56] and so this ju this this needs to be met. Um I'm happy to help you find a

[36:02] course to complete um if you have not done so already.

[36:09] Need to sign authorization to release information that's on page 11 of your

[36:12] application. This also needs to be notorized.

[36:18] So, this and the weight list applicant agreement need to be notorized, signed,

[36:22] and uh turned into digital copies to upload to your form.

[36:28] Um, I need your most recent Oh, let me actually go back to this. So the

[36:32] authorization to release information is something that we can give to your bank,

[36:36] your employer, um

[36:40] anyone who has pertinent information to your income or assets

[36:45] in order to verify that you are qualified.

[36:53] I need a copy of your most recent filed federal tax return, including any

[36:58] schedules or attachments. Um, this should be pretty easy.

[37:04] Okay, I think you've heard me mention this a

[37:08] couple times. We are calculating your income. And to calculate your income,

[37:14] we're looking at all sources sources of income, including any income that you

[37:18] earn from your assets. When we talk about assets, we're talking about um

[37:25] cash value

[37:30] uh things that you that are cash or could easily be converted to

[37:36] cash. So, we're not looking at like your car or your snowmobile. We are looking

[37:43] at your money in various different accounts. So that's your savings

[37:49] accounts, your checking account, checking accounts, um retirement,

[37:56] investment, mutual funds, and this also includes PayPal, Venmo, Cash App, um

[38:02] anywhere where you store money, we need to see that store or receive or send

[38:09] money. So

[38:13] for your checkings accounts, we need six months most recent statements from all

[38:17] checkings accounts. Um and

[38:24] for savings and investment, we need two months most recent.

[38:29] Um it's okay if it's typically investment and retirement accounts are

[38:34] in um quarterly statements.

[38:39] Uh, I don't know if that'll line up with our

[38:42] application period actually, but a minimum of two months. You can include

[38:47] more, but at least a minimum of two months of the most recent statements

[38:51] from all asset accounts. When you are looking at these accounts,

[38:58] you need to know how much money you're making from them. So, say your money is

[39:03] sitting in a savings account and there is a I don't know 3 4% interest rate. We

[39:11] need to know how much money your money is making because that is considered

[39:15] income. And so, let's go look at the application.

[39:21] Um, this is the back end. Yours will look different, a little bit different

[39:26] than this. This is the back end of the application.

[39:30] Um this is where you'll upload all your

[39:33] files, applicant information. This is where we

[39:36] start to get into um income sources. So you need to know name of your employee

[39:43] like the business name, type of employment is W2, 1099, 1099 or other

[39:48] blah blah blah. Okay, we're not going to go into detail but

[39:52] and then down here there's other income sources.

[39:56] So this is usually fixed income such as you know retirement benefits or

[40:03] child uh alimony

[40:07] um income from your assets. This is what we're talking about. Oh no. Okay. You

[40:13] will select how many uh types of accounts you have. If you have more than

[40:18] 10, you need to contact me prior to

[40:21] beginning this application. So for asset name, you're going to put

[40:25] like your checkings account at uh let's say Wells Fargo. So you'll click

[40:30] checkings, the current balance, and then here you're going to upload your

[40:35] statements and your calculated interest in

[40:39] dividends earned for the period that you are uploading the statements for. So if

[40:46] you're doing your checking account, I need to know how much interest you've

[40:49] earned in the past six months. If you're doing your savings account, how much

[40:53] interest have you earned in the past two months?

[40:57] And then um

[41:01] retirement and investment is either that two months or quarterly

[41:07] depending on which number of statements you upload.

[41:11] If you have questions about this, please call me. This is very confusing, but I'm

[41:16] here to help you. So, let's say that you've earned 1.2 to sorry $1.20 in

[41:22] interest over the past 6 months from your checking account. You'll put 1.2 in

[41:28] interest over the past 6 months. And then what I'm going to do on the back

[41:31] end is automatically annualize this interest based on these statement

[41:38] intervals. Um, so you need to know how much

[41:42] interest you're earning on each of your accounts prior to beginning this

[41:45] application. or you can do it while you're submitting the application, but

[41:50] this will just make your life a lot easier if you do it ahead of time.

[41:56] Okay, this is where it gets into unique circumstances for different types of

[42:01] income that you receive. So, if you're a wage earner and need an employment

[42:06] verification form, this is on page 12 of your application.

[42:10] This needs to be submitted first or completed first half by you, second half

[42:15] by your employer. Very important, you need to tell your employer that they

[42:19] need to share this form with me once it's completed to my email before

[42:25] um before

[42:29] November 3rd or on November 3rd. Um you cannot submit this. This has to come

[42:34] directly from your employer because I need third party verification.

