INCOME QUALIFIED HOUSING

Introduction:

Thank you for your interest in the Income Qualified Homes at South Cove. Please read the following Pre-Application Checklist to learn about the approval process and determine if you are eligible for this opportunity.

This Pre-Application Checklist is to be used as a preliminary self-qualification tool.  The Checklist is only to be used as a guide for a potential applicant to determine if they may be eligible to purchase an Affordable Unit developed under the requirements imposed by the City of Dana Point (City) on the South Cove project.

Capitalized terms used in this Checklist are defined in the Affordable Housing Agreement with Resale Restrictions and Option to Purchase.  As a part of purchase of this home, you will be required to execute the Affordable Housing Agreement with resale restrictions

This Pre-Application Checklist does not establish, expressly or by implication, that a potential applicant will be eligible for, or will be approved or selected for the purchase of an Affordable Unit.  The applicant will be required to submit a significant amount of documentary evidence to the builder, mortgage lender and the City during the formal underwriting process.

STEP ONE: PROGRAM DETAILS

The Affordable Housing (also known as Income Qualified Housing) opportunity at South Cove has been created in partnership with the City of Dana Point to provide affordable housing for moderate income groups. This particular opportunity has been created to serve those who are within the moderate income levels, as defined by the Department Of Housing and Community Development.

These are for-sale homes, not rentals. The purchaser of these homes must meet all requirements for consideration and agree to comply with all regulations and limitations set forth in the Affordable Housing Agreement.

Please read further to understand the details of the offering and the eligibility requirements.

STEP TWO: HOME & COMMUNITY DETAILS

South Cove in Dana Point will offer 17 for sale homes for Income Qualified Buyers. The Income Qualified homes will be available in six of the ten available phases at South Cove, with 2 homes released in Phase 1, 4 homes in Phase 2, 4 homes in Phase 3, 4 homes in Phase 4, 2 homes in Phase 5, and 1 home in Phase 8.

The homes that have been designated as Income Qualified Homes are one bedroom, one bath, three level homes. These homes range between 883-900 square feet. The floor plan names are Trestles 883 and Trestles 900. They feature one-car garages at ground level, GE ProfileTM Series Kitchen Appliances and the South Cove Standard Finish Package. Thoughtfully designed for today’s living, this modern townhome offers a spacious living area. The bedroom is positioned upstairs creating a quiet retreat. Home owners of the Income Qualified floor plans have access to the community amenities at South Cove, including the resort-style pool and spa and workout stations. Just across the street from Doheny State Beach and featuring a park on Pacific Coast Highway, this opportunity to own an Income Qualified Home in the heart of Dana Point is one that you don’t want to miss.


TRESTLES 883

TRESTLES 900


SITEMAP

Please note, these are for-sale homes and are not for rent. Purchasers of the Income Qualified Homes assume all responsibilities of homeownership and must execute the Affordable Housing Agreement and comply with all covenants and restrictions of this agreement.

If this type of home and these terms are agreeable to you, please move on to Step Three.

STEP THREE: PROGRAM ELIGIBILITY

Household Eligibility:

How many persons (both adults and children) will be residing in the Affordable Unit as their primary residence?

If the answer to this question is more than THREE persons, you are NOT eligible to purchase an Affordable Unit.

Income Eligibility:

To purchase the Property, Buyer must qualify as an “Qualified Household,” which is defined as a household whose annual income does not exceed the qualifying limits under California law for “persons or families of moderate income,” as further defined in the Affordable Housing Agreement.

What is your total Gross Income for the preceding 12 months?

The specific definition of Gross Income is provided in the Affordable Housing Agreement.  For the purposes of this Checklist, Gross Income means ALL income from whatever source from ALL persons over the age of 18 who will reside in the Affordable Unit as their primary residence.

Household Size Maximum Gross Income (2017)
1 $73,900
2 $84,500
3 $95,050

Based on the number of persons that will be residing in the Affordable Unit as their primary residence, is your Gross Income less than the maximum allowable income limit presented in the chart?

If the answer to this question is NO, then you are NOT eligible to purchase an Affordable Unit.

Sufficient Funds Available For Down Payment and Closing Costs:

Minimum Home Buyer Contribution

What is the total amount of funds that you have available in savings accounts, checking accounts, and time deposits that are not subject to a penalty for early withdrawal?  Do not include gifts or loans in the total.

