The property may not be purchased as a rental property. The owner(s) of the home must be full time residents who occupy the home as their primary home and occupy the home for 10 months of any calendar year.
The household must demonstrate financial capacity to purchase the BMR. This will include:
- A minimum 3% down payment ($20,300) is required. All funds must be in a bank, trust, retirement, or investment accounts (no mattress money/cash is allowed). The buyer should also have approximately $15,000 for closing costs and reserves. Accordingly, a household should have access to approximately $35,000 in liquid funds to consider purchasing this property. Reserve requirements may be held in accessible retirement accounts (401K, 403B, etc.). Gifted funds may be provided by first and second degree relatives. All down payment, reserve, and gift funds must be sourced and maintained in institutional accounts.
- Minimum FICO score of 640 for all non-dependent household members required to be on title. Alternative documentation will be considered for households with no credit.
- The cost of owning the home in combination with your current monthly personal debt service cannot exceed 45% of your gross earnings.
Below Market Rate (BMR) homeownership comes with restrictions and responsibilities that BMR owners must adhere to. BMR ownership Restrictions commence on the date of purchase and will be in place for a forty-five (45) year term. Restrictions include:
- The BMR must be sold at an affordable resale price that the City assigns at the time of the resale.
- The BMR must be sold to an eligible buyer whom the City must approve.
- There are refinance guidelines and restrictions. All refinances must be approved by the City.
- The property must be maintained in good condition at all times.
- Restrictions disallow the property from being rented out.
- There are guidelines and restrictions in passing title to an heir and any other non-BMR Program approved individual(s). The City must approve any transfer in title.
To learn more about BMR home ownership, please click on this link: https://www.myhomegateway.org/what-is-a-bmr-.html
Financial Capacity
Maximum Household Income
Purchase Contract and Close of Escrow
Program Lottery Preferences
The maximum sales price is projected to be close to $677,750. Final pricing will be announced prior to the lottery.
A HUD approved homebuyer education course certificate is not required to submit a Lottery Application. However, all adult household members on title must have secured a certificate of completion within the past twelve months prior to close of escrow. Press this link to access sources to secure and complete your approved education requirements. BAAHA encourages applicants to conduct their own search for HUD approved homebuyer education courses on the internet. A Certificate is not required to apply for the lottery.
The City of Pacifica (City) contracts the Bay Area Affordable Homeownership Alliance (BAAHA www.myhomegateway.org), to administer the sale of the 379 Sycamore St. BMR. BAAHA’s administrative duties include, and are not limited to: BMR lottery application screening, managing the lottery, overseeing property sales activities, overseeing City BMR Program approval underwriting, and escrow related activities. Additional questions related to the sale of this BMR should be directed to BAAHA by email at info@myhomegateway.com.
379 Sycamore St., Pacifica / Cypress Walk
1. Determine if you are interested in purchasing the 379 Sycamore St., Pacifica BMR
- Read all the information provided prior to taking your next steps. Be certain you understand the restrictions, guidelines, and procedures required to become a BMR owner.
- Be certain you are interested in buying a BMR. Understand the implications of owning a BMR property. Click this link to get an overview of BMR ownership.
- Determine if you are interested in this specific property. BAAHA suggests you drive by the neighborhood. A detailed view the layout and pictures of the condominium will be provided on this webpage by the second week of May 2024.
2. Submit a BMR Lottery Application – You can obtain a BMR Lottery Application by downloading a PDF copy (by pressing this link) or by requesting an application by email at info@myhomegateway.com. Make certain to state in the email that the application is for the Pacifica BMR. Applications must be filled out in their entirety and signed. Incomplete applications will not be accepted. Upon completing the review of your application, BAAHA will issue you a preliminary lottery eligibility and preference determination. We urge that applicants immediately submit their application so that BAAHA has time to process your application and preference status. Depending on the volume of applications received, responses from BAAHA regarding your application status may take up to five business days.
Property Description
Upon securing 1st loan and City Program approval, the applicant will be required to submit a purchase contract. Once a purchase contract is ratified (signed by seller and buyer), it will take approximately 30 to 45 days to close the purchase escrow and secure ownership to the BMR home.
BAAHA will be providing additional detailed instructions to lottery winners as they enter various stages of the Program Approval and Property Purchase process.
