BMR Ownership Program Application Process Overview

 

  • Applicant reviews informal program overview on Mayor’s Office of Housing and Community Development (MOHCD) website. Applicant reviews legal program rules in the PDF iconInclusionary Procedures Manual 051013.pdf.
  • Applicant learns of the availability of new or resale BMR units in one of the following ways:  (1) the Current Homeownership Listings page on the MOHCD website; (2) the Housing Email Alert Subscription; (3) a nonprofit agency called www.homeownershipsf.org; or, (4) marketing conducted by the developer of the BMR units.  Developers of BMR units must conduct a 45-day marketing period for new units and 21-day marketing period for resale units.
  • Applicants attend a certified first-time homeownership workshop before applying for the unit from an approved local housing counseling agencies and a one-on-one counseling session in order to apply. All BMR applicants who will be on title and loan to a BMR unit must obtain a Verification of Homebuyer Education Completion prior to applying. Visit www.homeownershipsf.org for a list of upcoming workshops. The Verification of Homebuyer Education Completion is valid for 1 year from the date of issuance. In the case of buyers receiving down payment assistance from the City, certificates must not be older than 6 months from the time of closing on the unit.
  • Applicant obtains a loan preapproval before applying for the unit through an approved BMR lender.
  • Applicant downloads MOHCD application from MOHCD website or requests a paper copy of application from developer’s sale agent.
  • Applicant submits a complete BMR application packet directly to sales agent by a specified deadline and before a public lottery for the units.  The deadline is stated on unit posting. (Applicants for ownership units must not submit applications to MOHCD.)
  • When submitting application, sales agent issues one-half of a lottery “ticket” to applicants and then enters applicant information on applicant tracking sheet.
  • Public lottery is held. MOHCD conducts lottery with developer. Applicants are not required to attend. List is sorted by program preferences and then finalized. Note that not all preferences apply to each available BMR unit.
  • Sales agent contacts lottery winners with results. Applicants may contact sales agent for results, as well.
  • Sales agent compiles and sends completed buyer application packets to MOHCD for qualification for the program.
  • MOHCD reviews and approves/disapproves buyers within 15 working days of receipt of a complete packet from sales agent.
  • BMR enters in contract within 10 business days of MOHCD approval. Contact grants buyer at least 60 days to close with a 45 day financing contingency.
  • Buyer secures a loan for financing the unit through an approved BMR lender who is listed on the MOHCD website.
  • Buyer’s lender submits sales contract, final fair market appraisal, preliminary title report, final loan applications (1003 and 1008), Good Faith Estimate and Loan Commitment, and other documents to MOHCD.
  • MOHCD drafts closing documents to be reviewed and signed by BMR buyers after receiving a complete and accurate loan, appraisal, title report and sales contract packet, etc. from the lender.
  • Title Company works with BMR buyer to review and sign documents that restrict the resale of the BMR unit and that establish a lien on the property. Buyer will also sign all other closing documents associated with the sale.
  • Title Company returns signed, notarized and recorded closing documents to MOHCD.
  • Unit closes escrow and buyers move into unit.
  • Unit is subject to annual monitoring.

For specific questions regarding a current development and submitting your application, please contact the development or developer’s sales team directly.