Resale of a Below Market Rate Unit

Units that are part of the City of Hayward Inclusionary Housing Program (also referred to as below market rate or BMR unit) must be resold to an eligible purchaser approved by the City. The information below will help real estate professionals assisting homeowners of BMR units with a resale, understand the requirements of the resale process and how to get approval from the City. 

Please note: Lenders must work with a third-party escrow company unaffliated with the Lender. An example of a Lender that does not typically work with a third-party escrow company is QuickenLoans as their escrow services are handled in-house. The City would only be able to work with Lenders with in-house services if the Lender agreed to work with a third-party escrow company instead. This is because the City is unable to deposit City documents required for the refinance with the Lender who would be a party to the refinance transaction.

Minimum Eligibility Criteria

Approval is at the discretion of the City and must meet the criteria outlined in the Buyer's Occupancy and Resale Restriction Agreement, with Option to Purchase (the "Resale Restriction Agreement"). 

At a minimum, the eligible purchaser must meet the eligibility criteria below:

  1. Income Eligibility. The combined income for all household members of the proposed purchaser must meet income eligibility requirements. Most City BMR units are restricted to moderate-income households, which means those households whose incomes do not exceed 120% of the median income adjusted for household size as published by the State of California Department of Housing and Community Development. State income limits are adjusted annually. There are some BMR units that are exceptions to this rule, so verify the income eligibility level of the unit you are reselling with the City.
  2. Owner Occupancy. The proposed purchaser will need to certify that they will occupy the Home as their principal place of residence throughout their ownership.
  3. Agreement to Sign Resale Restriction Agreement and Other City Documents. The proposed purchaser will need to agree to sign a resale restriction agreement, promissory note, and deed of trust restricting future resale of the Home.
  4. Agreement to Cooperate with the City. BMR units are monitored by the City and the proposed purchaser will need to agree to cooperate fully with the City in promptly providing all information requested by the City to assist the City in monitoring compliance with the resale restriction agreement.

City Resale Process for BMR Units

  1. E-mail the City. Real estate professionals should e-mail to let us know that the homeowner plans to resale at the start of the process to ensure a timely close of escrow.
  2. Provide Required Documents. Real estate professionals will need to provide the Required Documents for City Review.
  3. Review Required Documents. The City requires a minimum of seven (7) business days once all Required Documents are received to review. This timeline is only an estimate and may be extended if applications are incomplete or the City requires additional information to evaluate the resale request.

  4. Buyer Response Letter. Once the City has finished its review of the Required Documents, we will provide a Buyer Response Letter approving or denying the resale. If the resale is denied, the City will provide an explanation of the denial. 
  5. Routing City Documents for Signature.  The City will require a minimum of 15 business days from the date a resale is approved to route the paperwork for signatures and deposit in escrow.
  6. Deposit City Documents in Escrow. Once the City documents are signed, the City will deposit in escrow.
  7. Close.

Required Documents for City Review

The following information must be provided to the City for review. If sending electronically, please ensure the method of delivery is secure. 


  • Borrower's Authorization to Disclose Information (e-signature is acceptable)
  • Income verification documentation (this list will be provided to real estate professionals separately via e-mail)
  • 1003 - signed by Borrowers
  • 1008
  • Credit Report
  • Loan Estimate (including City's Administrative Fee - see below)
  • Anticipated date for close of escrow
  • Conditional Loan Approval
  • Vesting for trustor, trustee, and beneficiary of new First Mortgage Lender as it will appear on the new First Mortgage Lender Note and Deed of Trust. 

Escrow Officer

  • Preliminary Title Report
  • Estimated Closing Settlement Statement (include City's Administrative Fee - see below)
  • Prepaid shipping label so City documents can be deposited directly into escrow

Proof of Property Insurance

Homeowners of BMR units are required to maintain a standard all risk property insurance policy equal to the replacement value of the Home naming the CIty as an additional insured and loss payee. If the property insurance is covered by the HOA, the City will need to be added as an additional insured and loss payee to the policy for the unit. Proof of property insurance must be furnished to the City prior to the close of escrow. 

Administrative Fee

Administrative fees must be paid by Onwer directly to the City through escrow upon close of escrow unless other arrangements have been made wit the CIty to pay the administrative fee in advance. 

Signed in Counterpart

City documents must be signed in counterpart and deposited with third-party escrow prior to close. 

General Timelines

  • The estimates given are general timelines. Please be advised that City holiday closures and lender/broker/escrow delays responding to the CIty's requests for information/documents can increase these timelines.
  • The City will require seven (7) business days from the date of receipt of the resale documents to review and approve.
  • If the proposed purchaser is approved, the CIty will require a minimum of 15 business days from the date of resale approval to route the paperwork for signatures and deposit in escrow. 
  • Please adjust your escrow closing date accordintly to accommodate these timeframes. 

Questions about Resale

For questions, please e-mail