AFFORDABLE HOUSING MARKETING PLAN - FINCH HOLLOW By Robson Homes AFFORDABLE HOUSING FOR MODERATE
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AFFORDABLE HOUSING
MARKETING PLAN
FINCH HOLLOW
By Robson Homes
1180, 1190, 1189 & 1179 DOGWOOD ST.
MILPITAS, CA 95035
AFFORDABLE HOUSING FOR MODERATE
INCOME HOMEOWNERS
March 2022
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38077.01007\34765755.1Overview
Finch Hollow is a new community of 38 single-family homes by local homebuilder Robson
Homes. Located east of highway 680, adjacent to the beautiful rolling hills, this special enclave
of Spanish, Ranch and Farmhouse style homes offers spacious two-story homes with backyards,
great schools and easy access to all of the Silicon Valley and East Bay. The neighborhood is
scheduled for completion in summer of 2022, with the four (4) Affordable Units ready for
move-in in April.
Robson Homes is a privately held homebuilder dedicated to superior design in the Silicon
Valley. In their over 30 years of local experience, the company has built a solid reputation for
beautiful homes and wonderful neighborhoods that have an enduring positive impact on the
community.
Learn more about Robson Homes and Finch Hollow at www.robsonhomes.com.
In this Marketing Plan for each Affordable Unit, the sales price is presented in Section 1:
Affordable Sales Price. Section 2: Eligibility Requirements discusses the income and other
eligibility requirements for each Affordable Unit. The advertising plan to ensure public
awareness of the Affordable Unit opportunity at Robson Homes is discussed in Section 3:
Affordable Unit Advertising Plan. Because it is anticipated that initially there will be more
interest and eligible applicants than available affordable units for purchase, a lottery will be
used to ensure equal opportunity and fairness in the selection of each Initial Eligible Purchaser
for occupancy of the affordable units. Section 4: Lottery Process describes the process and
schedule for the lottery. The application for an Affordable Unit appears as Exhibit A:
Affordable Unit Simplified Lottery Application. Section 5: Escrow Process details the escrow
period once the buyer has formally accepted a contract to purchase.
Unless otherwise defined herein, all capitalized words have the meanings defined in the
Affordable Housing Agreement (Robson Homes) recorded on February 15, 2022 against the
property (the “Regulatory Agreement’).
Section 1: Affordable Sales Price
Affordable Sales Price
The initial Affordable Sales Price for the Affordable Units will be limited to a mortgage payment
that does not exceed one-twelfth (1/12) of thirty percent (35%) of one-hundred and twenty
percent (120%) of AMI, for a family of five (5). “AMI” means the area median income for Santa
Clara County determined periodically by the California Department of Housing and Community
Development (“HCD”) as published in Section 6932 of Title 25 of the California Code of
Regulations.
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38077.01007\34765755.1The Affordable Sales Price is determined to be $837,802 and has been calculated as follows:
Moderate at 120%
4-bedroom
Family size 5
Annual Income $196,050
Max monthly housing cost $5,718
Property tax $850
HOA dues $161.25
Utilities $326
Insurance $200
Maintenance $708
Total monthly costs $2,246
Max mortgage payment $3,473
Interest Rate 3.25%
Mortgage $797,907
Down payment $39,895
Sales price $837,802
Affordable Unit Description:
Four (4) brand new, two-story, duet-style, attached single-family homes.
Amenities consisting of the following:
o Four (4) bedrooms, three (3) bathrooms
o Approximately 1,597 sq. ft.
o Private backyard space
o One-car garage & driveway apron
o Owned 2.72kW solar system for energy and cost savings
o Full bedroom & bathroom suite on the first floor
o Spacious Owner’s Suite with dual sinks and walk-in-closet
o Upstairs laundry closet prepped for a stackable washer and dryer (appliances not
included)
o Custom shaker-style white cabinetry throughout
o Bosch® stainless steel kitchen appliances, refrigerator not included
o Quartz kitchen countertops
o Kohler® and Sterling® plumbing fixtures and faucets
o Solid core interior doors for privacy and quiet
o Recessed LED can lighting throughout
o Wood-look rigid core luxury vinyl flooring in main living areas
o Tiled bathroom floors; Carpeted bedroom floors
o Utilities: electricity, gas, water, sewer and garbage collection
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38077.01007\34765755.1Section 2: Eligibility Requirements
To be eligible for a Restricted Unit, Eligible Households must be a “Moderate-Income
Household” defined as a household that has an Adjusted Income that is less than or equal to
one-hundred and twenty percent (120%) of AMI. Income is defined as gross taxable income as
reported to the IRS. To prove eligibility, the applicant must submit a letter from their lender
stating the lender has completed a review of the applicant’s income and has determined that
the income of the applicant is at or below 120% AMI.
