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What is a BMP Program?
California cities establish home purchase programs, often called a Below Market Purchase (BMP) program to facilitate the inclusionary housing requirements mandating housing Developers to make a percentage of housing units in new residential developments available to low- and moderate-income households.
The City of Santa Clara has operated a BMP Program since 1995, assisting low- and moderate-income families achieve the goal of homeownership and fulfill State mandates for the production of housing for all income levels.
What do I need to know before I consider applying to the City of Santa Clara BMP Program?
- The BMP is for first time homebuyers
- Yearly Gross Household income limits apply
- Provides affordable monthly payments
- Prospective applicants must obtain a pre-approval from an approved BMP lender
- Down payment is required-Lenders may require a minimum of 5% down. Some units may require additional down payment.
- Homes must be owner occupied for the term of the agreement
- Homes must be resold to another BMP buyer for the recalculated BMP price during the first 5 program years
- From years 6 to 20, the home can be sold at market rate with an equity share to the City of Santa Clara
For additional information regarding the resale restrictions, please review Other Information below.
There are no broker or realtor incentives for “New Construction” Below Market Purchase Units in the City of Santa Clara
What are the Steps?
Click on each step below
- Step 1 - Review Program Requirements and Register for the General Interest List.
- Step 2. Complete a BMP Program Prequalification Intake for Pre-Screening
- Step 3. Attend required Orientation & Application workshop and Homebuyer Education class
- Step 4. Determine if Your Household is Eligible and Your Next Steps
- Step 5. Complete BMP Eligibility Application and Set an Appointment
- Click here to join the general interest list. You will receive new program updates, upcoming BMP orientation & application workshop dates, and available BMP homes information.
- Review BMP Program Requirements:
- Check out Upcoming & Available Developments/Units– view the Homeownership Calendar for open application submission dates
Contact Housing Trust Silicon Valley (HTSV) for additional information or inquiries.
Homeownership Programs Department
Housing Trust Silicon Valley
408.436.3450 ext. 234 or ext. 303
- Fill out a BMP Online Intake Form and send to email@example.com
We will review your intake form and direct you to your next steps. Please allow for a 1-2 week turnaround time for an email response. Contact us for any questions regarding your online intake form. The online intake form does not put your household on a waiting list.
- Review the Eligibility Application and check the list of required documents.
You and any co-applicants/co-borrowers (who will be either on the loan or on title, including non-borrowing spouses) are required to attend both workshop and class.
You can find the next workshops and classes scheduled on the Homeownership Calendar. Please note you and any co-applicants can take the workshops/classes required in any order.
Workshop: The City of Santa Clara Below Market Purchase Program -Orientation & Application – Applicants must attend the workshop. The workshop will:
- Provide a description of the BMP program
- Discuss the eligibility requirements
- Review the Eligibility Application and the steps to apply for the program.
Check HTSV Homeownership Calendar for upcoming workshop dates and registration.
Homeownership calendar: www.housingtrustsv.org/homebuyer-calendar
Class: HUD-certified 8 Hour Homebuyer Education class – must attend in person. Applicants are required to attend a HUD-certified 8 Hour Homebuyer Education class through designated agency. This class helps homebuyers understand the steps to homeownership. Contact Project Sentinel to register for an upcoming class.
Project Sentinel Phone: 408.470.3732
You and your household can only submit an eligibility application during an open application submission period for an available unit by appointment only.
Before submitting an eligibility application:
- Review the City of Santa Clara BMP Guidelines Handbook to determine your household eligibility and qualification.
- Contact BMP staff at the Housing Trust to discuss your BMP Online Intake Form and to receive an approved BMP lender referral.
- Please preview/drive-by the new development. Most developments are under construction and site visits are only arranged for approved BMP applicants. Preview the builder/developer’s website.
Appointment Instructions – Contact BMP staff at the Housing Trust to set up an appointment during an open application submission period.
Pre-approval letter from an approved BMP lender and copy of credit report are required.
After determination of Program Eligibility, the Priority Level Criteria will be applied and you will be notified of your ranking, lottery status and property availability.
Other Important Information
The approved BMP homebuyer will sign to a 20-year Promissory Note for the difference of the home’s appraised unrestricted Initial Market Value (IMV) and the restricted Affordable Sales Price (ASP) when the BMP home is initially sold. The Promissory Note is secured by a Deed of Trust and Security Agreement which creates a lien on the home. The approved BMP homebuyer will also execute the Below Market Purchase Covenants, Restrictions and Option to Purchase document. This document enforces the following resale restrictions to ensure the property remains affordable.
- Year 1 through Year 5 of ownership: A BMP homeowner who decides to sell their home within this time period must sell to an eligible BMP-qualified, new buyer (a first-time buyer with an income not exceeding 120% of area median income) at a re-established restricted resale price. The principal amount of the City Loan is forgiven and a new principal amount of the City Loan is established for the new homeowner.
- Year 6 through Year 20 of ownership: A BMP homeowner can resell their home to whomever they choose at the current, unrestricted fair-market The BMP homeowner will pay off the principal amount of the City Loan at the sale of the home. The BMP homeowner must also pay a share of the increase in equity in the home to the City.
- Year 21 and after of ownership: The BMP homeowner is required to pay back the principal of the City Loan and is able to realize all of the market-driven appreciation in the home above its Initial Market Value (IMV). Resale restrictions expire and the BMP homeowner is no longer required to pay the City a share in the increase in equity in the home.