[42:41] Um, I need copies of all your W2s and 1099s from the past 12 months. This is

[42:46] important with everything. I actually should have put this up here. I will go

[42:50] and add it up here. Please redact your social security number from all of this.

[42:56] Um, I once I receive it and I find a social

[43:01] security number, I will redact it. But um I strongly recommend redacting that

[43:07] prior to uploading it to this form. Our form is a secure portal, but um just in

[43:13] case and I don't really want to see your social security number, so please redact

[43:17] your social security number from everything. Um I need copies of your two

[43:22] most recent payubs from all current employers and previous employers from

[43:25] the past 12 months. So say you stopped working a job a couple months ago,

[43:30] you're not working there anymore. It doesn't really matter. I still need to

[43:33] see how much money you've made in the past 12 months.

[43:37] Um, if you're self-employed, I need a copy of your business license, a profits

[43:41] and loss statement. Um, this if you're like a self- proprietor,

[43:48] that's a little different. Please talk to me.

[43:53] Moral of the story here is talk to me before you submit your application.

[43:57] Everyone's situation is super unique. Um, and to make sure that you're

[44:01] submitting everything that applies to you and your application, please talk to

[44:06] me ahead of time. And then in addition to your most recent filed federal tax

[44:11] return, I need your two most recent, so the past two years with all schedules

[44:16] and attachments. If you're on a fixed income or of income sources that aren't

[44:21] from a wage, I need um award and benefits letter if that's applicable. If

[44:29] you get rental income, I need to see where that money goes.

[44:34] Um, proof of deposits. This might not be something that you have to like double

[44:38] upload because it should already be reflected in your account statements up

[44:43] here. Um, but just note that I will be looking for this. And then if you're

[44:50] applying for bonus qualification entries,

[44:53] um if you're doing the local workforce or vital workforce, your employment

[44:58] verification form, which you will have already completed, will count for your

[45:03] bonus qualification entry supporting documentation. However, if you're

[45:06] applying for resident of San County, I need copies of leases, your proof of

[45:10] rent payments, and or voter registration. Um,

[45:16] basically I I need really good proof that you have lived here for however the

[45:21] amount of time that you are claiming for your entries. If you're qualified

[45:25] disabled, you need to submit an accessibility needs assessment or

[45:29] reasonable accommodation. If you need an accommodation for any of this at all,

[45:34] this reasonable accommodation form will also apply. That's on page 15

[45:40] of application packet and it's several pages but um

[45:46] you can email this to me

[45:51] prior to submitting the application if the reasonable accommodation is for the

[45:56] application itself. But if it's for the bonus qualification you you can just

[46:00] submit this with your application. Okay, that is the application form. That

[46:05] was a lot. Please call me if you have any questions.

[46:09] Okay. Uh let's get go over the rest of the

[46:13] application packet. Um these are linked for easy access. So you

[46:19] can just click on this table of contents to jump down to where you need to go.

[46:25] Um we've basically gone over these first few sections. Uh property information

[46:31] we've sort of touched on. This is where the HOA fees are. Um, you'll need to

[46:36] know this again for your monthly payment.

[46:41] Uh, 35% threshold. This has details about, you know, the square footage,

[46:47] um, sale price, uh, area needing income limit.

[46:54] Great. Um,

[46:57] then these are additional application

[47:02] resources and information. I strongly strongly recommend that you work with

[47:07] Chaffa and a participating lender for their mortgage for your mortgage, sorry.

[47:14] Um, all of these entities have down payment

[47:18] assistance and some sort of mortgage assistance.

[47:23] Um, these guys may be the key to get you below that 35% of your monthly income

[47:30] to housing expenses threshold. This is your program guidelines. This is

[47:38] specific to the Anvil Town Homes. This is 300 sections.

[47:43] Sometimes it references um sections like section 109 or 110. So these actually

[47:51] live in the

[47:56] like actual guideline document. So, in your application packet, I just pulled

[48:02] um the 300 section to put it into the application packet, so you didn't have

[48:07] to go looking for uh details, but the guidelines are a

[48:14] really big document. Um all the 100 sections apply

[48:21] mostly. Uh however, the 300 sections takes

[48:26] priority. So if there's ever like some some

[48:32] um provision or requirement where the 300 sections and the 100 sections are in

[48:38] conflict, the 300 sections is takes priority.