2021 HCD Income Limits
Household Size 4 5 6 7 8
Moderate @ 120% 181,550 $196,050 $210,600 $225,100 $239,650
Minimum household size:4
Maximum household size: 9 (income limit tbd)
Preferences
While every applicant must meet the City’s basic eligibility requirements, the City of Milpitas
gives some Households a lottery preference that increase the chance that they will be offered
an affordable unit.
The City endeavors to make housing available for Milpitas residents, individuals who work in
Milpitas, former Milpitas residents who have been displaced, and families with children
enrolled in the McKinney Vento Program at the Milpitas Unified School District (MUSD):
• To qualify as “Employed within the boundaries of the City of Milpitas,” the person shall
have been employed within the City of Milpitas for at least six months.
• To qualify as a “Milpitas resident,” the person shall have been a resident of the City of
Milpitas for at least a one-year period prior to the eligibility determination.
Proof will be required for the above preferences – for example, a copy of the applicant’s utility
bills indicating residence in Milpitas and/or lease agreement, and employment verification.
Preferences must be current and apply to at least one person who will be living in the
household at least 50% of the time.
Pre-Qualification
Applicants must submit a loan pre-qualification Letter as part of their lottery application
submittal. The pre-qualification letter must include:
• Name all adults aged 18 and older in the applicant’s Household
• Be dated within 120 days of the applicant’s application
• Contain a maximum loan amount
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38077.01007\34765755.1• Include the lender-calculated household income
Please note, that the City encourages the lender to provide the closest estimation of the
household income and maximum loan amount without processing a hard credit inquiry.
Requirements of Owning an Affordable Unit
Owning and selling an affordable unit differs in many ways from owning and selling a market
rate home. As a result, it is important that affordable unit owners understand the rules and
procedures of the program fully. Any violation of the program rules and regulations, use
restrictions, and applicable sections of the Milpitas Municipal Code may result in the City
declaring the Affordable unit owner to be in default of the program and may lead to the
immediate sale of the affordable unit as well as monetary and other enforcement actions.
The following restrictions apply to all affordable unit owners for the extent of the deed
restriction:
• Owner Occupancy
The affordable unit must be the owner’s primary residence. Everyone on title must live in the
Unit at least 75% of the time and must begin occupying the affordable unit within 60 days of
the purchase.
• No Renting
Affordable unit owners are prohibited from renting or subleasing any part of a BMR Unit. No
area of an affordable unit can be rented or subleased as a short-term rental or listed on short-
term rental or vacation rental sites at any time. Renting of a parking space or any other space
purchased with the affordable unit is also prohibited.
• Maintenance
Affordable unit owners will maintain (i) the affordable unit in compliance with all applicable
laws, ordinances and regulations and in a good and clean condition and (ii) all appliances in
good and working order. The Maximum Resale Price of an affordable unit may be reduced as
necessitated by abnormal or excessive wear and tear or because of neglect, abuse or
insufficient maintenance by the affordable unit owner.
• Annual Monitoring
The City of Milpitas requires occupancy certification on an annual basis. affordable unit owners
are required to provide information and documentation regarding occupancy status, and any
other information deemed necessary by The City of Milpitas to determine compliance with the
Program.
• Reselling an affordable Unit
An owner may only sell their affordable unit to another qualified affordable unit buyer. All sales
shall be facilitated through the City of Milpitas. The maximum resale price will be calculated
according to a formula designed to ensure that affordable unit remain affordable.
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38077.01007\34765755.1Section 3: Affordable Housing Advertising Plan
The developer will be responsible for ensuring the Affordable Housing Advertising Plan is
activated in order to reach potential applicants. A mix of marketing strategies and techniques
will be used to ensure that Eligible Households are made aware of the affordable residences
available at Finch Hollow. Key components of the marketing plan include online listings,
distribution of fliers, outreach to referral sources and social media.
