Below Market Rate (BMR) Units vs. First Time Homebuyer Loans I appreciate the opportunity to tell you in more detail about HEART which stands for the Housing Endowment And Regional Trust – the HEART of San Mateo County.

Condominiums in Market Rate Developments BMR Units Condominiums in Market Rate Developments Affordable Price Resale Price Restricted Low 5% Down Payment

BMR Units Median Income BMR Price 2016 $107,700 $400,000 2021 $119,000 $441,968 Increase $11,300 $41,968 % Increase 10.5% Here’s how HEART works. It is important to realize that HEART is not a builder of affordable homes, but rather a funder of affordable homes. Typically, a developer or non-profit housing provider like Habitat for Humanity or HIP Housing will plan a development , obtain the necessary approvals from the jurisdiction in which the development is located, and apply for funding from HEART. If the development meet’s HEART’s criteria, HEART will provide either early seed funding or late-stage funding to fill in the gaps. When the development is complete, the homes will either be rented or sold to first-time buyers. In the case of rental developments, the complex will be managed by a reputable property management firm. Again, HEART’s role is not to build or manage property. HEART’s role is to raise and provide funds. Sale (5 YRS) BMR ($400k) Down Payment $20,000 Appreciation $41,968 Loan Principal Paid $36,299 Total $98,268

First Time Homebuyer Open Market Home Market Price First Time Homebuyer Loans First Time Homebuyer Open Market Home Market Price No Resale Restriction Low 5% Down Payment 4

BMR Units vs. First Time Homebuyer Loans At Sale (5 YRS) BMR ($400k) Market ($750k) Difference Down Payment $20,000 $37,500 $17,500 Appreciation $41,968 $207,211 $165,243 Loan Principal Paid $36,299 $68,061 $31,762 Total $98,268 $312,773 $214,505 Monthly Mtg. Payment ($1,814.18) ($3,401.58) ($1,587)

First Time Homebuyer Loan BMR Units First Time Homebuyer Loan + Affordable purchase price + Low down payment + Low monthly mortgage payment – Lower appreciation + Moderate down payment for move up purchase – High market price – Low to Moderate Down Payment – High monthly mortgage payment + (Higher) Market appreciation ++ Higher down payment for move up purchase

Housing Endowment And Regional Trust www.heartofsmc.org I appreciate the opportunity to tell you in more detail about HEART which stands for the Housing Endowment And Regional Trust – the HEART of San Mateo County.