The Affordable Housing Agreement requires that home buyers contribute at least 5% of Affordable Sales Price to the purchase of an Affordable Unit.  Based on the current Affordable Sales Price of $319,500, the minimum amount of cash required to meet this requirement is $15,975.

These funds cannot be provided using gifts or loans obtained by the home buyer.

Do you have $15,975 in available funds that is required to meet the minimum contribution amount?

If the answer to this question is NO, then you are NOT eligible to purchase an Affordable Unit.

Maximum Down Payment

The Affordable Housing Agreement limits the amount of the down payment that can be used to purchase an Affordable Unit to no more than 20% of the Affordable Sales Price.

What is the total amount of the down payment that you will need to be able to use to be able to purchase the Affordable Unit?

Based on the current Affordable Sales Price of $319,500, the maximum down payment is set at $63,900.

Do you need to make a down payment exceeding the amount of $63,900 in order to be able to purchase an Affordable Unit?

If the answer to this question is YES, then you are NOT eligible to purchase an Affordable Unit.

Primary Residence:

Do you intend to make the Affordable Unit your primary residence?

If the answer to this question is NO, then you are NOT eligible to purchase an Affordable Unit.

Resale Controls:

The Affordable Unit is subject to resale controls that remain in effect in perpetuity. This means that the Affordable Unit can only be resold to a Moderate Income Household at the Affordable Sales Price in effect at the time of the resale. Buyer may not lease the Property to another person.

You will not be able to transfer the ownership or the title of the Affordable Unit without first receiving approval from the City.

Do you understand that the that the Affordable Unit is subject to resale controls that remain in effect in perpetuity?

If the answer to this question is NO, please reference the Affordable Housing Agreement before proceeding with the application process.

Do you understand that you will not be able to transfer the ownership or the title of the Affordable Unit without first receiving approval from the City?  

If the answer to this question is NO, please reference the Affordable Housing Agreement before proceeding with the application process.

Refinancing Controls:

Do you understand that your ability to refinance the first trust deed mortgage will be limited to an amount equal to the outstanding principal balace owed on the mortgage, plus any customary fees or costs associated with the refinancing? You cannot receive any cash from the refinancing proceeds.   

If the answer to this question is NO, please reference the Affordable Housing Agreement before proceeding with the application process.

If ALL of the above terms are agreeable to you, please move on to Step Four.

STEP FOUR: PROCESS

If you have completed this Pre-Application Checklist to the best of your ability, and have determined that you may be eligible to purchase an Affordable Unit, the next step will be to submit your information below to enter the lottery for an Income Qualified Home.

A lottery system will be used to determine who may apply for the Affordable Homes at South Cove.

The developer will select potential applicants at random. Those potential applicants will be contacted by the South Cove sales team via phone and email. The sales team will then provide a more detailed set of qualifications materials for you to complete.  Those potential applicants have 5 days to submit preliminary information to the South Cove sales team for first review

If potential applicant is determined to be an Eligible Buyer through the first review, the next step will be to contact the South Cove lending team to commence the underwriting phase of the approval process.

If potential applicant is approved through the lending review, they will be passed on to the City of Dana Point for final review and application.

Submitting information to the lottery does not establish, expressly or by implication, that a potential applicant will be eligible for, or will be approved for, the purchase of an Affordable Unit.  The applicant will be required to submit a significant amount of documentary evidence to the builder, mortgage lender and the City during the formal underwriting process.

If a Potential Applicant is not selected in the first lottery drawing, their name will remain in the lottery and be eligible for selection in future phase releases. Only one lottery entry is allowed per household. Developer or persons employed by developer are not eligible for Income Qualified Housing.

If you meet ALL above criteria, you may fill out the following contact form to be entered for the lottery.

THE LOTTERY IS NOW CLOSED FOR JANUARY 2018.

THE SALES TEAM IS NOT ABLE TO SHOW ANY INCOME QUALIFIED HOMES ON SITE.

NEXT LOTTERY DRAWING WILL BE IN FALL 2018.

YOU WILL BE NOTIFIED VIA EMAIL WITH UPDATES AT THAT TIME.

TO ENTER THE LOTTERY, PLEASE SUBMIT INFORMATION HERE

Additional Resources

OC Housing Authority
 

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Dana Point Housing Resources Directory

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California Housing and Urban Development Website

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Additional Questions?
 

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