The advertising will commence approximately 2 months prior to the completion of the
affordable units. The availability of the Affordable Units will be posted on the City’s web site,
and fliers will be posted at City Hall, the Milpitas recreation, and senior center. The Affordable
Units will also be included on the developer’s website.
The fliers will include the following:
• Property name, address, phone number and web site
• Number of Affordable Units available
• Affordable Sales Price
• Eligibility Requirements
• Application deadline and Lottery date
• Units to be shown to lottery winners by appointment only
• Equal Housing logo
To supplement the marketing effort, awareness and demand will be stimulated through
outreach and networking to potential referral sources in Milpitas and Santa Clara County.
Homes to be posted on Zillow for online distribution as well as the City’s website.
Applications will be available online at https://bit.ly/FinchHollowBMR. Complete applications,
including all supporting source documents, must be submitted one week after the
informational meeting to the City of Milpitas. Late and/or incomplete applications will not be
considered for the lottery.
Section 4: Lottery Process
Because it is anticipated that initially there will be more interest and eligible applicants than
available affordable units, a lottery will be used to ensure equal opportunity and fairness in the
selection of eligible applicants for occupancy of the Affordable Units.
Lottery City of Milpitas
Application Lottery and Lender
Deadline Approval
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38077.01007\34765755.1Sales Final Loan Escrow and
Contract Approval Closing
Application Submissions
Applicants must submit a Simplified Lottery Application no later than April 8, 2022 at 5pm for
this lottery. A household may only submit one application per lottery. Additionally, any
household member may only appear once on an application for a lottery. Any duplicate
applications and applications where any household member appears on more than one
application will be removed from the lottery. Applicants must submit a pre-qualification letter
from a qualified lender along with their simplified lottery application in order to for their
submission to be deemed complete.
Lottery Procedure
Applicants who submit a complete application on or before the application deadline will receive
a single lottery number, unless they qualify for one of the preferences described above, in
which case they will receive additional lottery numbers based on their preferences to be
included in the selection. The Lottery will be held in a public, accessible location that is
arranged and paid for by the Project Sponsor, or alternatively will be held via a public accessible
video conference system, such as Zoom, with the teleconference link provided to all applicants
in the lottery. Applicants shall be invited to attend lotteries, but attendance is not mandatory as
lottery results are readily available on the City’s website. A representative of the City of Milpitas
shall conduct the lottery in tandem with the Project Sponsor. The City of Milpitas shall employ a
publicly available computer program to generate a random lottery number selection for each
affordable unit.
Final Lottery List
No later than seven (7) days after the date on which the lottery is held, The City of Milpitas and
the Project Sponsor shall publish the final lottery list including the lottery rank assigned to each
lottery number in the general pool list. Lottery results shall be posted on the City of Milpitas
webpage, and only once they are posted are the results final. The lottery results shall not
include the names of applicants but only the application ticket numbers. Finch Hollow sales
staff will reach out to lottery winners by email, phone, and through the alternate contact listed
on their application. However, it is ultimately the applicants’ responsibility to check their lottery
results.
Applicants offered an affordable unit must acknowledge their intent to purchase the affordable
unit within 3 business days.
Lottery applicants that are not awarded an affordable unit will be placed on an interest list for
future affordable housing opportunities.
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38077.01007\34765755.1Section 5: Escrow Process
Upon being selected to purchase an affordable unit, the buyer will sign a residential purchase
agreement between them and the developer. Once the terms of the contract have been
accepted, the buyer will be required to place an earnest money deposit into escrow valued at
3% of the purchase price.
Typical escrow periods last 30-45 days depending on the buyer and the lender’s ability to
secure the loan. During this period, the buyer should secure home insurance as this will be
required prior to closing. The buyer will work with their lender to secure the purchase of the
property. This includes diligently providing all required paperwork and documentation needed
to secure the loan. Upon confirmation that the buyer is cleared to close escrow by the lender,
the escrow company and lender will coordinate a day and time for the buyer to sign all required
loan and title documents to finalize the purchase, including a Resale Restriction Agreement
(Exhibit B), and, if applicable, a promissory note and deed of trust for any loan received from
the City to purchase the property.
At the close of escrow, the buyer will now be the owner of the property and they will bear the
sole responsibility for the property.
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