Below Market Rate Housing Program

What are the eligibility requirements for the program?

To qualify, applicants must:

1. Fit the Program description of a first time homebuyer;
2. Be income eligible;
3. Be able to obtain financing necessary to purchase a BMR home; and
4. Either live or work in Morgan Hill.

What is a First time Homebuyer?

The BMR Program defines the following as first-time homebuyers:

1. Those who haven’t owned a home in the last three years;
2. Newly single heads of household (have dependent minor children) who may have been homeowners within the last three years but meet the income eligibility requirements’
3. Those who currently work in Morgan Hill, sold their home in another County or State within the last three years, are current renters, and meet the income eligibility requirements.

Income Limits

To qualify for the BMR Program you must be income eligible. The table below shows the current maximum incomes adjusted for household size.

BMR Program Income Limits

December 2007

How much can I expect to pay for a BMR home?

BMR home prices vary based on bedroom count and on the designated income category for the home; applicants are placed in their corresponding income bracket, e.g., Lower Income, Median Income, or Moderate Income.  The following chart shows the current sales price for BMR homes:

Note: These figures are updated annually

What do I have to do to participate in the Program?

Step 1    Add your name to the Interest List

To add your name to the interest list, you must complete an application. Please be advised that the lower income interest list closed effective June 29, 2001. The median and moderate income lists will remain open until further notice.

To participate in the Program, you must submit an application. The application will be reviewed to determine your eligibility and priority on the interest list.

Your application will be placed in one of two priority levels, “A” or “B”. Priority “A” is the highest priority. The highest priority is given to applicants who currently live in Morgan Hill and have lived here for at least one year. Priority “B” is for applicants employed in Morgan Hill. Applicants in the B category will be contacted if a buyer cannot be identified from the Priority A list (current Morgan Hill residents).

Step 2    Approximately 24 months prior to the offering of a home, the applicant will be asked to complete a pre-screening application to verify continued interest, residency, and income.

Step 3    File a formal Program application

Approximately one year prior to the offering of a home, you will be requested to purchase a formal application for the Program for a non-refundable fee, currently, of $30.00. This application is much more detailed than the Interest List application.

Step 4    Decide whether or not you want to purchase a BMR house offered to you

You will be notified by BAHS staff when your name reaches the top of the waiting list and a BMR home becomes available for purchase. You will be given the opportunity to look at the home and determine whether or not you want to purchase it. You can be offered a maximum of three homes. If you decline all three offers to purchase a home, your name will be moved to the bottom of the waiting list.

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