First Time Home Buyers Down Payment Assistance Program
Introduction: The County of Monterey has HOME funds provided by the State of California for a First Time Home Buyer Program. The County will be able to lend income qualified households part of the down payment to purchase a home in the unincorporated areas of the County.
Please keep the following guidelines in mind as you search for your home:
- Eligible homes must be located in the unincorporated areas of Monterey County:
- Homes cannot have more than three bedrooms, except for households with more than 7 people;
- Maximum purchase price is $361,000; the maximum FTHB assistance loan is $72,200 for all unincorporated areas of the County.
Amount of Loan: The Maximum Loan Amount may not exceed the lesser of the maximum loan amount, 20% of the purchase price, or the amount needed as determined by underwriting criteria:
The buyer must contribute towards the down payment. The standard requirement is 3% of the purchase price unless the buyer meets all other criteria and demonstrates financial hardship.
Income Limits: First Time Home buyer assistance is available to households with annual incomes at or below 80% of the median income for Monterey County. The 2017 annual income limits are as follows (these limits are adjusted annually):
Households Maximum Size Income:
- 1 Person: $45.600
- 2 Person: $52,100
- 3 Person: $58,600
- 4 Person: $65,100
- 5 Person: $70,350
- 6 Person: $75,550
- 7 Person: $80,750
- 8 Person: $85,950
Buyer Application Guidelines:
Fill out a Program Interest Form and send it to our office at the following address:
Economic Development Department - Housing Office
Attention: Rosa Camacho-Chavez
1441 Schilling Place - North Bldg
Salinas, CA 93901
You may also request a Program Interest Form by mail by calling the County's Housing Office at (831) 755-5390.
After you have submitted the completed Program Interest Forms the County will complete a review of your stated income, household size and certifications to determine if you are eligible for the First Time Home Buyer Program. Based on this information, the County will notify you in regard to your eligibility.
Eligible applicants will need to select a lender and realtor to work with to purchase their home. The lender will require that you bring income verification and pay for a credit report. Based on this information, a lender will provide a Pre-qualification Letter which cites the maximum loan amount for which you are qualified
At this point, the qualification is based on your stated income. All applicants will need to submit detailed financial information to the County and their lender to verify all sources of income and other assets before any loan can be approved.
Select a realtor and ask them to help you find a home in your price range. Once you find a home, you and your realtor will write a purchase contract and the realtor will take it to the seller. When the seller has accepted the offer to purchase the home, the realtor will open an escrow for you at a title company. You should be prepared to make a good faith deposit when your offer is submitted to the seller. This deposit will be applied to your down payment if the offer is accepted or refunded to you.
You can expect to spend approximately 60 days in escrow (the time between your offer to purchase being accepted and the property title transferring to you). A lot takes place during this time:
- Your lender completes their review of your loan application and sets your interest rate.
- The County reviews your financial information to verify that you are income qualified to receive assistance.
You need to make sure you respond promptly to any requests for additional information from the County or your lender, deposit your down payment into an escrow account and take an 8-hour Home Buyer Education Course. The Home Buyer Education Course is offered by the Housing Resource Center of Monterey County and is free of charge.
Homes cannot have more than three bedrooms, except for households with more than 7 people. Please keep these guidelines in mind as you search for your home.
Inclusionary Housing Programs
What is Inclusionary Housing? Affordable housing is a top priority of the Monterey County Board of Supervisors. The County has a requirement that housing developers include a certain percentage of affordable housing units in their projects. These “inclusionary” housing units are located throughout the unincorporated area of the County. The Inclusionary Housing Program provides home ownership and rental opportunities for households who have very low, low and moderate household incomes.
What is the difference between an Inclusionary Home and a market rate home? The main difference between an “Inclusionary Home” and a “Market Rate Home” is that the Inclusionary Home is price restricted to sell and resell at a price which is generally lower than market rate homes.
When an Inclusionary Home is sold, the maximum resale price is determined by the percentage increase in the County’s median household income from the time it was purchased, rather than the increase in market value. This assures that the Inclusionary Home will remain affordable to targeted households in the future. In the long run, an owner may make a profit on an Inclusionary Home, but it will be less than that made on a market rate home.
The County keeps the Inclusionary Homes affordable through an Inclusionary Housing Agreement which is signed by the home buyer and the County and is recorded against the property. This Agreement is also signed by subsequent property owners upon purchase of the property.
Who is Eligible to Purchase Inclusionary Housing? Because Inclusionary Homes are priced less than market rate homes, they are available only to households who earn less than certain income limits. The amount of income a household can earn and be eligible for the Inclusionary Housing Program depends on the current median income for Monterey County as adjusted for household size, the number of people in the household and the amount of liquid and property assets held by that household. Some of the County’s Inclusionary homes are designated for low-income households and some are designated for moderate-income households. There are specific details in the fact sheets above. You may also request a fact sheet and application form by calling (831) 755-5390.
