APPENDIX I

TORCA SHARED APPRECIATION LOAN PROGRAM

 

NON-BORROWER OCCUPANT EMPLOYMENT STATUS

(Applicable to Household Members At Least 21 Years of Age)

 

BACKGROUND

Several TORCA loan applications have been received from households with two or more adults, where only one proposes to be the buyer.  These adults, who are over age 21, are often relatives, companions, or friends.  The TORCA guidelines state that total household income should be used when calculating the loan, not only the income of the proposed borrower.  By doing so, the first trust deed loan amount will be higher, on the assumption that all adult residents contribute to the household expenses.  Thus, the City subsidy will be lower, thereby allowing more households to acquire TORCA Shared Appreciation Loans.  In the event that an adult is a dependent, does not work, or is a student, and is not contributing to the household expenses, then additional documentation is required.

 

In order to avoid misrepresentation, the following documentation shall therefore be provided by the additional household member:

 

A.     Verification of residence

Three pieces of documentation showing that the individual is living in the unit should be provided.  These can be: a driver's license, a credit card bill, a school enrollment form, a car registration form, proof of car insurance, etc.  There should be evidence in the file that this individual does live in the unit, in addition to a signed statement to this effect.

 

B.     Verification of income when the adult is employed

If the non-borrower household member is employed, complete income and asset information should be submitted, including tax returns, bank statements, and a verification of employment form.  This person's income shall be used to calculate the mortgage amount, down payment, and available assets, regardless of whether he or she intends to share ownership.

 

C.     Verification when the adult is not employed

If the non-borrower household member is not employed, the following evidence shall be provided: a) tax returns from the previous two years or, in the event tax returns were not filed, a signed IRS form 9501; b) credit report, which includes information on active bank accounts and credit cards for this person; and c) a signed statement from the adult, certified under penalty of perjury by the applicant, explaining the length of unemployment, source of income, and living expenses.  If the following condition applies, then additional documentation should be provided.

 

1.     The adult is a student

If the adult is a full-time student, documentation from the school shall be provided, stating the individual's current enrollment.  This should be from the Registrar, listing the current semester's course load and fees paid.  A school identification card  on its own is not enough.