City of East Palo Alto Homeownership Program

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Buyer

BMR Purchase Opportunity

As new BMR homes are built or as current BMR homeowners decide to sell, BMR homes come up for sale. When this happens, EPACANDO, in conjunction with its partner BAAHA, conducts an outreach and selection process on behalf of the City.  Because demand is always high and supply is always low, a lottery is necessary.  

The city utilizes a lottery system and maintains a notification list to select eligible applicants. Only those who meet the eligibility criteria can be on the title and mortgage. A new lottery pool of eligible buyers is created as units become available.  Anyone may apply to join the lottery pool by filling out the Lottery Application Short Form. The lottery procedures give a degree of preference to eligible buyers who live or work in East Palo Alto.

Affordable ownership and rental costs are calculated so that they don’t exceed thirty percent (30%) of the maximum annual household income.  For ownership housing, this assumes a down payment equal to ten percent (10%) of the total purchase price, utilities and other allowances (i.e., property taxes, loan insurance, etc.), and a conventional fixed-rate thirty-year fully amortizing loan in the amount of the difference between the purchase price and the down payment.

First-Time Homebuyer
An applicant can not have owned a home within the last three (3) years.

Current Purchase Opportunities

A lottery will be held in December for the currently available one-bedroom, 1.5-bath BMR condo at 1765 East Bayshore Road.

Step 1: Review Current Listings and Eligibility
Before applying, take a moment to review the available units and ensure you meet the income and household requirements. For each property, you’ll find specific eligibility details.

Step 2: Prepare Your Documents
To complete your application, you’ll need to provide the following documentation:

  • Proof of Income: Pay stubs, tax returns, or bank statements
  • Identification: Government-issued ID for all household members
  • Proof of Residency: A utility bill or lease agreement showing your current address

Step 3: Submit Your Application to Become Lottery Eligible.
Once your documents are ready, you can submit your application either online or in person at the EPACANDO office. We recommend submitting online for quicker processing. You can find the online application forms on each property’s listing page.

BMR ownership comes with restrictions and responsibilities that BMR owners must adhere to.  Restrictions on the BMR are in place in perpetuity.  The resale agreement is renewed over a fifty-five (55) year term, which commences on the date of purchase.  Key ownership restrictions include:

The BMR must be sold at an affordable resale price that the City assigns at the time of the resale.

  • The BMR must be sold to an eligible buyer whom the city must approve.
  • There are refinance guidelines and restrictions.  All refinances must be approved by East Palo Alto.
  • The property must be maintained in good condition at all times.
  • The BMR owner is required to reside in the property full-time and at least ten out of twelve months a year. Strict restrictions disallow the property to be rented out.
  • Guidelines and restrictions govern the requirements and capacity to pass property title to an heir and to any non-BMR Program eligible household.  All BMR title transfers must be reviewed and approved by the City.

 Maximum Household Income

 Ownership of the BMR home requires that a household’s gross combined income may not exceed 60% of San Mateo County’s median income, adjusted for household size.  Household size includes all dependent and non-dependent members that will be occupying the BMR home at the time of purchase. Gross incomes for all non-dependent adult members must be accounted for and represented in the lottery application.  Maximum gross household income allowances based on household size for the year of 2025 are depicted below:

Home Loan Approval

Top lottery winners will be required to receive a first loan approval from a BAAHA-certified BMR program lender. Top-ranked lottery winners will be notified and provided a list of certified BAAHA lenders. Certified BAAHA lenders have extensive experience in underwriting first loans applied towards purchasing BMR properties. Certified lenders may also have access to down payment and closing cost grants that could further promote and assist the lottery winner to purchase their BMR home. BAAHA does not accept and/or require first loan approvals to be submitted with the lottery application.