[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.