The TORCA Shared Appreciation Loan Program was established by the Tenant Ownership Rights Charter Amendment (TORCA) and amended by Proposition K adopted in 1992, in order to assist low- and moderate-income households to purchase their units as condominiums under TORCA. Under this program, the City makes Shared Appreciation loans to persons who could not otherwise afford to purchase their apartments when those apartments have been converted to condominiums.
The maximum loan amount available from the City will depend on the size and income of the household, and the size and price of the unit. No payments need be made on the City loan until the unit is sold or otherwise transferred, the term of the loan expires, or there is a default on the loan. Upon sale, transfer, loan expiration, or default, the owner repays the loan and will share any increase in the value of the property with the City, in proportion to the amount of the City's investment.
General Requirements
Shared Appreciation Loans are intended to make home ownership possible for buyers who:
- have adequate incomes to support a mortgage, but do not have the funds available to pay the necessary down payment or closing costs, or
- have incomes which are too low to qualify for an adequate mortgage for the unit being purchased.
The loan amount will be based upon the applicant's borrowing capacity, assets available for down payment, household size, and unit size. The loan amount shall be no more than is necessary to enable a Borrower to: (1) obtain maximum affordable private financing, and (2) utilize personal assets to purchase the Assisted Unit. In no case shall loans exceed 60% of the purchase price. The following maximum amounts per unit and household size apply:
For Low-income households, as defined on page 7 of these Guidelines, the Maximum City loan may not exceed $110,000.
For Moderate-income households, as defined on page 7 of these Guidelines, the Maximum City loan may not exceed the following:
| Unit Size |
Maximum City Subsidy |
Minimum* Household Size |
Maximum* Household Size |
| Studio/efficiency |
$50,000 |
1 |
2 |
| 1 bedroom |
$60,000 |
1 |
3 |
| 2 bedroom |
$75,000 |
2 |
4 |
| 3 bedroom |
$75,000 |
2 |
6 |
| 4 bedroom |
$75,000 |
2 |
8 |
*Exceptions are detailed in the Definitions Section under the Maximum Loan Amount category.
The minimum loan is $5,000
All loans will be available only to eligible borrowers whose borrowing capacity is determined to be insufficient to purchase the unit on their own. All loans will be secured by a Deed of Trust recorded against the Assisted Unit. The City's Deed of Trust may be subordinated to a private lender's First Deed of Trust and City approved seller financing.