The top three lottery winners will proceed to the next step:
The minimum household size must be one (1) person, with a maximum of three (3) people. All non-minor household members who are not dependents must be on title when the property is purchased. Qualifying dependents must be designated on 2020 Federal Tax Returns. Because qualifying household size influences qualifying household income, applicants must identify household members at the time of application.
Viewing protocols have been established to maintain industry-established COVID-19 safety requirements:
A virtual 3D tour of the exterior and interior of the property is available by clicking here. To maintain and respect privacy for the current owner, the unit number for the condominium will be provided to lottery winners, after the lottery is conducted. The highest ranked lottery winners will be able to visit and view the property prior to entering into a purchase contract.
EPACANDO and BAAHA will be providing a virtual purchase informational workshop that will be conducted on Saturday, December 18th, 2021, from 10:00AM to 12:00PM. The workshop will provide an overview on:
To make a workshop reservation for Saturday, December 18th click here.
At this point in the process, with all approvals in place, the top three (3) applicants will submit a purchase contract to the BMR seller. The purchase contracts for the top three applicants will be processed in the lottery ranking order. The 2nd and 3rd place winners will be in back up position in case the 1st place lottery winner should fall out of contract. Once a purchase contract is signed, it will take approximately 45 days to close the purchase escrow, to actually buy the BMR home
East Palo Alto has established lottery preferences that promote ownership for first time homebuyers that reside and work in EPA. Preferences are not a requirement to apply. However, a preference scoring system will be applied in drawing and ranking priority applicants at the lottery. Preferences include:
Applicants must be first time homebuyers. To be a first time homebuyer, all members in the household may not have been on title or owned a real property in the past three (3) years (from the time you submit your lottery application).
Program participants may be disqualified from purchasing the BMR if their housing cost ratio is either below or over the minimum and/or maximum allowances. A housing ratio is the percentage relationship between the total monthly costs to own the property in relation to the gross monthly household income that the City and/or the first lender apply towards the housing ratio calculation. Monthly housing costs include the principal and interest portion of the mortgage payment, property taxes, insurance, and home owners association fees (HOA). The housing ratio is calculated by dividing the total housing costs by the gross monthly household income. The City and 1st lender derive the gross household monthly income applied towards the ratio calculation. Gross household income includes the household’s total income prior to all deductions from their payroll earnings. Program eligible households must have a housing ratio that falls between a floor of 28% (lowest allowed) and 45% (highest allowed).
BAAHA has estimated the housing costs, which includes mortgage, taxes, insurance, and homeowners association payment, to be approximately $1,750 per month. This estimate is based on a 3% down payment and a 3.00% interest rate. The number provided is only to be used as an estimate. Your household’s actual costs will vary from BAAHA’s estimate. Variation in costs for individual households will occur due to differences in interest rates, FICO scores, the amount of down payment applied, varying property insurance and mortgage insurance costs, and adjustments (if any) in HOA fees.
Below Market Rate (BMR) homeownership comes with restrictions and responsibilities that BMR owners must adhere to. Restrictions on the BMR will be in place for a fifty-five (55) year term which commences on the date of purchase. Primary restrictions during the restriction period include:
To read more about BMR home ownership, click here.
All household members on title must complete a HUD approved homebuyer education course to purchase the East Palo Alto BMR unit. Click here to access sources to complete your approved education requirements. We also encourage applicants to conduct your own search for HUD approved homebuyer education courses on the internet. A certificate of course-completion is not a requirement to apply for the lottery, but is a requirement for purchase.
If you have any additional questions, please contact BAAHA by email at email@example.com. Please make certain to state that you are inquiring about the East Palo Alto BMR and provide us with your phone number.
Ownership of the BMR home requires that a household’s gross combined income may not exceed 60% of the Area's Median Income as assigned by the City of East Palo Alto, and adjusted for household size. Gross income includes the household's total income prior to all deductions from their payroll earnings. For self-employed individuals, the City applies net income provided in the household's 2020 Federal Income Tax Returns. Gross maximum income per household size cannot be greater than:
The City of East Palo Alto (EPA) contracts with a local non-profit housing agency, EPACANDO, to administer their BMR Program. EPACANDO works directly with the Bay Area Affordable Homeownership Alliance (BAAHA), to assist in the sale of the EPA BMR. BAAHA is involved with conducting all BMR application screening, lottery, and sales activities. If you have any additional questions related to the sale of this EPA BMR, please contact BAAHA (www.myhomegateway.org) by email at firstname.lastname@example.org.
The property may not be purchased as a rental / investment property. The owner(s) of the home must be a full time resident(s) who occupy the home as their primary home.
BAAHA will be notifying all applicants by email regarding their lottery eligibility status sometime between January 3 and January 5, 2022.
1765 East Bayshore Road
East Palo Alto, 94303
Application Period for this BMR is closed. New applications are not being accepted. The application period closed at 5:00pm, December 30, 2021
1-Bedroom, 1-Bathroom Loft Style
950 Square Feet (Per Tax Records)
Projected sales price: $216,600
Monthly Home Owners Association Fee: $505
Once a lottery-winning applicant has secured 1st loan approval from their lender, EPACANDO and the City will conduct a thorough review and make a determination on the applicant’s Program eligibility based on the eligibility requirements outlined above. The City, in conducting its review, will require the household to provide supporting documentation (for reconciliation purposes), including and not limited to copies of:
The lottery is projected to be held January 7, 2022. Lottery has been held. For questions regarding the Lottery Application contact BAAHA by email at email@example.com.
The household must demonstrate financial capacity to purchase the BMR. This will include:
The Lottery Application period was closed on::
5:00PM, December 30, 2021
Lottery applicants will be notified by BAAHA as to whether BAAHA has determined them to be eligible for the lottery or not, and with which preferences. Applicants will have an opportunity to appeal for reconsideration. Applicants who pass the preliminary eligibility screening may participate in the lottery. However, the preliminary screening does not provide Program Approval for the applicant. Top-ranked lottery applicants will be required to go through a comprehensive Program approval process.
The lottery application period was closed at 5:00PM, December 30, 2021. Applications that have been Incorrectly filled out or incomplete prior to the deadline will be rejected.
Separate preference points are provided for the live and the work category. Work eligibility is based on your employer’s address, not your home address. Working at home due to COVID-19 does not fulfill the work in East Palo Alto preference requirements.
For a household to qualify for a particular preference, only one member of the household needs to meet the requirement.
Applicants must meet the following eligibility requirements to purchase the EPA Below Market Rate home.
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