The following steps must be taken to purchase the Pacifica 379 Sycamore St. BMR:
- Read all the information provided on this webpage. Be certain to understand the restrictions, requirements, and procedures to apply to participate in the Pacifica 379 Sycamore St. BMR lottery. Questions regarding property and program information provided in this webpage must be directed by email to BAAHA at: info@myhomegateway.com
- Download, fill out, and submit a Lottery Application. Questions regarding the application must be directed by email to BAAHA atinfo@myhomegateway.com
- BAAHA screens all lottery applications to determine applicant’s lottery eligibility
- BMR lottery is conducted
- The top ten highest ranked lottery winners will be invited to view the property
- The top five highest ranked (1 through 5) lottery winners will be required to secure 1st loan approval from a BAAHA certified 1st mortgage lender
- Upon securing 1st loan approval, BAAHA will complete underwriting the file to be submitted to the City for BMR Program Approval
- The top ranking lottery winner will enter into a purchase contract, and undergo all required steps to purchase and close the BMR transaction. The 1st lender loan approval, Program approval, and purchase process to close the transaction may take between sixty to seventy-five days (or more).
Viewing the Property
Program participants may be disqualified from purchasing the BMR if their housing cost ratio is either below the minimum or over the maximum ratio allowances.
A housing ratio is the percentage relationship between total monthly costs to own the property in relation to the gross monthly household income that the City and/or first lender apply towards the housing ratio calculation. Monthly housing costs include the principal and interest portion of the mortgage payment, property taxes, property and mortgage insurance, and home owners’ association fees (HOA). The housing ratio is calculated by dividing the total housing costs by the gross monthly household income. The City and 1st lender derive the gross household monthly income applied towards the ratio calculation. Gross household income includes the household’s total income prior to all deductions from their payroll earnings. Program eligible households may not have a floor housing ratio that falls below 28% (lowest allowed) nor exceed the maximum housing ratio of 45% (highest allowed).
Your Next Step
Program Eligibility Requirements
Upon securing first lender approval, BAAHA and the City will conduct a thorough underwriting and analysis to determine the applicant’s BMR Program eligibility. Program eligibility will be based on the applicant fulfilling and meeting the above referenced Program guidelines. For verification and reconciliation purposes, households will be required to provide supporting documentation to BAAHA, including and not limited to copies of:
- Up to two months of most recent bank and investment/retirement account statements
- Two years of filed and signed tax returns (2023 and 2022)
- Payroll information, inclusive of W-2s, two or more most recent paycheck stubs from of all non-dependent household members, and verification of employment
- Forms of identification which verify your current address of residency
Below Market Rate
Home Ownership Opportunity
379 Sycamore Street
Pacifica / Cypress Walk Neighborhood
2 Bedroom, 1 1/2 Bathroom Two Level Townhome
2 Car Garage / 1,200 Square Feet (per tax records)
Approximate Projected Sales Price: $677,750
Ownership of the BMR home requires that a household’s gross combined income may not exceed 120% of San Mateo County’s Median Income, adjusted for household size. Gross income includes the household’s total income prior to all deductions from their payroll earnings. For self-employed individuals, the City will determine net income by reviewing and reconciling past tax returns, bank statements, and profit and loss statements. Gross maximum household incomes are based on household size and cannot be greater than the amounts listed below:
Questions and requests for additional information must be submitted in writing by emailing BAAHA at info@myhomegateway.com. Make certain to state that you are inquiring about the Pacifica BMR and provide us with your phone number. BAAHA has a strict policy that communications and questions are documented and directed to BAAHA by email at info@myhomegateway.com.
The minimum household size allowed to purchase the property is two (2) people and the maximum household size is five (5) people. All non-minor household members who are not dependents must be on title when the property is purchased. Qualifying dependents must be designated on 2023 federal tax returns. Qualifying household size influences qualifying household income. Applicants must identify all household members that will be living in the BMR on their lottery application. A spouse may not be a dependent. All household members that are 18 years of age or older are classified as non-dependents, unless they are full time students. Full time students claimed as dependents may not be older than 24 years of age. Current school transcripts will be requested for all 18- to 24-year-old household members that are claimed as dependents.
Occupancy of Home
All eligible applicants will be entered into a lottery. Lottery applicants with the highest level of preference points will secure top priority ranking in the lottery. The lottery is targeted to be conducted towards the first week of June 2024. A firm date of the lottery, with additional lottery related instructions, will be provided three working days prior to the lottery.
Located in Pacifica’s quiet Cypress Walk neighborhood and cul-de-sac area. A roomy, well laid out 1,210 square foot two level townhome with 2 bedrooms 1 ½ baths and attached 2 car garage. Easy access to 280/101 and Highway 1. Short commute to San Francisco and minutes away from BART stations and Caltrain. This home is move-in ready and minutes away from the beach and San Andreas Lake with an abundance of hiking trails. Virtual 3D photo tour of the property is scheduled to be available on this website sometime towards the second week of May 2024
BAAHA
Applicants must meet the following eligibility requirements to purchase the City's Below Market Rate home.
