Process for Reselling a BMR Unit

The Mayor's Office of Housing and Community Development (MOHCD) requires owners of Inclusionary Affordable Housing Program BMR units to follow the ensuing process when marketing and selling their units. These requirements are documented in the City of San Francisco Residential Inclusionary Affordable Housing Monitoring Procedures Manual 2013 ("Procedures Manual"). The Procedures Manual governs all MOHCD BMR units. Please note that the typical resale process can take up to130 days in total. Please plan accordingly when selling your BMR unit.

Step One: Contracting with a Realtor

BMR owners must contract with a realtor to list the BMR unit on the Multiple Listing Service (MLS). This listing ensures that the unit will be broadly advertised. MOHCD will add 5% to their base resale price to pay realtors' commission. It is assumed that each realtor will earn half of this amount. The exact commission amount will be listed on the owner's repricing calculations sent by MOHCD.

Step Two: Submitting Pricing Request

The BMR owner must submit the following documents to MOHCD before the unit can be priced:

  • A signed and dated letter (from all owners on title) stating the intent to sell the unit; a request for pricing of the unit; the unit address; the approximate purchase date; the original purchase price and original HOA due amount (an estimate is fine); the number of bedrooms and bathrooms in the unit; the current homeowner association (HOA) fees for the unit; proof of the current HOA due amount in the form of an invoice or bill; and the reason why you are selling. The following language is an example: I own a BMR unit through the Mayor's Office of Housing and Community Development at ADDRESS, UNIT NO., ZIP which I purchased on DATE. I would like to consider selling my unit and request the current restricted value of the unit from the Mayor's Office of Housing and Community Development. The unit has X bedrooms and X bathrooms.  My current HOA dues are $________ as of ________(current date). When I purchased the unit, my HOA dues were $______.  The unit was purchased with/without a parking space. I am/am not requesting a capital improvements review. I am/am not submitting a special assessments review. I have decided to sell my unit because: I am relocating; I plan to/have purchase a new home; etc."
  • A signed listing agreement with a real estate agent who will list the unit on the public San Francisco Multiple Listing Service. In the "sales price" space, realtors may write: "Price to be determined by SF Mayor's Office of Housing and Community Development." Contracts should provide at least a 60-day closing period with a 45 day loan contingency period. Realtors should also note in the listing agreement that the unit is monitored by the Mayor's Office of Housing and Community Development under the Inclusionary Housing Program.
  • Documentation of eligible capital improvements on the property or speical assessments paid. See the Procedures Manual for specific information on documenting and submitting this information. BMR units must be at least 10 years old in order for a BMR owner to claim certain eligible capital improvements on their unit and to have this amount added to their resale price.

The realtor should send all documentation at the same time to the contact listed at the bottom of this page.

Step Three: Pricing

MOHCD will price the unit within 30 days of the submission of the listing agreement, resale request and capital improvements documentation. MOHCD will send a letter to the owner stating the resale price. This letter will also be sent to the owner's realtor.

Explanation of Pricing –

  • A BMR unit will be priced so that it remains affordable to another qualifying household.
  • Older BMR units will be re-priced using one of two methodologies as dictated by the planning approval for the specific development. These methods include (1) the complete MOHCD pricing formula that is based on the current median income and the current Cost of Funds Index; or (2) the percentage change in the consumer price index from the time of the current owner's purchase to the time of sale.
  • Newer units will be re-priced using the percentage change in the local median income from the year of the current owner's purchase to the year of resale.
  • See Repricing Guidelines on the MOHCD website for more information.
  • There is the possibility that the unit price may decrease from the time of purchase to the time of sale. In this situation, the Mayor's Office of Housing and Community Development will allow owners the option of marketing the unit for their original purchase price plus MLS commission and eligible capital improvements. However, BMR units must be governed by the most current version of the City and County of San Francisco Residential Inclusionary Affordable Housing Program Monitoring and Procedures Manual in order to take advantage of this option. A current BMR owner may sign and notarize an agreement to abide by the 2007 Procedures Manual rather than an older version in order for their BMR unit in order to be priced at the initial purchase price. Once resold, all units will be priced according to the change in area median income into the future upon signing into the new Procedures Manual.
  • The BMR owner may lower the price of the BMR unit but may not market or sell the unit for a price above the maximum resale price provided by our office.

 Step Four: Marketing the Unit

  • Realtor must carefully read the Procedures Manual, the BMR Ownership Program Overview, and the BMR Ownership Program Application before beginning your marketing. The realtor should not begin the resale process until having thoroughly read and understood these three documents. The process can be complicated, and the seller and buyers will look to the realtor for guidance. MOHCD adds 5% to the base resale price under the assumption that all realtors involved will be a responsible and informed BMR realtor. MOHCD is relying on agents to fully understand the resale process and the qualifications for the next buyer.
  • Realtor completes and submits MOHCD website posting template to MOHCD 7 days before intending to post the unit. MOHCD will review and approve. Realtor must set all dates to begin 7 days from submission.
  • Realtor must post the BMR unit in the public San Francisco MLS and other City-wide venue for at least 21 days. Our office will list the unit for the same 21 days on our Mayor's Office of Housing and Community Development website. Realtor may not list the unit on the MLS and other City-wide venue until the unit is listed on the City's site.
  • Public San Francisco MLS and other City-wide venue postings must include both internal and external photos of the unit.
  • Realtor must hold at least two open houses for the unit – one on a weekday evening and one on a weekend day.
  • Realtor must provide interested buyers with the MOHCD application form and requirements, as well as any additional forms that the agent requires for the transaction. The application is available on the MOHCD website.
  • Realtor will collect MOHCD application materials, plus a completeSan Francisco Purchase Agreement and a loan pre-approval from each applicant household from a participating MOH BMR lender. Purchase agreements must state a purchase amount no higher than the maximum resale price set by the Mayor's Office of Housing and Community Development.

