BMR Purchase Program

Asset and Gift Limits

The eligibility requirements for the Palo Alto BMR Housing Purchase Program include asset as well as income limits. For applicants under the age of 62, the maximum asset limit is an amount equal to 50% of the selling price of the BMR unit. For applicants 62 years of age or older, the maximum asset limit is an amount equal to 200% of the selling price of the BMR unit. Assets include items such as checking and savings accounts, stocks and bonds, real property, boats, airplanes, expensive jewelry, and valuable fine art, coin and stamp collections. Accounts that have been established for retirement are not included as assets for the purpose of qualifying to purchase a BMR unit.

There is also a limit on the amount of funds applicants can receive as gifts or loans from family or friends to help them purchase a BMR unit. The total amount of such gifts or loans cannot exceed 10% of the selling price of the BMR unit. And all gift or loan funds are counted as assets in determining whether the applicant comes within the applicable asset limit.

Illustration of asset/gift limit for non-seniors: Mr. Jones is 41 years old and has applied to purchase a one-bedroom BMR unit selling for $100,000. To qualify to purchase this unit Mr. Jones cannot have more than $50,000 in assets and no more than $10,000 of that amount may be money received as gifts or loans from relatives or friends to assist him with the purchase.

Illustration of asset/gift limit for seniors: Mrs. Lopez is 63 years old and has applied to purchase a one-bedroom BMR unit selling for $100,000. To qualify to purchase this unit Mrs. Lopez cannot have more than $200,000 in assets and no more than $10,000 of that amount may be money received as gifts or loans from relatives or friends to assist her with the purchase.

Page 339