FREQUENTLY ASKED QUESTIONS ABOUT
THE HOUSING ASSISTANCE FUND
Where do housing assistance funds
come from?
Who is eligible for these loans?
Can I pay into the fund if I am not currently a member?
What do I do if I want to pay off my loan off early?
What happens if I leave County employment?
Will my boss or co-workers know that I applied for this loan?
Can I apply via fax?
Rental/Mortgage Assistance Program (RMAP)
Who is eligible for an RMAP loan?
What is the maximum amount I can borrow?
What is the interest rate for this loan?
Are there any fees for this loan?
How long do I have to pay off the loan?
How soon can I obtain a second loan?
How long does the process take to get the check
to my landlord or mortgage company?
Does my credit need to be perfect to qualify
for the RMAP?
FIRST TIME HOMEBUYER PROGRAM (FTHB)
What can a FTHB loan pay for?
Are there any other qualifying criteria?
What is the maximum amount I can borrow?
What is the interest rate for this loan?
Are there any fees for this loan?
Do all primary lenders work with the County?
How long do I have to pay off the loan?
Can I refinance the primary loan and leave the
existing loan with the County?
What if I have already used this program?
How long does the process take to get the check
to the title company?
Does my credit need to be perfect to qualify
for the FTHB?
How does the funding work for the FTHB Program?
Is the FTHB Program compatible with FHA?
HOUSING ASSISTANCE REHABILITATION LOAN PROGRAM
Who is eligible for a REHAB loan?
What can an REHAB loan pay for?
What is the maximum amount of money I can borrow?
What is the interest rate for this loan?
Are there any fees for this loan?
How long do I have to pay off the loan?
Do I have to be the homeowner?
Who will contract the work?
Does the contractor have to be licensed?
Can I so some or all of the work myself?
How will the funds be disbursed?
Where do housing assistance
funds come from?
In 1992 the Board of Supervisors signed a Memorandum of Understanding with SEIU Local 1021, directing the Auditor to deduct a penny per hour from each employee represented by SEIU Local 1021. The County matches these payroll deductions and funds are to be used to help employees with housing needs.
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Who is eligible for these loans?
If you are a County employee whose job is represented by SEIU Local 1021, and if you have contributed to the Housing Assistance Fund for the maximum time required for each loan type, you may apply for a loan. See individual loan program criteria for tenor.
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Can I pay into the fund if I am not currently a member?
No. This loan programs are only for SEIU 1021 represented members currently employed by the County.
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What do I do if I want to pay off my loan off early?
Contact the Revenue & Debt (Central Collections) department for current balance information and pay directly to them with cash, a cashier check, or money order only.
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What happens if I leave County employment?
The maximum amount allowed by law will be deducted from your last paycheck. The balance of the loan if any, is then payable in monthly installments of two times the amount that was taken out of each paycheck. The payment is due on the first of each month and must be sent directly to Revenue & Debt (Central Collections) until the loan is paid in full.
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Will my boss or co-workers know that I applied for this loan?
Your application and loan papers are kept strictly confidential. Employees who are directly responsible for administering the program at the Community Development Commission, the Auditor, and Revenue & Debt (Central Collections) are the only people who will know whether you have applied for or received assistance.
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Can I apply via fax?
Yes, but we require an original application to be sent later.
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Rental/Mortgage Assistance Program (RMAP)
What can an RMAP pay for?
The RMAP is an emergency loan program for the purpose of preventing an
employee from becoming homeless. It can be used for delinquent mortgage,
rent, property taxes or hazard insurance. It can also be used for the
first month’s rent and security deposit.
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Who is eligible for an RMAP loan?
If you are a County employee whose job is represented by SEIU Local 1021,
and if you have contributed to the Housing Assistance Fund for at least
13 pay periods, you may apply for a loan.
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What is the maximum amount I can borrow?
The maximum loan amount is $2,250 for permanent full-time or part-time
employees. Extra-help employees may borrow up to $500.00. The money is
paid directly to the entity to whom funds are owed.
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What is the interest rate for this loan?
No interest is charged and payments are deducted from the first and second
paycheck of each month until the loan is repaid in full.
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Are there any fees for this loan?
No.
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How long do I have to pay off the loan?
The payback period will be up to one year for loans from $1 to $750; up
to two years for loans from $751 to $1,500, and up to three years for
loans from $1,501 to 2,250. The maximum loan payment will not exceed $31.25
per pay period.
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How soon can I obtain a second loan?
If it has been at least one year since the date of your last loan you may apply for a second loan. If a balance is still on a prior loan, you may be eligible for this difference between the outstanding balance and the maximum loan amount.
