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Housing Programs
The City of Menlo Park Housing and Redevelopment Department was eliminated when the State of California dissolved redevelopment agencies in January, 2012. The City of Menlo Park continues to provide the Below Market Rate (BMR) housing program by contracting with the Palo Alto Housing Corporation (PAHC). Existing loans made by the City are now serviced by Hello Housing.
Who is Palo Alto Housing Corporation?
Palo Alto Housing Corporation (PAHC) is a nonprofit organization located in Palo Alto that develops, acquires and manages affordable and subsidized housing. The organization also administers the BMR purchase and rental programs for the City of Palo Alto and City of Menlo Park. These inclusionary housing programs strive to provide more affordable housing to low and moderate-income residents and employees of these communities. This is achieved through designating a given share of new construction as affordable and selling to eligible households at a below-market-rate sales price. In order to benefit more households and preserve the inventory of affordable homes, use and resale restrictions are recorded with each BMR home purchase and rental units as applicable.
Contact PAHC for information if you have a question about the availability of affordable units and how to get on the waiting list. http://www.paloaltohousingcorp.org/bmr/MPindex.html
Who is Hello Housing?
Hello Housing is a nonprofit organization located in San Francisco that develops affordable housing and services for underserved communities. Hello offers a variety of housing development, management and administration services to help local governments achieve their housing goals. Hello Housing will oversee the financial portion of the BMR program and is who to contact for information if you have questions about your existing Purchase Assistance (PAL) loan, Emergency Repair (ERL) loan, or Rehab loan with the City of Menlo Park. http://www.hellohousing.org/stewardship/cityofmenlopark/
Unfortunately, because of the elimination of the Housing Division, the City of Menlo Park is no longer issuing new housing loans.
Effective March 1, 2013, all loan payments will be administrated by Hello Housing. If you need assistance or have questions regarding your PAL loan, ERL Loan or Rehab loan with the City of Menlo Park, please contact Matt Warner at Hello Housing. He can be reached at (415) 689-7746 or via email at matt@hellohousing.org. Please submit payment to:
Hello Stewardship – MP
1230 Market Street #309
San Francisco, CA 94102
BMR owners may refinance the debt on their property at any time following purchase; however, they must contact the City's BMR contractor, PAHC at (650) 321-9709 prior to a refinance or equity line. PAHC will provide the owner with clear instructions to ensure program compliance. At that time, and at any other time the owner requests it, PAHC will provide the owner and/or the lender with the current BMR value of the home, in accordance with the formula specified in the BMR Deed Restrictions. Only PAHC can determine the appraised value of a BMR property. It is the owner’s responsibility to inform their lender that the property is a BMR property. BMR owners are not allowed to take out loans against their property that exceed the BMR value of the home.
Once PAHC has provided the appraisal value of the BMR property, the owner must contact Matt Warner at Hello Housing, (415) 689-7746 or email at matt@hellohousing.org to start the refinancing process. Hello Housing will provide the lender a letter stating the BMR restricted value of the home and any other documentation requested.
Lenders will be required to submit the following documentation to Hello Housing as part of the refinance eligibility screening:
- 1003 completed loan application
- 1008 or other loan underwriting form indicating amounts and terms of all financing
- A preliminary title report
- A preliminary HUD 1
Refinance package submittals can be emailed to matt@hellohousing.org or mailed to:
Hello Stewardship – City of Menlo Park Refinance
1230 Market Street #309
San Francisco, CA 94102
A $400 fee will be charged to the homeowner and due to the City of Menlo Park upon closing in order to cover a portion of the costs associated with eligibility screening and preparation of refinancing documents.
At any time following home purchase, PAL borrowers may request that the City subordinate to a refinanced senior mortgage(s). If the borrower chooses to refinance, he/she must either pay off the PAL or meet PAL Program requirements for subordination to a new senior mortgage(s).
Per the PAL Program Guidelines, the City’s PAL will subordinate to a refinanced senior mortgage(s) if the borrower meets all of the following conditions/requirements:
- the refinancing of the existing senior mortgage(s) is for the purpose of reducing monthly housing expenses; and
- the refinancing is for no more than the amount of the balance of the senior mortgage(s) plus the cost of refinancing; and
- no cash will be taken out of the refinance; and
- there is sufficient equity in the property so the total loans-to-value is at the same amount after the refinance as it was when the property was purchased.
If all four conditions above are applicable, the owner should contact Matt Warner at Hello Housing, (415) 689-7746 or email at matt@hellohousing.org to start the subordination process. Hello Housing will provide the lender a letter stating the BMR restricted value of your home and any other documentation requested. Sample subordination and program documents are available for lenders upon request to help determine if the 1st loan can work in conjunction with the City of Menlo Park's BMR program.
Lenders will be required to submit the following documentation to Hello Housing as part of the subordination eligibility screening:
- 1003 completed loan application
- 1008 or other loan underwriting form indicating amounts and terms of all financing
- A preliminary title report
- Property Appraisal Report (if not a City of Menlo Park Below Market Rate home). If the property is a Below Market Rate (BMR) home, the City will provide the appraised value of the home per the BMR Deed Restrictions and BMR Program Guidelines
- A preliminary HUD 1
Subordination package submittals can be emailed to matt@hellohousing.org or mailed to:
Hello Stewardship – City of Menlo Park Refinance
1230 Market Street #309
San Francisco, CA 94102
A $400 fee will be charged to the homeowner and due to the City of Menlo Park upon closing in order to cover a portion of the costs associated with eligibility screening and preparation of subordination documents.
The resale restrictions of the BMR home are outlined in the Agreement and Deed Restrictions Regarding Resale Controls for Below Market Rate Property made between the BMR property owner and the City of Menlo Park at the time the unit was purchased. If the owner wishes to sell his/her home, the seller first needs to issue the City's BMR contractor, PAHC, a “Notice of Intent to Sell" by certified mail. Please send the "Notice of Intent to Sell" to:
Palo Alto Housing Corporation – City of Menlo Park Resale
725 Alma Street
Palo Alto, CA 94301
The unit must be in good repair and salable condition, or the cost of rehabilitating the unit will be reimbursed to the City out of the proceeds of the sale. The definition of “salable condition” for any given unit shall be provided on a case-by-case basis following the City’s inspection of the unit, and shall be at the discretion of PAHC. “Salable condition” shall refer to the general appearance, condition, and functionality of all: flooring; painted surfaces; plumbing, heating, and electrical systems; fixtures; appliances; doors; windows; walkways; patios; roofing; grading; and landscaping. In addition, the City reserves the right to withhold the cost of having it professionally cleaned from the seller’s proceeds. Once cleaning is complete, the seller will be refunded any difference between the amount withheld and the actual cost to clean the unit.
Once the City has determined that the unit is in good repair and salable condition, and the City has set the price for the BMR unit, PAHC will state in writing that the one-hundred and eighty day (180) period for completing the sale of the BMR unit may commence.
Lenders Familiar with the City’s BMR Program
Bank of America
Janet Velez
1001 Page Mill Rd., Bldg 3
Palo Alto, CA 94304
Office: (650) 846-4749
Cell: (415) 717-0042
janet.velez@bankofamerica.com
Meriwest Mortgage Company, LLC
Curtis Linville
5615 Chesbro Avenue, Suite 110
San Jose, CA 95123
(408) 363-3460
clinville@meriwest.com
Wells Fargo Bank
Patty Mendoza
1440 Chapin Ave., Suite 360
Burlingame, CA 94010
Office: (650) 356-2189
Cell: (650) 759-5752
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