Thanks to the city's Below Market Rate program—which allows low-income families to rent or buy housing at a preferential rate—the family of three moved into a two-bedroom unit at Verona Apartments for $1,000 a month in rent, half the market rate.

But on Feb. 18, a letter informed the Garretts that they would have to move because Prometheus Real Estate Group, Verona's developer, has decided to sell the units instead of renting them.

Garrett is a 32-year-old engineering technician, making $35,000 a year. In Santa Clara County, his salary puts his family of three in a category right between extremely low-income and very low-income families.

"We were shocked. On that fateful day, the letter was slipped under our door in the middle of the night," Garrett said. "Most of the BMR tenants we know stay in the same apartment for years. But we got booted within six months from when we moved in."

The Garretts are among the 16 families who moved into Verona through the city's BMR housing program.

During the past two months, the Garretts have tried to figure out why things changed, but they have been shuffled back and forth between agencies.

Prometheus referred them to Cupertino Community Services, the nonprofit agency that handles the city's BMR program. Community services told the Garretts the agency has been waiting for more information from the city. The city referred them back to community services, saying that the agency manages the program.

"Nobody could tell us why Prometheus changed their mind. Nobody could tell us how much we have to pay if we want to buy the apartment. It has been very frustrating," Garrett said.

Jon Moss, senior vice president of Prometheus, said the developer's decision to convert apartments into condominiums is legal and purely market-driven.

"When the project was approved by the city council in 2000, it was approved as both condominiums and apartments," Moss said. "By the time we finished it, we had no intention to sell it, but the demand for for-sale housing is much stronger than rental housing now."

Moss said that many people went to Verona's leasing office to inquire about purchasing the units and that many tenants expressed interest in buying the apartments. Although converting apartments into condominiums is not unusual, Moss said it doesn't happen often.

"Silicon Valley has a very special market. Normally, the demand for rental housing goes in the same direction as the demand for for-sale housing, but the two demands have gone in opposite directions in Silicon Valley for the past four years," Moss said.

Moss denied that the developer has handled the situation improperly. "We go beyond what is necessary to make sure the transition is easier for all our tenants," Moss said.

Prometheus offers current tenants—whether they belong to the Below Market Rate program or not—the first opportunity to purchase the Verona home they are occupying or another Verona home of their choice. They are also eligible for a current-resident discount of $5,000. Tenants who would like to transfer to another Prometheus rental property receive a $1,000 check for relocation.

Tenants who decide not to purchase can stay through their current lease term, and all residents receive a minimum notice of 90 days. Prometheus is required by the city to give residents in the BMR program one year to move out. And the 16 units that are currently rented at a below-the-market-rate price will be sold at a below-the-market-rate price to qualified applicants.

"We prepared two separate letters, one for our ordinary tenants and the other for the BMR tenants," Moss said. "In the letter, we told our BMR tenants that if they have any questions, they should call community services, because they are the ones who administer the program. The developer has no right to determine how much the BMR units will cost."

Erica Headley, housing service director of Cupertino Community Services, said she didn't have a chance to talk to the tenants before Feb. 18 because the city informed her of Prometheus' plan on Feb. 17.

"I would love to have called a meeting and talked to all tenants, but I wasn't able to," Headley said. "It is devastating to see the families I helped locate have to relocate."

Headley assures tenants like the Garretts that community services will help them locate to other apartments, but she admits that there are no apartments available for them now.

While Prometheus said the developer has no control over the pricing of below-the-market-rate units at Verona, Headley said she is waiting for the city and the developer to settle on a price and give her more information.

Vera Gil, the city planner who coordinates the BMR program, said none of the prices are final because a city consultant is evaluating the prices. She confirms that the developer has no say in determining the price for BMR units.

"The BMR units won't be available for sale for another year," Gil said. "The price may change then."

So far, she only has the below-the-market-rate price for two-bedroom condominiums at Verona. The price will range between $194,000 and $240,000. She doesn't know the price for one-bedroom condominiums.

Garrett said he feels helpless about the runaround and bureaucracy. His wife, who attends school full time to become a dietician, and he have been talking about quitting school, borrowing money from relatives or taking more jobs to purchase the home they now occupy and have fallen in love with.

A former member of Monta Vista High School's wrestling team, Garrett said his biggest enjoyment now is wrestling with his 3-year-old daughter, Aisalan, in their living room, where furniture collected from garage sales or handed over from relatives matches magically well together. Although they cannot afford to have broadband, they like to show guests the socket to which residents can connect their computers and create a home office. They also have central air conditioning.

Luisa said she wishes the city council, who helped them settle down in Verona, could help them now.