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How long does the process take to get
the check to my landlord or mortgage company?
Please allow five to seven working days to process and approve your application
and obtain a check from the auditor.
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Does my credit need to be perfect to
qualify for the RMAP?
No. Your credit and income are not checked. You just state your need on
the application form, we verify the amount owing with the lender, landlord,
insurance company or tax collector, and a check is requested from the
Auditor.
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FIRST TIME HOMEBUYER PROGRAM (FTHB)
What can a FTHB loan pay for?
The FTHB loan can cover a portion of your down payment.
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Are there any other qualifying criteria?
You must have 5% of the sales price of your own funds for down payment
and/or closing costs, cannot have owned a principal residence (including
a mobile home) within the past three years, or currently own any real
property. The property must be in Sonoma County and the primary loan amount
cannot exceed the single-family loan limit set by FNMA. This limit is
currently $417,000.
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What is the maximum amount I can borrow?
The maximum loan amount is $50,000.
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What is the interest rate for this
loan?
The interest rate is 3% on a fully amortized loan.
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Are there any fees for this loan?
There is a non-refundable $25 processing fee. The Community Development
Commission uses the information from the primary lender, such as the credit
report, income verification and appraisal, so there is no duplication
of loan costs.
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Do all primary lenders work with the
County?
The loan parameters follow Fannie Mae guidelines for second liens and,
as most lenders sell their loans on the secondary market using these guidelines,
there is not usually a problem.
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How long do I have to pay off the loan?
The loan is a 30-year, fully amortized loan. Payments are deducted from
the first and second paycheck of each month until the loan is repaid in
full or until the home is sold, no longer owner-occupied or, in some cases,
when the loan is refinanced.
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Can I refinance the primary loan and
leave the existing loan with the County?
If the total loan payment is lowered, the new first mortgage term is not
reduced, and there is no cash out, then it may be possible to keep the
existing loan.
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What if I have already used this program?
The loan is for first time homebuyers only, so you may not obtain a loan
a second time.
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How long does the process take to get
the check to the title company?
Please allow ten to fifteen working days for the Community Development
Commission to process loan from date of receipt of primary lenders loan
package.
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Does my credit need to be perfect to
qualify for the FTHB?
We use underwriting criteria consistent with lending industry standards
that allow for some derogatory credit items with reasonable explanation
of extenuating circumstances.
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How does the funding work for the FTHB
Program?
Your primary lender will send copies of their loan package and the Commission
will determine eligibility from those documents and the short loan application
you submitted to the Commission. If approved, the Commission will send
loan documents to the title company, which you will sign at the same time
you sign your primary loan documents. All funds will be paid through the
title company.
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Is the FTHB Program compatible with
FHA?
Yes, as well as with the Veterans Administration and most conventional
lenders.
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HOUSING ASSISTANCE REHABILITATION LOAN PROGRAM
Who is eligible for a REHAB loan?
If you are a County employee whose job is represent by SEIU Local 1021, and if have contributed to the Housing Assistance Fund for at least 2088 hours (approx 1 year and 1 day), you may apply for a loan.
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What can an REHAB loan pay for?
The REHAB loan program purpose is to preserve decent, safe, and sanitary housing through the correction of actual or potential health and safety problems and weatherization of the primary residence of a Sonoma County employee that is located in the County of Sonoma.
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What is the maximum amount of money I can borrow?
The maximum loan amount is $15,000.00 for full-time or part-time employees. The money is paid directly to the contractor.
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What is the interest rate for this loan?
The interest rate is 3%, on a fully amortized loan.
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Are there any fees for this loan?
No.
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How long do I have to pay off the loan?
2 – 7 years fully amortized depending on the amount of the loan.
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Do I have to be the homeowner?
Yes, you must be the legal owner of the real property, or the registered owner of the mobile home.
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Who will contract the work?
The employee will coordinate contracting for all work funded by the rehabilitation loan. The employee and the contractor will execute the contract.
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Does the contractor have to be licensed?
Yes, the contractor must be licensed, bonded, and insured, consistent with the job to be performed. The employee must provide evidence of the contractor’s valid state license, contractor’s bond, and insurance consistent with the State of California’s License Board.
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Can I so some or all of the work myself?
“Self-help” work by the owner-occupant may not be part of the contract or loan. No “volunteer” assistance is allowed, primarily for liability reasons.
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How will the funds be disbursed?
All funds are disbursed directly to the contractor in the maximum of two payments, one phase payment and a final payment upon satisfactory completion of work.
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