- Applicants may obtain an information package from the Housing Division at (310) 458-8702 or from the Planning Counter in Room 111 at Santa Monica City Hall, located at 1685 Main Street.
- Housing Division staff or private lenders approved by the City are available to answer general questions about program requirements or application procedures. Applicants are strongly encouraged to participate in a “first time home buyer” education class.
- Private lenders can prequalify interested applicants for a bank loan.
- Applicants may submit applications for assistance only if their building has received final map approval from the City.
- Prior to submitting a loan request to a lender, applicants should contact the City to obtain an Inspection Certificate. This involves unit inspection and proof of occupancy. (See Attachment A.)
- Upon completion of the City Inspection Certificate (see Attachment A), applicant can submit all required lender and City forms to the lender, who will commence underwriting and verifications. The applicant will notify the City that they have submitted a loan application to the lender (See Attachment 6).
- Upon issuance of the lender's commitment letter, the completed lender credit file will be forwarded by the lender to the City for review of borrower eligibility and underwriting of the City loan. The completed credit file should include: - Copy of purchase agreement; - Evidence of the building's Tenant Participating Conversion approval (i.e. condominium conversion); - Verification of income (most recent W2 form or acceptable verification from an employer); - Two previous years' federal and state income tax returns.
- Completed applications submitted by lender(s) to the City will be considered on a first come first served basis; however, City loan funds will be allocated between low income Borrowers and moderate income Borrowers as required by the City Charter. In addition, a total of twenty-five percent of the TORCA funds will be set aside for households which resided in a unit in a building undergoing conversion at the time of Planning Commission approval (or City Council approval where applicable). Half of these funds, (12.5% of the total funds available) shall be set aside for low income households meeting this criterion, and half of these funds (12.5% of the total funds available) shall be set aside for moderate income households meeting this criterion. In the event that adequate funds are not available to fund all loan applications, priority shall be given to households which resided in a building undergoing conversion at the time of Planning Commission approval (or City Council approval where applicable) of the application for Tenant Participating Conversion.
- If the Borrower is eligible to receive a TORCA loan, a notification letter will be prepared by Housing Division staff and reviewed and signed by the Housing Manager. The letter shall state the maximum Program assistance amount reserved for the Borrower, and a list of additional conditions, documents, and steps that must be completed by the Borrower in order to close the loan.
- All Borrowers shall be required to provide the City with title insurance in a form and substance acceptable to the City and shall name the City as additionally insured on hazard insurance policies, which shall be in amounts acceptable to the City.
- Upon fulfillment of all conditions, City staff, will prepare City loan documents for execution and transmit the documents to escrow. Escrow shall work with the Borrower to coordinate the simultaneous closing of the City and private lender loans.
- The Director of the Resource Management Department or his designated representative shall authorize release of the TORCA loan funds into the escrow account established for the loan closing with instructions for disbursement.