 Step Five: Public Lottery for the Unit

  • Realtor sends a list of all applicants for the unit to MOHCD within 24 hours of the application deadline for the unit. MOHCD provides seller's agent with a template for this list.
  • Realtor must work in conjunction with MOHCD to hold a public lottery of offers submitted by the deadline. This lottery should take place no sooner than 7 days from the offer submission deadline. The lottery will be held at the MOHCD office and conducted by a representative from the Mayor's Office of Housing and Community Development.

 Step Six: Closing on the Unit

  • Realtor will work through the lottery list from top to bottom to sell the unit. Often, lottery winner #1 will purchase the unit.
  • Realtor submits lottery winner #1's complete MOHCD Inclusionary Housing Application to MOHCD for review. It is the sales agent's responsibility to ensure that the application is complete. Incomplete applications will be returned to sale's representative.
  • MOHCD reviews application and sends an approval or disapproval letter to buyer within 15 days of the receipt of a complete application. Buyer may be concurrently seeking a final loan but purchase of the unit by the buyer must be approved by MOHCD.
  • Buyer is subject to MOHCD lending guidelines. Buyer's realtor, seller's realtor and buyer's lender must be aware of these guidelines. BMR buyers must work with an approved BMR lender.
  • The lottery winner should secure a loan approval within 45 calendar days of signing a sales contract. The seller's realtor should contact MOHCD if this is not the case and be watchful of the time passing. MOHCD will decide when a buyer has passed the standard time for securing a loan.
  • Buyer's lender works in conjunction with seller's real estate agent to supply MOHCD with the documents needed for the creation of MOHCD's closing documents: final loan approval (1003 and 1008); fair market appraisal; preliminary title report; and sales contract, etc..
  • Upon receipt of the above documents, MOHCD drafts contracts for buyer(s) to sign and sends to Title Company within 15 business days.
  • Title Company works with buyer to review and sign MOHCD contracts/closing documents and sends signed, notarized and recorded documents back to MOHCD within 30 days.


Commonly Asked Questions:

Q: Does MOHCD guarantee that I will receive the highest maximum resale price when I resell my unit?

A: No, MOHCD does not guarantee a certain resale price for the owner. It simply sets the maximum price that an owner can request.

Q: How long will it take MOHCD to price my unit?

A: Up to 30 days. Capital improvement requests may require inspection by a MOHCD representative and may extend the pricing period depending on the nature of the request.

Q: Can I have my unit priced even if I do not intend to sell?

A: No. MOHCD does not have the capacity to reprice BMR units without a serious intent to sell, as verified through the required submission of a listing agreement.

Q: Do I have to pay a realtor to submit a listing agreement for me?

A: You should not have to pay a realtor to submit a listing agreement for you.

Q: Can I decide not to sell my unit once I receive my pricing from MOHCD?

A: Yes, of course. The owner has the option to decide to sell or not to sell.

Q: How much time is the lottery winner allowed to find a loan?

A: The lottery winner should have a loan secured within 45 calendar days of signing a sales agreement. The seller's realtor should contact MOHCD if this is not the case.

Q: What if lottery winner #1 cannot secure a loan?

A: Winner #1 cannot purchase the unit unless able to secure a loan. Realtor sends MOHCD application of lottery winner #2 and the process re-starts.

Q: What is the entire length of time it takes to sell a BMR unit?

A: This varies, but it can take from 90-130 days from the time of requesting a resale price in order for a buyer to close on the unit.

Q: If the resale price is not yet set, what price should the realtor enter into the listing agreement that we submit to the Mayor's Office of Housing and Community Development?

A: Please write in the following phrase: "Price to be determined by SF Mayor's Office of Housing and Community Development."





time estimate

Pricing of the Unit 30 days

Unit is Marketed on MOHCD Website and MLS

21 days

Lottery for Resale Buyer (7 days after application deadline)

7 days

MOHCD Reviews Application of Resale Lottery Winner

(once a complete packet is submitted)

15 days

Buyer Secures Loan Approval

21 days


Lender completes loan approval, conducts appraisal of the unit, gathers Preliminary Title Report, and final sales agreement and submits to MOHCD.

7 days

MOHCD completes contracts to be signed by buyer (closing documents) for resale lottery winner and sends to title company (once a complete packet is submitted)

15 days

Buyer works with Title Company to sign closing documents from Title Company, lender and MOHCD

14 days


Approximately 130 days total


Contact Information:

Inclusionary Housing Program

Mayor's Office of Housing and Community Development

1 South Van Ness Avenue, 5th Floor

San Francisco, CA 94103

(415) 701-5500