[48:42] Um but anyways, if you're looking for it like, hey, what does the rental process

[48:48] look like? So again, if you want to rent your house, you have to uh get

[48:53] permission from the housing authority first. And this will be under the

[48:57] ownership use and occupancy um rental procedure. So these are important things

[49:02] that you'll be referencing and using during your both the application process

[49:07] and when you own the home. Okay. Um

[49:14] we've touched on everything here. Please read all of this. Um you can do it. It's

[49:20] going to be worth it. This is a big deal and you need to know what you are

[49:25] signing up for. Okay. I did include the Declaration of

[49:31] Affordability Covenants in your packet as of right now. So, it's uh October 5th

[49:37] when I'm recording this. These have not yet been um finalized. This is a draft.

[49:44] Uh they're not going to change too much. Our legal team is reviewing them right

[49:49] now. Um,

[49:52] please read this. It's a dense legal document.

[49:56] We've gone over the basics of it, but um,

[50:01] you need to read this. So, some things that you need to know. I'll just call

[50:05] out. Uh, you have to maintain homeowners insurance at all times. We'll be

[50:09] checking this every year. If you go into foreclosure, we have an option to

[50:13] purchase before the bank sells it. Um, we'll be doing an annual compliance

[50:18] check to make sure you have the insurance and that you're using this

[50:21] home as intended. And, um, like we talked about earlier,

[50:27] there's an appreciation cap. It's all in here. I'm not going to scroll and find

[50:30] all of it. But in addition to the appreciation cap,

[50:36] there's also a resale fee that the housing authority gets when you sell the

[50:40] home, which is 1.5% of that sale price. And when you close on your house, you

[50:47] will sign an acknowledgement of these covenants. Um,

[50:51] even if you don't acknowledge these covenants, you will still be subject to

[50:56] them when you own the home. So, the

[51:00] acknowledgement is uh it's not in here, but

[51:05] um you are agreeing to these covenants when

[51:10] you buy this home. In addition to the housing authority

[51:15] covenants, the state also has covenants on these properties. This is because

[51:20] they uh granted us over half a million dollars to help subsidize them. This is

[51:26] a an agreement that's mostly between the housing authority and the state, but it

[51:32] runs with the land. So that means it's connected to the land and the property.

[51:37] Um, this

[51:41] honestly has no different um

[51:47] restrictions or requirements than the housing authority. You will notice that

[51:56] this document is only good for 30 years. So once that expires, that honestly

[52:03] means nothing to you. um because the housing authority

[52:09] covenant will still be in uh it's in perpetuity. So the the

[52:14] housing authority covenant will still be in effect.

[52:19] Um these homes will be a part of an HOA

[52:24] because these units are attached units. There's shared elements. Um an HOA will

[52:29] be established for insurance purposes. So, in addition to your homeowner

[52:32] insurance, there's also HOA insurance because these are technically one

[52:37] building. So, you have separate properties, but they're still in one

[52:41] building. And the HOA will

[52:46] um cover the repairs needed for common elements such as like the roof,

[52:50] sighting, landscaping, and utility lines. The HOA fees will be

[52:54] approximately $60 a month for the town home units and $35 a month for the

[52:58] single family home units. Usually the cost and that's uh the cost

[53:05] of uh internet sorry fiber internet is included in your HOA. That's because we

[53:11] got a really good 10-year deal. Um so each unit will be paying $35 for

[53:19] internet every month. Um town homes will pay $60 a month.

[53:25] Single family will pay 35. These are estimates, but we're expecting them to

[53:31] be really close to 60 or 35. But the single family is only attached

[53:38] to this HOA through um the fiber internet services. So, they're not the

[53:44] single family is not going to be paying into, you know, future roof expenses for

[53:48] the town homes. Um

[53:53] this is also a draft. It will be updated here shortly as the legal team approves

[53:58] it and once we record it. Um, okay. That covers everything

[54:05] hopefully. If you have further questions,

[54:09] please contact me. I strongly recommend that you and I sit down before you

[54:14] submit an application just to make sure we know

[54:19] that you have everything that you need. Um,

[54:23] great. I hope this was helpful. It could have been really rambly. Um,

[54:30] but I think it is helpful to hear someone talk you through it rather than

[54:35] drowning in all of this. I understand that this is a ton of information. This

[54:39] application is a really big deal and um we are here to support you through the

[54:46] whole thing. So congratulations,

[54:50] you've made it through your informational webinar

[54:54] and uh we will be in touch. Thanks.

Silverton Housing Authority - Anvil Townhomes Ownership Application Overview

Transcript