- A holder of a valid Real Estate Appraiser Certificate from the state of California.
- The Resale Price minus closing costs, real estate commissions, and any other normal and customary costs incurred by the Borrower in selling the Assisted Unit, minus the Original Purchase Price of the unit and normal and customary closing costs incurred by the Borrower in purchasing the unit; minus the value of any capital improvements for which the Borrower received prior City approval under this Program.
- Assisted Unit
- A unit for which the City provides a City Loan.
- That person or persons who have title to and occupy the Assisted Unit and have entered into a Shared Appreciation Loan with the City.
- City Loan
- A loan made pursuant to the Tenant Ownership Charter Rights Amendment (TORCA) and these guidelines, including any amendments thereto.
- Eligible Borrower
- Low and moderate income households who are currently residing in a building which has undergone Tenant Participating Conversion (TPC). Members of the City Council, persons employed by the City's Resource Management Department, City Manager's Office, City Council or family members of such persons are not eligible to participate in the program. The immediate relatives of the seller of the unit, including the spouse, child, parent, grandparent, brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, sister-in-law, and brother-in-law, are not eligible to participate in the program.
- Loan Term
- The City loan term is 20 years. However, a 30 year term is available for those lenders which require secondary market involvement to make a fixed rate loan.
- Low Income Household
- Persons and families whose incomes do not exceed eighty percent (80%) of the median gross income for Los Angeles County, adjusted for family size, as determined by the Secretary of Housing and Urban Development and under Section 8(f)(3) of the United State Housing act of 1937, as amended or, if programs under Section 8(f)(3) are terminated, eighty percent (80%) of the median gross income determined under the method used by the Secretary following such termination.
- Moderate Income Household
- Persons and families whose incomes do not exceed one hundred twenty percent (120%) of the median gross income for Los Angeles County, adjusted for family size, as determined by the Secretary of Housing and Urban Development and under Section 8(f)(3) of the United State Housing act of 1937, as amended or, if programs under Section 8(f)(3) are terminated, one hundred twenty percent (120%) of the median gross income determined under the method used by the Secretary following such termination.
- Maximum Loan Amount
The maximum loan amount is based on both the household income, number of bedrooms in a unit and household size as displayed below:
||Minimum* Household Size
||Maximum* Household Size
||Maximum City Subsidy - Moderate Income
||Maximum City Subsidy - Low Income
*Household size limitation would not apply to Long Term Tenants defined as tenants who have continuously lived in the building containing the Assisted Unit since November 27, 1995.
A single, elderly, disabled or handicapped loan applicant supported by a live-in attendant (providing at least 8 hours of care daily) who is determined to be essential to the applicant's care or well being qualifies as a two person household.
**The maximum household size per unit is consistent with the Standards of the City of Santa Monica Housing Authority. The City may waive the maximum household size criteria for good cause based on administrative discretion.
- Original Purchase Price
- The amount paid by the Borrower to purchase the unit, not including fees such as title fees, escrow fees, loan origination fees and other closing costs.
- The Shared Appreciation Loan Program adopted by the City pursuant to the Tenant Ownership Rights Charter Amendment (TORCA).
- Resale Price
- The amount for which the Assisted Unit is sold by the Borrower. In the case of a matured loan or a loan prepayment (where there has been no transfer or sale), the Resale Price shall be equal to the fair market value of the property. To determine the fair market value of the Property for this purpose, the City and the Borrower shall endeavor to agree upon an Appraiser. If the parties are unable to agree within ten (10) days, the Lender shall have an appraisal made by an appraiser of its choice to establish the fair market value. The Borrower may also, at Borrower's expense, have an appraisal made by an appraiser of the Borrower's choice to establish the market value. If agreement cannot be reached, the average of the two appraisals shall be deemed to be the fair market value.
- Tenant Participating Conversion
- Any conversion to tenant ownership implemented under Section 2000 et. seq. of the Santa Monica City Charter.
- Housing unit that has been converted through the TORCA process which is currently occupied by applicant and intended for purchase as a condominium.