Affordable Housing vs Housing Affordability
There is much confusion on the topic of Affordable Housing and Housing Affordability and governments role in solving the housing crisis. Please join me in fighting back the status quo practice of labeling market rate housing as bad and affordable housing as good. Attempting to pit them against one another is inaccurate and counterproductive. Both are necessary, and both advance the larger goal of affordability. Income-restricted Affordable Housing (Government Subsidized Housing) is often the only sort of new housing that can directly assist very low-income households, and for that reason income-restricted housing is essential. But many low- and moderate-income people live in older market-rate housing, and they face rising rents when market-rate housing is in short supply. More market-rate housing, especially if it's built in expensive areas like Oceanside where higher-income people want to live, eases the pressure these households face. A bold new approach to housing must be made that includes reforming out-of-control regulations on the free market. The current failing model is denying home ownership to a growing number of working families and keeping Oceanside residents from reaching their economic potential. The decline in property ownership threatens to turn much of the middle class into a class of rental serfs, effectively wiping out the social gains of the past half century.
I've created a unique hybrid program that I believe will immediately address housing affordability and reciprocate prosperity in ways traditional down payment assistance programs have never before been able too do. This program is not a government subsidy and does not use tax dollars. Program is 100% funded by development Affordable Housing "In Lieu fees. OceansideAMPP is subject to a future council agenda item, public feedback and a majority council vote.
See below video of the program I'm proposing.
Program Name: Oceanside Affordable Market Purchase Program (OceansideAMPP)
Loan Amount: Up to 20% of the acquisition price. Can be used for down payment and closing costs.
Income Limits: Up to 115% of the area’s median income (AMI) – Income must include all persons on title including non-borrowing spouse.
Purchase Price Limits:
Single Family Homes- $600,000
Condominiums, Town homes and Twin homes- $450,000
Other Program Requirements:
• Applicants must attend an 8-hour, in-person or online Home buyer Education Class given by approved provider.
• Applicants must contribute a minimum of 1% and a maximum of 20% of the homes acquisition price from personal or gifted funds (subject to 1st Mortgage guidelines). Exception - Seniors 55 who are relocating from an Oceanside Mobile Home Park and utilizing sales proceeds as down payment. (Supporting documentation required)
• Home buyers must occupy the home as their principal residence, Occupancy must occur within 60 days of purchase.
• If eligible, applicants who apply for this program may also be required to apply for the Mortgage Credit Certificate Program (MCC).
• All Applicant must be First Time Home Buyer(s) (Person who has not owned a home in the past 3 years) Exception – Veterans, Seniors 65 + and Seniors 55 + who are relocating from an Oceanside mobile home park.
• All Applicants must be currently living in the City of Oceanside for last 12 months OR work in the City of Oceanside for last 6 months. (Supporting documentation required)
• Combined Debt to Income Ratio including proposed monthly housing obligation (Principle, Interest, Taxes, Insurance, Mortgage Insurance and HOA) and monthly obligated debts reflected on credit report (Credit Cards, Automobiles ect) not to exceed 45% of borrowers qualifying household income. All debts must be considered including non-borrowing spouse.
• Deferred, requiring no monthly payments (Silent 2nd)
• Loans have a Shared Appreciation component in which the City of Oceanside will share 25% of the future net appreciation in the future value of the property upon sale or payoff.
• Repayment is due on sale, title transfer, first mortgage repayment, or in 30 years.
• Refinancing of first mortgage is allowed under certain conditions. i.e Rate and term refinance or in limited cases to improve property subject to maximum combined Loan to Value including City silent 2nd loan not exceeding 100%. (Supporting documentation required before subordination will be authorized)
• One-unit properties, i.e. single-family residences including town homes, twin homes and condominiums.
• Properties must be located in the City of Oceanside.
• Properties cannot be occupied by tenants.
• Approved short sales/pays, foreclosed and REO properties and regular sales.
• All properties may be subject to inspection by the City of Oceanside prior to loan funding.