Below-Market-Rate Homes: Do You Qualify?

It just so happens that Pulte Homes has built a new complex over in Emeryville that has set aside 18 units to very low, low, and moderate income earners. The Glashaus development, with sales office at 1299 65th Street, is composed of studios, one and two bedroom units, as well as those with a third bedroom or equivalent. Units being offered at below-market-rates (BMR) have square footage ranging from 560 on the 2 studios to 1,360 sf on the 2/2.5 units, and prices start at $218,400. (Non-BMR units begin at $515,990.)

The City of Emeryville is providing financing programs for those that are income-qualified and are first-time buyers. You may be considered for a unit even if this is not your first home purchase, however you would need to find your own financing. In order to be considered to purchase a unit, you must complete an application, which will be processed in the order determined by lottery. Application deadline is June 8, 2008.

The criteria for the lottery, in addition to income qualification, is as follows:
1. Tenants living in low-income Archstone units
2. Households in which an individual has lived in Emeryville for at least 6 months prior to applying for a unit at Glashaus.
3. Households in which an individual currently works in Emeryville
4. All other qualified households

Who qualifies financially? There are three categories of income: very low, low, and moderate. On the very low end, a single person has a cap of $29,350/yr, while a family of 4 could earn no more than $41,900. On the low scale, income starts at $46,350 and goes to $66,250. On the moderate level, the range is $70,400 to $100,600. Exact BMR requirements for households of 1, 2, 3, and 4 are available here.

There are some special caveats when purchasing a below-market-rate home. First, it must be your primary residence. Second, there is a 45-year deed restriction that affects the process of selling your unit. The website states that “When you want to sell your home, you will be required to contact the City for the eligible resale purchase price and to sell the unit to a very low, low or moderate income household (whose income is approved by the City) at the resale price. Your appreciation will be limited by this restriction to a level affordable to a very low, low or moderate income household, as calculated by the City, based on the federal area median income levels for Alameda County in effect at the time you sell.” This means that your profit margin will, most likely, be minimal.

If you are interested in seeing the BMR units, tours are held on Saturday and Sunday from 1 -2 pm. In addition, workshops for potential buyers will be held on Saturday, May 10th (1pm) and Wednesday, May 14th (6:30 pm) at the Emeryville Senior Center, 4321 Salem Street, Emeryville.

Recent Sweet Digs Posts:

• My Pick of Marin’s New Listings For Under $1 Mil
• Smaller Is Better
• Alameda, Albany, Emeryville: Inventory and Some Sales