County of Monterey Inclusionary Housing Program Administrative Manual
County of Monterey
Ordinance No. 5175 (revises Ch. 10.40 of County Inclusionary Ordinance)
Adopted by Board of Supervisors on April 26, 2011
County of Monterey Ordinance No. 04185 (2003 Revision to the County Code)
Fact Sheet and Program Application in English:
Hoja Informativa del Programa de Vivienda Economica
Características y Aplicación del Programa En Español:
Solicitud Para el Programa de Vivienda Economica
2016 Income Limit Table
2016 Income/Rent Limit Table
2016 Income.Ownership Affordability Cap.Table
2015 Utility Allowance- Apts.-Townhouse
2015 Energy-Efficient-Utility Allowance-Apts-Townhouse
2015 Utility Allowance-Detached-House
Welcome, below, you will find information on Monterey County Housing Programs, the Housing Advisory Committee (HAC) and Housing Related Documents.
Staff Contact: Rosa Camacho-Chavez
If you would like to to be notified o f upcoming Housing Advisory Committee meetings, please contact Anita Nachor at email@example.com to be added to our agenda distribution list.
Housing Advisory Committee
The Housing Advisory Committee (HAC) is an appointed body that is charged with reviewing and considering housing related issues for the County. For certain issues, the HAC serves an advisory function to the Planning Commission and/or Board of Supervisors. These issues typically involve policy documents such as the Housing Element, funding recommendations, and Inclusionary Housing Program procedures. Other functions include review and recommendations on proposed grant and loan applications related to specific housing projects.
Legislative Reference: Formed by Ordinance No. 3093 (Chapter 18.40) adopted September 17, 1985.
Membership: Shall consist of 10 members and be comprised as follows: Two (2) appointees from each Supervisorial District. Appointees shall reside in the district from which they are appointed. Membership terms are for 2 years.
Qualifications & Function: To advise the Board of Supervisors and Planning Commission on matters relating to the Housing Element, the Inclusionary Housing Ordinance, and other affordable housing programs. The Committee may conduct public hearings on housing problems and potential solutions; study, review and make recommendations on private housing programs; make recommendations to the Board of Supervisors.
Meeting Dates, Times, and Place: Generally meets the second Wednesday of every quarter. 5:00-7:00pm, Monterey Rm., 168 W. Alisal St. Salinas.
Staff Contact: Rosa Camacho-Chavez 755-5389.
Housing Advisory Committee Members:
|District 1:||Vacant||Sabino Lopez|
|District 2:||Ignacio "Mog" Cabatu||Mark Trabing|
|District 4:||Karen Araujo||La'Quana Williams|
|District 5:||Margaret Robbins||Wayne J. Ross|
If you would like to be notified of upcoming Housing Advisory Committee meetings, please contact Anita Nachor at firstname.lastname@example.org to be added to our agenda distribution list.
HOUSING ADVISORY COMMITTEE AGENDAS
04-08-2015 Packet Part 1
04-08-2015 Packet Part 2
07-08-2015 Draft Housing Element
07-13-2016 Packet - Cancelled
09-14-2016 Packet - Cancelled
**** East Garrison Homes Available now ****
For those interested in the homes being built at East Garrison (both market rate and affordable), please contact Benchmark Communities, LLC, at (831) 384-7320.
Additional information regarding this development can be found at http://eastgarrison.com/. Interested parties can add their email address to receive the latest updates.
East Garrison Inclusionary Housing Brochure Combined
East Garrison Inclusionary Housing Brochure English
East Garrison Inclusionary Housing Brochure Spanish
Housing Related Documents:
Public Notice - 30 Day Review of Draft FY17-18 CDBG Annual Action Plan & Citizen Participation Plan Amendment
Public Notice - AVISO DEL PERIODO DE COMENTARIO PUBLICO DE 30-DIAS PARA LA ADOPCION DEL ANUAL PLAN DE DEL CONDADO URBANO DEL ANO FISCAL 2017-18
Monterey Urban County Community Development Block Grant Program FY13-14 Consolidated Plan and Fy13-14 Action Plan (April 2013)
Monterey Urban County Analysis of Impediments to Fair Housing Choice (April 2013)
The Housing Element is one of seven elements required to be included in the County of Monterey General Plan. State law identifies the subjects that must be addressed in a Housing Element. These guidelines are identified in Article 10.6 of the State of California Government Code (Sections 65580 et.seq.)
State law specifies that the Housing Element must assess housing needs and evaluate the current housing market in the County and then identify programs that will meet housing needs. The housing market evaluation includes a review of housing stock characteristics as well as housing costs, household incomes, special needs households, availability of land and infrastructure and various other factors. Also included is the community's "Regional Housing Needs Allocation" which provides an estimate of the number of housing units that should be provided in the community to meet its share of new households in the region. In addition to this information, the Housing Element document must review and evaluate its past housing programs and consider this review in planning future housing strategies. The County's current Housing Element was adopted in 2016.