Up to $75,000 in financial subsidies may be accessible for eligible Pacifica Sycamore BMR buyers. These subsidies are in the form of up to $60,000 in forgivable grants over a five-year term and a $15,000 grant at the time of purchase. The grants are made available through the Federal Home Loan bank WISH program and through a BAAHA Certified Community Reinvestment Act (CRA) 1st lender. Subsidies will only be provided to borrowers who secure a 1st loan with BAAHA’s certified CRA lender(s).
BAAHA will provide eligible Pacifica BMR Program Lottery Applicants a preliminary assessment of subsidy accessibility upon reviewing a complete submitted Lottery application. BAAHA’s preliminary assessment of subsidy eligibility is not binding. Subsidy approval can only be finalized upon securing a first loan approval from BAAHA’s certified lender. Subsidy approvals are based on a multitude of parameters, including and not limited to the household gross annual income, down payment, and credit rating. Information regarding BAAHA’s certified lender will be provided to applicants upon reviewing a submitted application, and establishing a preliminary determination that the applicant is eligible for the above referenced homebuyer financial subsidies.
The City has established lottery BMR Program preferences to promote ownership for first time homebuyers who reside and work in the City of Pacifica. Maintaining Pacifica live and or work preferences are not required to apply. A total of up to 15 preference points are assigned to
BMR Lottery
BAAHA is working to deliver a professionally composed virtual 3D tour of the property’s exterior and interior. The virtual tour will most likely be available on this website by sometime around the second week of May 2024. The highest ranked lottery winners will be able and required to visit and view the property prior to entering into a purchase contract. Do not disturb the current occupants.
The Purchase Process
- First time homebuyers – all adult members on title must be first time homebuyers. To be deemed a first time homebuyer, the adult household member may not have owned or have been on title for a real property for three years prior to the Lottery Application date. First time homebuyer households are assigned 10 preference points.
- Live or Work in Pacifica – at least one adult member on title must live or work in the City of Pacifica. Self-employed individuals must have a Pacifica business license with their business located in Pacifica to claim a work preference. A household meeting the Pacifica live or work preference is assigned 5 preference points.
Questions and More Information
City Program Approval
Household Size
Lottery winners must secure a 1st mortgage loan approval form a BAAHA certified 1st mortgage Lender. A BAAHA certified 1st mortgage lender must be able to approve and fund their first loan in conjunction with the City’s BMR Program. BAAHA can direct lottery winners to Certified 1st lenders.
The top five ranked (1 through 5) lottery winners must secure 1st lender approval prior to proceeding forward with securing BMR Program Approval. The top ranked lottery winners will be required to:
- Find a lender who is currently Certified, or can be Certified by BAAHA to finance a City of Pacifica BMR purchase. If a lottery winner does not have a 1st lender in mind, BAAHA can direct them to Certified lenders that have extensive experience originating BMR purchase loans, and meet City lender approval requirements.
- Secure 1st lender approval. A lottery winner may only proceed forward to enter into a purchase contract and securing a City BMR final Program approval after securing a first loan approval to purchase the BMR.
Financial Subsidies
Do Not Disturb the Occupants of the Property. A virtual 3 dimensional tour will be provided on this website in the near future. Top ranked lottery winners will be required to view the property prior to proceeding with the purchase process.
Below Market Rate (BMR) Homeownership
Prospective homebuyers interested in purchasing the BMR must submit a Lottery Application. Lottery Applications must be submitted to BAAHA (see below) by no later than 5:00pm Friday May 24, 2024.
Detailed application instructions are included as part of BAAHA’s application package. Be certain to read and follow the instructions. Incomplete applications missing required information will not be processed. Inaccurate or false information provided in a Lottery Application will disqualify the applicant from participating in the lottery and/or securing final BMR Program approval to purchase the BMR.
BAAHA reviews the Lottery Applications and provides applicants a preliminary determination regarding eligibility to participate in the lottery. Applicants will have an opportunity to appeal an ineligible determination for reconsideration. Applicants who pass the preliminary eligibility screening may participate in the lottery. Securing preliminary eligibility determination to participate in the lottery is not a Program approval. Top-ranked lottery winning applicants will be required to go through a comprehensive Program approval underwriting process.
Click this link to download a PDF copy of the BMR Lottery Application, which includes comprehensive instructions.
Housing Costs and Ratio Requirements
HUD-Approved Homebuyer Education
First Lender Approval
| Household Size | 2 | 3 | 4 | 5 |
|---|---|---|---|---|
| Maximum Household Income | $168,000 | $ 189,000 | $210,000 | $226,800 |