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 assets BMR buyers can have and on the amount of gift or loan funds they can receive from family or friends to assist them with the purchase of a BMR unit. The asset limit is 50% of the sale price of the BMR unit for households where the applicant is under 62 years of age, and 200% of the sale price for households where the applicant is 62 years or older. Please note, in order to qualify for assets equaling 200% of the sale price of the unit, the applicant must be of 62 years of age or older. Gifts or loans from family or friends are counted as assets and may not exceed 10% of the unit sale price.

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.

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