SOUTH EL MONTE — A South El Monte affordable homeownership opportunity will give two moderate-income households a chance to purchase newly built homes at the Astaire at Starlite development. The program offers a rare alternative to renting for families struggling to enter the region’s expensive housing market.
The homes are located at 2542 Avalon St. Each has about 1,923 square feet, four bedrooms and 3½ bathrooms.
Information distributed by the city and KB Home outlines income, occupancy and resale requirements for prospective buyers. Applicants who expressed interest beginning July 20 can seek an opportunity to participate in the program.
The city will use a randomized selection process rather than award the homes on a first-come, first-served basis.
South El Monte Affordable Homeownership Eligibility
The South El Monte affordable homeownership program targets households earning up to 110% of the applicable area median income.
A one-person household can earn up to $93,300 annually. The limit increases to $106,600 for two people and $119,950 for three. A four-person household can earn up to $133,250.
The limit reaches $143,900 for five people and rises based on household size. An eight-person household can earn up to $175,900.
Income calculations include buyers and other household members age 18 or older.
Buyers cannot own another home when escrow closes. They must also meet mortgage prequalification requirements.
Selected applicants must respond within two business days after receiving additional program information from a KB Home representative. They then have seven calendar days to submit financial documents to a lender.
Documents can include tax returns, bank statements, recent pay stubs and proof that the applicant does not own other real estate.
Affordable Purchase Price Not Disclosed
A key financial detail remains unavailable to prospective buyers. The materials reviewed by Mid Valley News do not state the restricted purchase price for either home.
The documents also do not explain whether public or developer financing will cover any difference between the market value and affordable sales price.
Such financing could include a subsidy, deferred-payment loan, silent second mortgage or down-payment assistance. The materials reviewed do not identify which, if any, mechanism applies.
Those details could affect the mortgage buyers need and the equity they can accumulate.
The program instead outlines restrictions designed to preserve affordability over time.
Buyers must occupy the home as their principal residence. They cannot use it as a rental, investment or vacation property.
Owners must provide the city with annual certification that they continue to occupy the property. They will also pay homeowners association dues and property taxes.
Buyers must complete homeownership education through a HUD-accredited and certified agency before closing.
Resale Rules Keep Homes Affordable
Owners also face restrictions when selling. They must notify the city in writing at least 90 days before a proposed sale.
The property can be sold only to another eligible purchaser and must comply with a restricted sales price. The city must approve the future transaction.
Those requirements extend the affordable housing benefit beyond the first buyers. When an owner sells, another income-qualified household could receive the same opportunity.
For two local households, the program could provide a path from renting to owning a newly built four-bedroom home. The undisclosed sales price, though, remains essential for families weighing whether the opportunity is financially within reach.
Residents can find program information through the City of South El Monte Housing Division.
