Livermore updates Affordable Homeownership (BMR) rules; pre-application opens January 2025

The City of Livermore presented updated guidelines for its Affordable Homeownership Program (also called the Below Market Rate or BMR program), including 2025 income limits, purchase-price examples and application timing. Shannon Andrews, a consultant and program administrator for the City, said the pre-application period is expected to open in January 2025 and encouraged interested households to join the city's housing interest list.

The presentation laid out eligibility rules: applicants must be U.S. citizens or lawful permanent residents, be first-time homebuyers (no ownership interest in improved real property within the previous three years) and occupy the unit. Gross household income of all adult members (18+) is counted; income of dependents 18'24 who are full-time students may be excluded. Andrews said applicants enter a 55-year resale restriction and must annually certify occupancy.

City staff provided 2025 AMI examples and purchase-price bands. For a one-person household, the presentation listed $84,600 as the 80% AMI threshold and $130,800 as the 120% AMI threshold. For a five-person household, the presentation listed $130,500 (80% AMI) and $201,800 (120% AMI). Sample BMR unit prices shown included an 80% AMI studio at $250,112 and a 120% AMI studio at $420,033. A 3-bedroom condo affordable sales-price example was $321,131 with a 3% down payment (~$9,634), assumed closing costs of 4% (~$12,845) and an estimated monthly payment (PITI plus HOA) of about $2,643.

Financial and underwriting requirements were detailed: applicants must provide a minimum 3% own-funds down payment (documented with three months of bank statements); up to 17% of the purchase price may come from gifted funds but those gifts count toward the liquid-asset limit. The city said total liquid assets cannot exceed 25% of the purchase price, except that households at or below 50% AMI may apply excess assets toward the down payment to qualify. A mortgage lender pre-approval is required with the full application; the city maintains a participating lender list and recommends using a lender familiar with BMR properties. Minimum credit score requirements were listed as 660, with case-by-case consideration for scores between 650 and 660 if a 3.5% down payment is provided. The back-end debt-to-income ratio must not exceed 40%, with a possible exception up to 45% depending on down payment and credit.

The presentation explained the city's "silent city loan" mechanism for resale at market value: a promissory note secures the difference between fair-market value and the program's affordable sales price; the presenter illustrated a $350,000 difference in an example and explained compounding at 3% for specified periods and forgiveness conditions while the resale restriction remains in effect.

Selection and preferences were described in detail. Applicants are grouped by preference-point totals (up to 10 points) and then randomly sorted within each priority group. Preference categories cited include working in Livermore (2 points), living in Livermore (2), credentialed teacher in the Livermore Valley Joint Unified School District (2), City of Livermore emergency responders (2), veteran (1) and tenant of a rent-restricted unit (1). Eligibility requirements for each preference category (work hours, residency period, employer, and tenant standing) were specified.

The city also described down-payment assistance options available to BMR buyers, including programs described in the presentation as Begin and CalHOME for households at 80% AMI and the Livermore MAP for households at 120% AMI. All three were presented as accruing 3% simple interest; Begin and CalHOME include options to defer payments for 30 years, while the Livermore MAP requires monthly payments over 20 years. The presenter discussed additional financing and partner programs, mentioning CMG Financial's products (including a HOME-funded down payment gifting tool), Fannie Mae HomeReady, Freddie Mac Home Possible, and CalHFA programs (CalPLUS, ZIP and My Home Assistance), and noted program eligibility and key features such as reduced private mortgage insurance and low down-payment options.

First-time homebuyer education is required; the presenter named the Eden Council for Hope & Opportunity (ECHO Housing) as a HUD-approved curriculum provider and said HUD-approved course completion certificates will be required for each household member 18 and older prior to closing.

Next steps: the city will open an online pre-application in January 2025, sort applicants by preference points into priority groups, and run a lottery-style selection within each group; applicants will be notified in writing within a week of selection. There is a one-time $125 application fee payable to the City of Livermore. For more information, the city directed listeners to the Affordable Homeownership Program web page and the housing interest list; program inquiries were directed to Shannon Andrews, the program administrator.